Mitsubishi Fuso Truck and Bus Corporation Starts Operations

Tokyo, January 6, 2003—Mitsubishi Fuso Truck and Bus Corporation (MFTBC) today started operating as a wholly owned subsidiary of Mitsubishi Motors Corporation (MMC). MFTBC will become a completely independent company in March this year when DaimlerChrysler (DC) purchases a 43 percent stake in MFTBC for approximately 89 billion yen and several Mitsubishi group firms make a collective purchase of 15 percent for 31 billion yen. MMC will hold the remaining 42 percent.

The direct equity participation by DC, the world’s biggest truck maker, allows MFTBC to strengthen its leading position in Japan as well as further enhance its overseas business. The enhanced alliance with DC will enable MFTBC to reap the benefits of economies of scale and additionally tap into DC's wealth of knowledge and technology more directly.

The prime synergies of the alliance with DC include gaining a better market position in Japan and overseas thanks to improved cost performance, quality control, and overall product marketability. The new company will also be able to reduce costs by expanding global purchasing capabilities, jointly investing in new advanced technologies such as environmental technologies, collaborating on the development and sharing of vehicle chassis and components, and sharing common powertrains. In addition, MFTBC and DC global sales and distribution networks will complement each other.

Wilfried Porth from DC takes up the position of President and CEO at MFTBC, while Takashi Usami, former MMC executive vice president and COO, becomes Chairman. The remainder of the board will comprise two directors from DC and three from MMC.

MFTBC currently commands a leading position in the Japanese truck and bus market, and has positioned itself as a key player in Asian commercial vehicle markets. Like other makers of commercial vehicles in Japan and overseas, it must cope with increased cost pressure and competition in an industry characterized by a strong global trend towards realignment and far-reaching alliances.

The Mitsubishi Fuso name stretches back to 1932 when the Kobe Shipyard of Mitsubishi Shipbuilding (currently Mitsubishi Heavy Industries) produced the B46-type gasoline-powered bus. In the seventy years since then, Fuso has become synonymous with high performance and reliability. Considering the favorable brand identity of the name, It was decided to keep Fuso as part of the new entity’s name.