DaimlerChrysler moves to put the brakes on vehicle fault
June 29, 2004
Tokyo - US-German auto giant DaimlerChrysler said Tuesday it will recall more than a quarter of Japan's Mercedes-Benz cars.
The recall affects 121 306 of the 500 000 Mercedes-Benz vehicles sold in Japan including certain station wagons, sedans and two-door convertible sports cars as well as other vehicles imported between April 1997 and June this year.
DaimlerChrysler, which controls scandal-embroiled local automaker Mitsubishi Motors, said the recall was part of a worldwide recall of 839 000 Mercedes-Benz vehicles with braking defects.
It was not clear how much the recall would cost, DaimlerChrysler Japan spokesman Tsuyoshi Tanaka said.
At least one accident in Japan was caused by the defects, according to the Japanese transport ministry.
The recall came as Mitsubishi Motors on Tuesday said it was seeking ¥546 billion (R31.7 billion) in bailout funds, up from its original plan of ¥450 billion.
Japan's fourth-largest carmaker, one-third owned by DaimlerChrysler, is reeling from the fallout of a series of vehicle defect cover-ups that have devastated its share price and sent sales plummeting.
DaimlerChrysler's stake in the automaker will drop to about 20
percent under the bailout plan involving Mitsubishi group companies and other investors. - AFP
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