Despite recent reports that Volvo and Mitsubishi are moving ahead on a joint medium-duty project, there are more signs that Volvo competitor DaimlerChrysler's controlling stake in the Japanese automaker is causing problems for the Volvo-Mitsubishi deal.
London's Financial Times reported yesterday that Mitsubishi has failed to agree on financial terms for selling a 19.9 percent stake in its commercial vehicle operations to Volvo. Although the deal was first announced in October 1999, financial terms apparently were not settled at that time. The arrangement calls for a separate business entity for Mitsubishi's commercial vehicle operations, and Volvo was scheduled to buy the stake in that new business later this year.
Although DaimlerChrysler has said it would honor the formation of a Volvo-Mitsubishi joint venture in commercial vehicles, speculation is rife in the industry that DaimlerChrysler executives want control of Mitsubishi's truck and bus operations as the company tries to expand its presence in Asia.
Under DaimlerChrysler's deal with Mitsubishi, it can increase its current 34 percent stake to 100 percent after three years. The Financial Times points out that DaimlerChrysler could therefore end up controlling 80.1 per cent of the joint venture with Volvo.
London's Financial Times reported yesterday that Mitsubishi has failed to agree on financial terms for selling a 19.9 percent stake in its commercial vehicle operations to Volvo. Although the deal was first announced in October 1999, financial terms apparently were not settled at that time. The arrangement calls for a separate business entity for Mitsubishi's commercial vehicle operations, and Volvo was scheduled to buy the stake in that new business later this year.
Although DaimlerChrysler has said it would honor the formation of a Volvo-Mitsubishi joint venture in commercial vehicles, speculation is rife in the industry that DaimlerChrysler executives want control of Mitsubishi's truck and bus operations as the company tries to expand its presence in Asia.
Under DaimlerChrysler's deal with Mitsubishi, it can increase its current 34 percent stake to 100 percent after three years. The Financial Times points out that DaimlerChrysler could therefore end up controlling 80.1 per cent of the joint venture with Volvo.
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