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Monday, 4 September, 2000, 11:24 GMT 12:24 UK
DaimlerChrysler in new Mitsubishi talks
A Mitsubishi Shogun
DaimlerChrysler wants more of Mitsubishi for its money
Mitsubishi Motors on Monday said it was in talks with its partner DaimlerChrysler about major management changes.

Japan's fourth largest carmaker said the negotiations would concern cooperation between the two companies and quality control but declined to give further details.

Japanese media reports suggest the changes will involve the German-US carmaker lifting its stake in Mitsubishi Motors to 40% from 34% as well as gaining a fourth seat on the board.

The discussions were announced a day after Mitsubishi Motors' offices were raided by police for the second time in eight days.

Complaints cover-up

The raids had followed the revelation of a long-running cover-up of customer complaints.

Under the alliance announced in March, DaimlerChrysler will become Mitsubishi Motors' controlling shareholder later this year when it completes a 225bn yen purchase of newly-issued shares.

Mitsubishi group companies' combined holdings will fall to 33% from 48%.

The reports did not say whether the new reorganisation would involve a fresh share issue or whether DaimlerChrysler was renegotiating the terms of its deal to allow it to buy a 40% stake for the same amount it had agreed to pay for 34% of the company.

The Financial Times had earlier reported that DaimlerChrysler had sent two senior executives to Tokyo for emergency talks about the purchase and was very keen to see the price reduced after Mitsubishi admitted the complaints cover-up.

DaimlerChrysler had turned down a request to send one of its managers to replace Mitsubishi Motors' president Katsuhiko Kawasoe, Japanese media reports said.

Mr Kawasoe, who is expected to resign later this month, will instead be replaced by company vice-president Takashi Sonobe, the reports said.

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28 Aug 00 | Business
Police raid Mitsubishi headquarters
23 Aug 00 | Business
Mitsubishi extends recall
19 Jul 00 | Business
Mitsubishi recalls 514,000 vehicles
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