DaimlerChrysler AG will pay about $675 million for 40 percent of Mitsubishi Motors Corp.'s new truck unit while Mitsubishi itself will own the rest. The unit needs to cut costs to make the investment viable.
DaimlerChrysler, the world's largest truckmaker, also plans to send an executive to be the venture's president once Japan's No. 4 automaker makes the business a separate entity.
Tokyo-based Mitsubishi Motors will be able to use additional investment to develop new vehicles.
At the same time DaimlerChrysler will get access to the truck market in Asia.
Mitsubishi Motors' shares fell as much as 2.6 percent. DaimlerChrysler shares fell 2.9 percent.