D-Sourced

Mitsubishi Motors Corp. decides it now will not use a new D-segment platform it co-developed with Chrysler Group.

The Japanese auto maker says it plans to continue to use the smaller C-segment platform, but will forgo development of D-segment products.

“We recently decided to cancel the D portion and develop derivative products off the C-segment on our own,” a Mitsubishi spokesman tells Reuters.

The ailing Japanese auto maker recently announced yet another restructuring plan, calling for a reduction in the number of total models in fiscal 2007, from 26 to 24.

Mitsubishi and Chrysler worked together on developing the C- and D-segment platforms as part of their equity relationship, which has since seen DaimlerChrysler AG's stake in Mitsubishi slashed from 37% to 21%. The current C-platform cars include the Dodge Neon and Mitsubishi Lancer; D-segment includes the Chrysler Sebring and Mitsubishi Galant and Eclipse.

A Chrysler spokesman tells Ward's he expects struggling Mitsubishi to maintain its commitment to projects already under way, including the Global Engine Alliance LLC engine manufacturing pact, as well as sourcing the Mitsubishi Raider pickup truck from Chrysler's Warren, MI, truck plant and plans to use the C-segment platform for future Mitsubishi products.

A source within Chrysler tells Ward's there was little surprise at Mitsubishi's final decision to kill their D-segment plans.

“We knew they were looking at this for several months now. We, frankly, saw this coming,” the source says.

The source adds there are no plans for parent DC to force its Mercedes-Benz or Smart units to use the D-segment platform for their own vehicles.