| February 19, 2004 |
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| Joint Statement on Mitsubishi Motors Corporation |
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| Today MMC announced the results for its 3rd quarter of fiscal year 2003 and its
estimate for the full fiscal year 2003, according to which its loss will be higher
than previously expected. For this reason and in addition to the ongoing restructuring
and Turnaround Plan announced in 2001, the management of MMC is currently working
on a new mid-term business plan, which covers all operational and financial areas
of the company in and outside of Japan. DaimlerChrysler AG as strategic partner and major shareholder of MMC welcomes these efforts and supports the team setting up a new mid-term business plan including the development of the global Alliance with DaimlerChrysler. Already today there is a strong cooperation between MMC and DaimlerChrysler. A number of successful alliance projects are already implemented, for example a joint B-segment platform development and production with Smart, a joint engine factory in Germany, a joint platform for C- and D-segment cars with Chrysler Group, the world engine project, joint purchasing and volume bundling activities and joint distribution activities such as in China, Canada or Mexico, all of which MMC considers to be key to the reestablishment of MMC's profitability. Mitsubishi Heavy Industries Ltd., Mitsubishi Corporation and the Bank of Tokyo-Mitsubishi Ltd. (the 'Mitsubishi Group Companies') also welcome MMC's actions as well as DaimlerChrysler's support and will also continue to support MMC's management. In order to reinforce MMC's management, MMC will - after confirmation through a shareholder meeting, to be held end of April - appoint the current managing director of MHI, Mr.Yoichiro Okazaki, as the new Chairman from the Mitsubishi Group Companies. Both major shareholders will actively cooperate with MMC in its establishing a new mid-term business plan as soon as possible. The new mid-term plan will consist of complementary operational and financial plans to assure a solid financial foundation for MMC's business. It is scheduled to be finalized and announced directly following the shareholder meeting April 30th 2004 for immediate implementation. This will also provide a solid basis for a decision on capital enhancement measures to be considered by MMC and its two major shareholder groups. |
