Commenting on the spin-off, Rolf Eckrodt, MMC president and CEO said: "We will now focus our management resources solely on our passenger car turnaround. Our improved financial situation also gives us a solid base to drive future growth."

Today's announcement puts MMC in a strong position to further stabilize the financial standing of its passenger car division by substantially reducing interest-bearing debts. This, coupled with increased flexibility to enhance investments and the heightened alliance with DC, will contribute to strengthen competitiveness and ensure a solid footing for MMC's passenger car operations in the long term.

The spin-off also puts the new company, Mitsubishi Fuso Truck and Bus Corporation, in a strong position. "Direct investment from DaimlerChrysler in Mitsubishi Fuso will enhance ties allowing further economies of scale," Eckrodt added. Mitsubishi Fuso will also gain more direct access to DaimlerChrysler's wealth of knowledge and technology.