STUTTGART, Germany--DaimlerChrysler AG said it will end financial support for Mitsubishi Motors, rejecting a $6.4 billion bailout plan Mitsubishi was set to unveil next week. The surprising announcement came after a DCX board meeting Thursday, reported Reuters.

"Together with the major shareholders of the Mitsubishi Group, DaimlerChrysler has tried hard to establish a solid financial structure," said DaimlerChrysler in a statement. "However, it was not possible to find a solution leading to an acceptable result for DaimlerChrysler."

DCX acquired its 37 percent stake in Mitsubishi a few years back as a part of its global expansion plan. The stake may be reclassified as available for sale but DCX hasn't yet decided to find a buyer, said Manfred Gentz, chief financial officer. It will continue some joint vehicle development projects with Mitsubishi, he said.

Mitsubishi is the only loss-making Japanese carmaker, with a debt of billions of dollars. Its reputation was tarnished four years ago when it recalled millions of vehicles because of major defects. The automaker never fully recovered.

It expected to post loss of 72 billion yen (about $659 million) for the year ending March 31, owing to a bad strategy to boost U.S. sales. The company provided financing to customers with subpar credit, many of which defaulted on loans.

News of DaimlerChrysler's sudden decision came as a shock to Mitsubishi Motors' Japanese shareholders. But, according to Reuters, Mitsubishi Corp., Mitsubishi Heavy Industries and Bank of Tokyo-Mitsubishi committed to continuing support the troubled automaker.

The announcement came as good news to DaimlerChrysler investors. DCX shares jumped as much as 9.1 percent Friday after news of the decision, reported Bloomberg. Mitsubishi, on the other hand, saw shares dive by 25 percent--the daily limit--and its credit rating downgraded three levels from B- to CCC- by Standard & Poor's.