Mitsubishi Motors, the scandal-hit Japanese carmaker, has agreed to pay compensation worth some billion yen (762 million dollars) to DaimlerChrysler for losses on its investment in the Mitsubishi Fuso truck business, a report published on March 10.
The deal will involve Mitsubishi Motors transferring its 20 percent stake in Mitsubishi Fuso Truck and Bus Corp to DaimlerChrysler and offering it a cash settlement of 20-30 billion yen, the Financial Times said.
DaimlerChrysler and Mitsubishi Motors will announce the deal on Thursday, the newspaper added.
A Mitsubishi Motor spokesman declined comment on the report but confirmed a compensation deal would be finalised soon.
Mitsubishi Motors said last month it would make a cash payment and transfer its remaining 20 percent stake in its affiliate Mitsubishi Fuso to the German-US auto giant. The boards of Mitsubishi Motors and DaimlerChrysler approved a letter of intent on "compensation for financial damages resulting from quality issues and recalls at Mitsubishi Fuso Truck and Bus Corp," the Japanese firm said in February.
The amount of the cash compensation has yet to be finalised although it was earlier estimated by Japanese media at 20 billion yen.
The associated transfer of the shares would bring DaimlerChrysler AG's stake in the truck and bus maker to 85 percent.
DaimlerChrysler paid Mitsubishi Motors some 140 billion yen in 2004 for a 65 percent stake in Mitsubishi Fuso but soon afterwards a series of scandals unfolded over a record of covering up defects.
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