May 10, 1998 Daimler-Benz Talking to Nissan
Filed at 4:08 p.m. EDT
By The Associated Press
TOKYO (AP) -- Daimler-Benz AG, which announced a merger with Chrysler Corp. last week, is reportedly in talks with Nissan Motor Co. to buy a controlling stake in its truck-manufacturing affiliate.
The German maker of Mercedes-Benz luxury cars is negotiating with Nissan to buy a controlling share in Nissan Diesel Motor Co., Japan's fourth largest truck maker, the Yomiuri Shimbun and other Japanese media reported Sunday. A deal could be struck by June, the reports said.
Nissan Motor spokesman Masayuki Yamazaki declined to comment.
The German newsmagazine Der Spiegel carried a similar report Saturday.
Nissan Diesel is struggling with poor earnings in the wake of the Asian economic crisis and a weakening sales at home.
The acquisition would help Daimler strengthen its Asian operations. Nissan Motor, Japan's second largest automaker, wants to be relieved of the burden of bailing out the troubled truck manufacturing unit, the Yomiuri report said.
Nissan Motors would like to sell most of its 39.8 percent share in the truckmaker because it has been carrying much of the burden of supporting the troubled company. Nissan Motors, Japan's No. 2 carmaker, has been helping the truck maker by passing along some of its own small-truck manufacturing business.
Toyo Keizai, a financial information provider, forecast Nissan Diesel will post a net loss of 2 billion yen ($15.4 million) for the fiscal year ending March 1999.
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