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TOKYO, Sept 20 (Reuters) - Mitsubishi Motors Corp , Japan's fourth-largest automaker, said on Friday it expected its group interest-bearing debt to be reduced to 870 billion yen ($7.16 billion) by March after splitting off its truck business.
That compares with a previous target of 1.2 trillion yen and an actual 1.3 trillion yen at the end of last March.
The Japanese automaker announced earlier that it would split off its truck business into a separate company and that partner DaimlerChrysler AG would take a 43 percent stake in the new unit.
Other Mitsubishi group firms will hold 15 percent.
A Mitsubishi spokesman told reporters that about 210 billion yen of its current group interest-bearing debt would be transferred to the new company.
Another 120 billion yen of debt will be cut with funds from the purchase of 58 percent of the new company by DaimlerChrysler and other Mitsubishi group firms.
Prior to the announcement, Mitsubishi's shares ended down 3.62 percent at 266 yen, in line with broad falls in the auto sector. ($1=121.46 yen)