Mitsubishi Motors To Scale Back Ties With Daimlerchrysler: Report

TOKYO, Aug 26 (AFP) - Troubled Japanese automaker Mitsubishi Motors Corp. has decided to reduce the scope of its business cooperation with DaimlerChrysler AG, a report said Thursday.
This will include the cancellation of plans to use common platforms in their midsize-sedan production, the business daily Nihon Keizai Shimbun said.
Instead of using a platform developed by DaimlerChrysler, Mitsubishi Motors now aims to continue using its existing platform to make the most of its research and development investment, the newspaper said.
But the company will remain committed to joint development of a small-car platform, in which it plays a leading role, it said.
Mitsubishi Motors' change of tack follows its weakened ties with the US-German automaker, which stopped providing assistance to the Japanese firm in April.
Mitsubishi Motors, Japan's only loss-making carmaker, earlier this year revealed a series of vehicle defect cover-ups and announced large-scale recalls.
Mitsubishi Motors issued a brief statement that did not categorically confirm or deny the report but said the carmaker would "continue alliance projects (with DaimlerChrysler) that benefit both. As for mid-sized cars, we are considering various options," it said.
The Nihon Keizai said the two automakers had agreed to fully cooperate in parts and materials procurement, but joint purchasing was now likely to cover only parts and materials that provide clear benefits.
They had also agreed to consider cooperating in distribution, but Mitsubishi Motors was no longer interested because it believed that joint distribution would be of little benefit, the newspaper said.
An agreement to make Netherlands Car BV a 50-50 joint venture by July may also be canceled, the Nihon Keizai said.
Mitsubishi Motors intends to ask DaimlerChrysler to hold a majority stake in NedCar on the grounds that production there has been led by the German car giant, it said.
Mitsubishi Motors plans to maintain its ties with NedCar, which makes small cars under the Mitsubishi and DaimlerChrysler brand names, it said.
Mitsubishi Motors declined to give any details on the NedCar issue, saying it is in talks with DaimlerChrysler to decide when and how much to sell NedCar stakes.
Cooperation in other areas is expected to continue, the newspaper said.