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Mitsubishi to seek compensation from DCX for SMART ForFour cancellation

Mitsubishi to seek compensation from DCX for SMART ForFour cancellation

Posted Mar 30th 2006 5:34PM

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Following DaimlerChrysler's announcement that it will be stopping production of the SMART ForFour sedan, partner Mitsubishi Motors Corp. has stated it will end production at the company's Netherlands plant as well. The Japanese automaker still plans to manufacturer engines for DCX's SMART two-seaters.

Both companies have not yet determined when will be the last day of production. The Nihon Keizai Shimbun states, though, that Mitsubishi will be seeking financial compensation for DCX's abrupt termination of their partnership in the ForFour.

[Source: Nihon Keizai Shimbun via AFX News Limited via Forbes]

Category: Plants/Manufacturing, Daimler, Mitsubishi, Smart, Earnings/Financials

Tags: engines, finances, Netherlands, production

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66coronet

So what's going to happen to the mitsubishi colt/ forfour.

April 12 2006 at 4:50 PM Report abuse Permalink rate up rate down Reply

EquinsuOcha

Quote: These silly partnerships will not work. They are not stable for long period of time.

How long do you consider a long period of time? DCX and Mitsubishi have been partners since the late 1970's with the D50, Arrow, Colt, Aspire, Expo, and Mighty Max just to name a few. They've shared components, parts and platforms with the Sebring, Cirrus, Eclipse and Stratus for over a decade, but somehow they're not stable for a long period of time? I think you're a bit off on this. None of those cars / trucks / suv's were ever junk either. Many of them are still on the road, and people will swear by them.

It's unfornate Smart won't make it here. But that just means a better market for the new Colt when Mitsubishi does bring it to the US.

March 31 2006 at 4:31 PM Report abuse Permalink rate up rate down Reply

Axel

Actually, the ForFour is a pretty good car. We've had one on a holiday trip in spain. It was quick, easy and fun to drive and seemed pretty solid (regarding that most tourists handle rental cars like trash and that one already had > 10k miles).

Too sad it didn't sell well...

March 31 2006 at 12:02 AM Report abuse Permalink rate up rate down Reply

Dogshed

I thought they were going to bring the Smartcar to the U.S.
and the four seater was neccessary for the U.S. market.
-Jeff

March 30 2006 at 11:48 PM Report abuse Permalink rate up rate down Reply

iQuack

Didn't DCX sue Mitsu for selling the FUSO truck company to DCX before it was revealed that the trucks' wheels were falling off?

So, now Mitsu wants payment for Smart's dropping the not so smart 4 door?

I'll sue you, and you sue me, oh what fun it will be!

That DCX-Mitsu relationship hasn't been a favorable one even though the Dodge Caliber and upcoming Sebring and Stratus replacements are full of Mitsubishi engineering and parts.

The new DCX cars will be good, but I'd still be a bit uneasy about what might become obsolete and how soon with respect to DCX's small and mid-sized cars.

I agree with #1--most of these partnerships are lousy deals that spawn cars that are substandard, too. The only time Honda denigrated it's good name was when it badged an Isuzu Rodeo the "Honda Passport." That sorry vehicle gave Honda dealers an SUV to sell until the Pilot was ready, but at what cost to Honda's sterling reputation?

March 30 2006 at 8:40 PM Report abuse Permalink rate up rate down Reply

Steve Kilburn

These silly partnerships will not work. They are not stable for long period of time.

Instead now that parent Mitsubishi is thinking of buying Isuzu stake, Subaru, Mitsubishi, Isuzu and Suzuki should think about merging themselves into a single company. With GM's recent offloading of Suzuki, Subaru and at any moment Isuzu, the signs are in right direction for merger.

United they will stand, individually they will not be bale to survive. Automotive climate is becoming more harsh, only the strongest and biggest and most efficient will survive.

GM is big but not efficient. And these silly partnerships with Daimler is only going to make matters worse.

The japanese small four should quickly merge and start competing head-to-head with Toyota and Honda, otherwise they are doomed.

March 30 2006 at 6:58 PM Report abuse Permalink rate up rate down Reply