Mitsubishi Motors Corp. has announced plans to eliminate 1,000 administrative jobs and cut costs by making purchases with its new ally DaimlerChrysler.

Mitsubishi said Wednesday it will slash its administrative staff by 10 percent to 8,900 by April 2004 from 9,900.

Mitsubishi Motors president Katsuhiko Kawasoe said he expects to announce a cost-cutting plan for its operations in Australia in the next several days that may include closing the company's production facilities in Adelaide.

He said the company needs to cut back operations there and reduce the work force, although he hoped to keep the plant open.

Kawasoe also told reporters that Mitsubishi and DaimlerChrysler will jointly develop a compact car called the "Z car" for the world market in the next four years.