Daimler-Benz Not Done Yet

Nissan Motor Co. confirmed Monday it is negotiating with Daimler-Benz about a possible alliance, but said no decision has been made on whether the German automaker would buy its truck unit.

Japanese media had reported Sunday that the maker of Mercedes-Benz luxury cars which announced a merger with Chrysler Corp. last week was in talks to buy a controlling stake in Nissan Diesel Motor Co.

Nissan said in a statement Monday that it had been negotiating with Daimler for months about cooperating in production, sales and development of commercial vehicles and parts.

Although the automakers remain silent on reports that Daimler is seeking to buy Nissan Diesel, the mass-circulation Mainichi Shimbun newspaper reported Monday that Nissan has already issued conditions for the deal, including cooperation on aerospace development and help expanding Nissan's European sales.

A Nissan spokesman, speaking on condition of anonymity, confirmed that Daimler's cooperation in boosting European sales was being discussed, but refused to say whether aerospace cooperation was part of the talks.

Nissan Diesel is struggling with poor earnings in the wake of the Asian economic crisis and weakening sales at home. Nissan Motor, Japan's second-largest automaker, reportedly wants to sell most of its 39 percent share in the troubled truck manufacturing unit.

The acquisition would help Daimler strengthen its Asian operations.

Toyo Keizai, a financial information provider, forecast Nissan Diesel will post a net loss of $15 million for the fiscal year ending March 1999.

AP