Japanese carmaker Mitsubishi Motors, part of the DaimlerChrysler AG group, is to take control of the marketing operations of all Mitsubishi vehicles in Malaysia in a move to boost sales, a report said today.

The Edge newspaper, citing industry sources, said Mitsubishi was negotiating a "format of collaboration" with DRB-Hicom Bhd, the franchise holder here for Mitsubishi 4WD vehicles through 100 percent subsidiary USF-Hicom (M) Sdn Bhd.

There was a possibility that DRB-Hicom Bhd may take an associate stake in the joint venture, the report said.

"DRB-Hicom will not have the entire Mitsubishi venture, but the group can benefit by having a smaller share of a bigger cake, assuming that sales of Mitsubishi passenger cars expand under the joint venture," a source said.

Strengthen local operations

Sources said Mitsubishi Motors still needed a local partner, DRB-Hicom in this case, to help strengthen its local operations, particularly in obtaining approved permits to import cars.

Industry sources said grabbing a substantial share of the local passenger car market was high on Mitsubishi Motors' priority list, with the introduction of completely built-up models such as the Mitsubishi Gallant, Lancer and Colt next year.

It would be a big comeback for Mitsubishi Motors which has trailed far behind other Japanese makes such as Honda and Toyota in the passenger car segment in Malaysia, The Edge said. - AFP