Mitsubishi Motors chief executive Mr Rolf Eckrodt resigned yesterday, days after German car giant DaimlerChrysler abandoned its alliance with the troubled Japanese manufacturer.

Its decision to pull the plug on its involvement with Mitsubishi puts DaimlerChrysler's entire global strategy in doubt and adds to pressure on chief executive Mr Jürgen Schrempp to stand down.

He has been behind its worldwide expansion plan, including the merger with troubled US car firm Chrysler in 1999 and the purchase of 37 per cent of Mitsubishi during 2000 and 2001.

The decision also calls into question the firm's ability to make future savings at Chrysler and Smart, which were partly based on cost-sharing with Mitsubishi.

It leaves Mitsubishi desperately seeking support from other major shareholders for a €5.4 billion capital-raising scheme. After that announcement, Mitsubishi Motors' three main Japanese investors - Mitsubishi Heavy Industries, Mitsubishi Corporation and Bank of Tokyo-Mitsubishi - hastily issued a statement vowing continued support for the car firm, saying they would help it craft a new medium-term business plan without DaimlerChrysler.

Speaking to The Irish Times yesterday, Mitsubishi's chief designer, Mr Olivier Boulay, said he was taken by surprise at DaimlerChrysler's decision and that most of its staff in Tokyo was in the dark as to the future plans.

The former designer of the luxury Maybach was sent to work with Mitsubishi in 2001 to develop new models for the Japanese firm. "It's disappointing, given that the new product line on which we've been working for the last three years is due to begin to come onto the road next year. "