Mitsubishi Motors Corp. will allow a raise in the capital ratio of DaimlerChrysler AG because Swedish truck maker AB Volvo plans to sell its 3.3 percent stake in MMC to DaimlerChrysler to end Volvo’s tieup in the truck and bus business, a top MMC official said Tuesday.
DaimlerChrysler is expected to announce at a shareholders meeting today its decision to buy MMC’s shares held by Volvo.
MMC is also set to revise the agreement with DaimlerChrysler that restricts the capital ratio of DaimlerChrysler to below 34 percent.
Volvo bought a 5 percent stake in MMC in December 1999. DaimlerChrysler took a controlling 34 percent in the Japanese automaker last October, reducing the capital ratio of Volvo to 3.3 percent.
DaimlerChrysler’s capital ratio will increase to 37.3 percent as a result of the deal, surpassing the Mitsubishi group’s total of 34 percent, grasping the management of Japan’s fourth-largest automaker in the passenger vehicle business.
In January, MMC accepted a chief operating officer from DaimlerChrysler, sparking a reaction from Volvo.
DaimlerChrysler and Volvo are rivals in the truck business.
The troubled Japanese automaker aims to boost restructuring efforts under a tieup with DaimlerChrysler not only in the car business but also in the commercial vehicle business, industry analysts said.
Tennex stake to move
Nissan Motor Co. said Tuesday it will sell a 33.3 percent stake in Tennex Corp., a Nissan group firm specializing in car filters, to Germany’s Mahle Filtersysteme GmbH.
The deal will reduce Nissan’s stake in Tennex to 23.4 percent, making it the second-largest shareholder after Mahle Filtersysteme, it said. The share transfer is expected to be completed April 20.
Tennex is a major supplier of engine parts to automakers in Japan, Europe and North America.
It makes similar products — including air-intake systems, oil filters and carbon canisters — to Mahle Filtersysteme, which is wholly owned by Mahle GmbH, a key supplier to French carmaker Renault SA.
Renault owns 36.8 percent of Nissan and is overseeing its rehabilitation.
Nissan Executive Vice President Itaru Koeda said the share deal with Mahle Filtersysteme will mutually benefit both Tennex and the German firm as they expand their global business.
Isuzu recalls vehicles
Isuzu Motors Ltd. said Tuesday it will recall and repair for free one bus and three truck models because of defects in power transmission systems and brakes.
The bus is Isuzu’s Cubic model produced between September 1998 and March 2000 and the recall will affect 128 units, Isuzu said in a report presented to the Land, Infrastructure and Transport Ministry.
The 84,206 trucks subject to the recall are Isuzu’s Elf, the Atlas of Nissan Motor Co. and the Condor of Nissan Diesel Motor Co., produced between April 1993 and December 1996. Isuzu subcontracted production of the two Nissan group trucks.
Isuzu said it found a loose part in the power transmission in the bus, while in the accelerator cables in the trucks it found flaws that could damage the brake pipes.
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