Mitsubishi 2000 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2000 Mitsubishi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

28
Operational review
28
Operational review
Equity and operational alliances
■AB Volvo
Under an agreement signed in December 1999, MMC and
AB Volvo are to each acquire a maximum equity stake of
5% in the other. AB Volvo subscribed to a new issue of
48,516 shares, and acquired the equivalent of a 5% stake in
MMC. By 2002, MMC will make purchases of AB Volvo
stock on the stock markets until it acquires the equivalent of
a 5% stake in the Swedish company. In April 2000,
MMC formed its commercial vehicle division into an
internal-company. This is to be spun off by July 2001
into a separate company in which AB Volvo will ac-
quire a 19.9% stake.
Collaboration between MMC and AB Volvo has
begun with the joint development of a cab for a medium
truck. Benefits stemming from this project include shar-
ing of product and technology development costs, as
well as enabling the use of common parts and compo-
nents. Other benefits the alliance is expected to bring
include expanded sales in Europe, and collaboration
in the truck business in South America and other
regions.
■DaimlerChrysler
Under the terms of an alliance agreement signed in July
2000, DaimlerChrysler will make a capital investment
of ¥225 billion to acquire a 34% equity stake in MMC.
In October 2001, MMC and DaimlerChrysler will as-
sume joint ownership of MMC's European production
unit Netherlands Car B.V., where they will produce a
small car to be developed jointly by the two companies.
Sharing the same platform, this model developed for the
In addition to the achievements made under RM2001, fiscal 1999 was a year of alliance
making for MMC. The Company forged potent equity and operational alliances with
DaimlerChrysler in the passenger car sector and with AB Volvo in the commercial vehicle
sector, with high expectations that the resulting synergies will enable the Company to con-
solidate and to grow its business. As the 20th century comes to a close amid a dizzy regroup-
ing in the industry, MMC has chosen the optimum partner in each sector for its continuing
success and prosperity into the new millennium: signing with AB Volvo in December 1999,
and with DaimlerChrysler in July 2000.
MMC and AB Volvo announce commercial vehicle alliance