A day after announcing a capital tieup between DaimlerChrysler AG and Mitsubishi Motors Corp., MMC President Katsuhiko Kawasoe indicated Tuesday that the Japanese automaker may obtain a stake in the German-American firm in the future.

"We haven't discussed the idea (of Mitsubishi's obtaining a stake in DaimlerChrysler) and we are going to talk further about our alliance next month," Kawasoe told a news conference at a Tokyo hotel. "It might happen in the future."

According to the agreement revealed in Germany Monday, DaimlerChrysler will acquire a 34 percent stake in the Japanese automaker for 225 billion yen through the purchase of new shares to be allocated by MMC. The deal will create the world's third largest auto group with annual production of 6.4 million units.

Meanwhile, DaimlerChrysler Chairman Juergen Schrempp, who was also present at Tuesday's news conference, stressed that his firm will operate an Asian truck business on its own after failing to find a suitable partner.

Schrempp said that although he had initially envisioned cooperating in this area with MMC, DaimlerChrysler, the world's largest truck maker, will work in the Asian market by itself.

"It will take a little bit longer but it will be less risky," he said.

The alliance between MMC and DaimlerChrysler will be limited to passenger car and sport-utility vehicles because MMC will continue its capital and business alliance in the bus and truck areas with Swedish AB Volvo, an agreement that was made last year.

Kawasoe said MMC will maintain business alliances with European automakers including Automobiles Peugeot, Renault SA and Fiat Auto as long as all parties benefit.

Under Monday's agreement, three DaimlerChrysler officials will sit on MMC's board, which will be reduced from the present 36 members to 10. MMC is planning to set up an executive committee in addition to the board, Kawasoe said.

Earlier Tuesday, Ministry of International Trade and Industry chief Takashi Fukaya hailed the alliance, expressing hope that the two automakers strengthen their global competitiveness and fully realize the merger's potential.

Toyota China project

NAGOYA (Kyodo) Toyota Motor Corp. announced Tuesday that it has signed an agreement for a joint manufacturing project in China with a local partner, making it the third Japanese automaker to begin production in China.

Under the pact, Toyota and China's Tianjin Automotive Industrial (Group) Co. will form a 50-50 joint venture with capital of some $97 million as early as this year, pending final approval from China's Ministry of Foreign Trade and Economic Cooperation and the Tianjin Municipal Government, Toyota said.

Beginning in 2002, the joint venture will produce annually about 30,000 passenger cars based on Toyota's Vitz economy car. It will raise annual output to around 100,000 vehicles depending on demand, the company said.

The Tianjin automotive group produces the Charade compact car under license from Daihatsu Motor Co. of Japan, a Toyota Motor group company.