Daimler Acquires 43% of Mitsubishi’s Truck Unit

As part of a plan to expand its truck operations in Asia, DaimlerChrysler AG said Friday it has agreed to pay $1.14 billion for stakes in the truck divisions of Mitsubishi Motors Corp. and Hyundai Motor Co., Bloomberg reported.

The Germany-based truck giant will pay Mitsubishi $744.4 million for 43% of its Fuso truck unit, and $391.8 million for a 50% stake of Hyundai’s truck unit, the company said in an announcement to the Frankfurt exchange.

Expansion into Asia, the world’s fastest growing commercial vehicle market, is one of Daimler’s major goals, Bloomberg said. Over the next 10 years, Daimler expects Asia will account for 50% of all commercial vehicle sales, up from 43% currently.

Daimler produced 493,000 vehicles in 2001, and has 20% market share of the world’s commercial vehicle market, Bloomberg said. The company also owns Freightliner, the largest maker of trucks in the United States.

Analysts told Bloomberg that strategically, the move was a sound one, but in the short term it could put pressure on the company’s cash situations, especially as it continues to try and restructure Freightliner.

Starting in 2003, the Mitsubishi unit will be a separate division, Reuters reported, under the name Mitsubishi Fuso Truck and Bus Corp. Daimler will appoint four of the eight members of the managing board, including the chief operating and financial officers.

Analysts told Bloomberg Daimler only took a minority stake in Fuso to keep the Japanese company’s debt off of its balance sheets.

Fuso employs 17,477 people, Bloomberg said, and made 140,000 vehicles last year. Hyundai’s truck division employs 4,900 workers and built 42,900 trucks in 2001.

The new South Korean truck company will be called Daimler Hyundai Truck Corp.