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FRANKFURT, Germany - The automaker DaimlerChrysler AG said Friday it has sold its remaining 12.4 percent stake in Japan's Mitsubishi Motors Corp. to the U.S. investment firm Goldman Sachs Group Inc. The purchase price wasn't disclosed.

But DaimlerChrysler said the sale would boost its revenue for 2005 by some 500 million euros ($588 million).

The German-American car maker once held 37 percent of Mitsubishi Motors as part of its goal to become a global auto powerhouse, but in 2004 the company decided against pumping more money into the troubled Japanese automaker.

As a result of the deal, Goldman Sachs now becomes Mitsubishi Motors' largest shareholder with a 13.4 percent stake. Before the latest share transaction, DaimlerChrysler was Mitsubishi Motors' fourth-largest shareholder.

Mitsubishi Motors, Japan's fourth-biggest carmaker, has seen its sales in Japan plunge after acknowledging five years ago that it had systematically hidden auto defects for more than two decades to avoid recalls.

Mitsubishi Motors, also known as MMC, said current cooperation projects with DaimlerChrysler would not be affected by the share sale.

The two carmakers jointly develop and produce engines and share use of vehicle architecture. They also jointly produce passenger cars, sport utility vehicles and pickup trucks in Europe, North America, China and South Africa.

"MMC will maintain the relationship with DaimlerChrysler as business partners where both parties continue working on individual alliance projects that are mutually beneficial," the company said.

On Friday, Rudiger Grube resigned from his position on the board of directors of Mitsubishi Motors. The company gave no immediate reason.

Shares of DaimlerChrysler gained 1.8 percent to 42.72 euros ($50.25) in Frankfurt trading. ___
On the Net:
http://www.daimlerchrysler.com

AND

From www.DaimlerChrysler.com

DaimlerChrysler Has Agreed to Sell Its Stake
in Mitsubishi Motors Corporation

• Sale of remaining 12.4% equity interest
• Financial income to improve by approximately
  EUR 500 million
• Joint projects to be continued

Stuttgart, Germany, November 11, 2005
Today, DaimlerChrysler AG has agreed to sell its remaining equity interest in Mitsubishi Motors Corporation (MMC).
DaimlerChrysler’s shareholding in MMC is entered in the balance sheet as a financial investment and currently amounts to 12.4% of MMC’s total capital stock. Due to the complete sale of its shares in MMC, DaimlerChrysler’s financial income in 2005 will improve by approximately EUR 500 million.
Proceeds of the sale and the exact impact on financial income will be published after closing, which will take place by the end of November the latest.
The current cooperation projects of DaimlerChrysler and MMC will not be affected by the disposal, and will continue as previously agreed. Some examples of such projects are the joint development and production of engines, the shared use of vehicle architecture and the joint production of passenger cars, sports utility vehicles and pickup trucks in Europe, North America, China and South Africa.
In addition, DaimlerChrysler and MMC plan to renew and extend current projects which are mutually beneficial.
Today, Dr. Rüdiger Grube resigned from his position on the Board of Directors of Mitsubishi Motors Corporation.
The MMC shares offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.