Mitsubishi Motors has confirmed that DaimlerChrysler is sending a team from Germany to help prepare a rescue plan for its troubled 37%-owned Japanese partner.

According to Associated Press (AP), Mitsubish said in a statement that Andreas Renschler, president of DaimlerChrysler’s Smart compact car unit, will lead the team, which begins work later this week and will announce a mid-term business plan on April 30.

AP noted that Mitsubishi last week revised its outlook to a loss of 72 billion yen ($US665 million) for the fiscal year ending March 31 – far worse than the loss of 11 billion yen ($102 million) it forecast in November. The sales forecast was also slashed to 2.47 trillion yen ($23 billion) from 2.6 trillion yen ($24 billion), the report added.

AP also noted that there has been growing speculation that Mitsubishi Motors chief executive Rolf Eckrodt may step down to take responsibility for recent problems stemming mainly from losses related to car buyers with bad credit in North America. Eckrodt reportedly said last week he felt responsible for the carmaker’s woes but would leave the decision about his job to shareholders.

Renschler’s name has been mentioned in media reports as a possible candidate to replace Eckrodt, Associated Press said.