Saturday, April 22, 2006

DaimlerChrysler eyes takeover of Smart engine plant

STUTTGART, Germany (MarketWatch) -- German-U.S. carmaker DaimlerChrysler AG (DCX) intends to fully take over the plant that produces the engines for the Smart "forfour" model and Mitsubishi Motors Corp.'s (7211.TO) Colt model, according to an application filed for the deal.
The Federal Cartel Office published the application.
The eastern Germany-based plant, which is operated by MDC Power GmbH, is a 50-50 joint venture between DaimlerChrysler and Mitsubishi.
DaimlerChrysler has said it will stop producing the Smart forfour model and is in talks with Mitsubishi over compensation payments for canceling the partnership contract, which would otherwise have expired in 2010.
DaimlerChrysler wasn't immediately available to comment.

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