New executive to run carmaker April 13, 2004 BY KAE INOUE AND AMKI SHIRAKI BLOOMBERG DaimlerChrysler AG, which owns 37 percent of Mitsubishi Motors Corp., will buy about $1.43 billion of additional shares in Japan's fourth-largest automaker as early as 2006 to take a majority stake, Mitsubishi executives said. Mitsubishi Motors will seek approval at its April 30 shareholders' meeting to issue as many as 5.92 billion new shares, or four times the number now outstanding, said the executives who declined to be named. The shares may be sold to DaimlerChrysler as early as 2006. DaimlerChrysler is bringing in a new chief executive, Andreas Renschler of its Smart minicar division, to revive Japan's sole unprofitable automaker under a rescue plan costing about 700 billion yen, or about $6.6 billion, the executives said. Of that amount, DaimlerChrysler will invest 400 billion yen, or $3.8 billion. The Tokyo-based carmaker has been hurt by recalls of more than 2 million vehicles, and 2003 U.S. sales fell 26 percent after the company tightened auto loan policies to counter surging defaults. DaimlerChrysler, the world's fifth-largest automaker, has previously said it plans to raise its stake in Mitsubishi Motors to more than 50 percent after the Japanese automaker cuts its 1.14-trillion yen debt and return to profitability. Mitsubishi group companies plan to invest about 120 billion yen, or $1.13 billion, in Mitsubishi Motors, with 100 billion yen, or $948 million, coming from Mitsubishi Heavy Industries Ltd., Mitsubishi Corp. and Bank of Tokyo-Mitsubishi Ltd., the executives said. Other group companies, including Mitsubishi Trust & Bank Corp., Tokio Marine and Fire Insurance Co. and Meiji Yasuda Life Insurance Co., will invest about 20 billion yen, they said. Mitsubishi Motors will probably borrow about 150 billion yen, of which no more than 50 billion yen may come from the state-run Development Bank of Japan, the executives said. Mitsubishi Motors shares rose as much as 8.7 percent to 350 yen in Tokyo. DaimlerChrysler shares rose 25 cents to $41.38 on the New York Stock Exchange on Monday.