Daimler manufactures the well-known luxury Mercedes Benz vehicles. Daimler acquired the American Chrysler Corp. a couple of years back.
According to Melchor R. Dizon, first vice president of the marketing division of Mitsubishi Motors Philippines, Daimler-Chrysler acquired a stake in Mitsubishi to be able to use the distribution network of Mitsubishi in the Asian region. "We expect to sell Mercedes Benz vehicles at some point in time," Dizon said.
Dizon explained that under Japanese corporate law, a 34 percent stake is equal to a majority stake that entitles the owner to veto powers.
"Although the Mitsubishi Group still controls 34 percent of Mitsubishi Motors Japan, the 34 percent stake is held by various subsidiaries of the Mitsubishi Group," Dizon explained.
The 34 percent stake in Mitsubishi Motors Japan which Daimler-Chrysler bought is solidly controlled by the German-American car corporation.
At present, Mercedes Benz vehicles are sold in the Philippines through an exclusive dealership agreement with Commercial Motors Corp. (CMC).
Dizon said there will be no problem with the dealership arrangement since it is negotiated annually.
Mitsubishi Motors currently ranks No. 2 in the overall automobile industry. It manufactures the popular Adventure, an Asian utility vehicle, and the Pajero, an SUV. However, its passenger car – the Lancer is not as popular as the Honda Civic and Toyota Corolla.
Mitsubishi is hoping to eventually catch up with its competitors. – Marianne Go