Press Release

Mitsubishi Motors Achieves Major Milestone in its European Diesel Strategy

Agreement with Volkswagen AG Reached for the Supply of 2.0 L Diesel Engines
Rolf Eckrodt: "We will source from wherever it is best for our customers."
Joint Procurement with Chrysler Group yields competitive advantage

Tokyo, September 10, 2003 -Mitsubishi Motors Corporation (MMC) today announced that it has signed a long-term agreement with Volkswagen AG for the supply of Diesel engines on the sidelines of the 2003 Frankfurt Motor Show proving its long-term commitment to its European customers.

The selected unit will be a 2.0L, 4-valve pump-injector engine, complying with EU-4 exhaust emission standard.

From 2005 onwards, virtually all new Mitsubishi Motors models will be offered in Europe with a state-of-the-art Diesel engine, starting with this unit fitted to the new Mitsubishi Grandis, a sporty full-size MPV shown for the first time in Europe at the 2003 Frankfurt Motor Show. Grandis will be launched in 2004 with a 2.4 l MIVEC gas engine, to be followed in 2005 by the Diesel version.

This engine supply agreement is part of a larger cooperation in the area of engines between DaimlerChrysler AG and Volkswagen AG which had been announced today. That framework agreement foresees an overall engine supply of annually up to 120,000 units for vehicles of both Mitsubishi Motors and Chrysler Group.

"Instead of opting for an expensive stand-alone development of Diesel engines we will source Diesel engines from wherever it is best for our customers," said Rolf Eckrodt, MMC President & CEO. "Teaming up with Chrysler Group, this time in the area of procurement, again yields a competitive advantage for Mitsubishi Motors and hence for its customers."

This release follows earlier announcements that the European Colt, Mitsubishi Motors' new compact car in the B-segment due to be launched in spring 2004, will be equipped with Diesel engines supplied by DaimlerChrysler from its Stuttgart-Unterturkheim plant.