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DaimlerChrysler acquires Volvo's share of MMC

DaimlerChrysler has confirmed it will buy Volvo's 3.3% stake in the Mitsubishi Motors Corporation.

The purchase will give the German/US company a 37.3% stake and includes all contractual agreements and the rights to the planning and development of new light trucks from Volvo for £207m.

The move is aimed at giving DaimlerChrysler at stake in the Asian truck markets.

From yesterday... Jurgen Schrempp, DaimlerChrysler chairman, has told the company's annual shareholders' meeting in Berlin today that Chrysler will meeet its target to break-even next year.

"Workforce reduction is proceeding according to plan and agreements on cuts in the cost of materials in 2001 have already been reached," he said.

"The Chrysler sales network has been restructed and realigned. Sales targets for the first three months have been met. And we now have a lower inventory than any of our competitors."

The Chrysler Group, he said, should reach break-even in 2002. A return on sales is forecast to come in at approxiamately 4% in 2003.

DaimlerChrysler expects to post an operating loss of between £495m and £619.7m during the first three months of the year.

It will publish a full interim report for the first quarter of 2001 on April 25.

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