Leaked News
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Leaked Restructuring News
May 20, 2004. Australian workers have been briefed and no surprises there.
May 20. Bloomberg reported that Koji Furukawa, a Mitsubishi Corp vice president, will become the vice chairman at MMC. As earlier reported, Hideyasu Tagaya, will be appointed as the president and COO. Yoichiro Okazaki will remain the chairman. Headquarters will be moved to Kyoto within two years, reducing staff count in Tokyo by 1,400 to just 100. Number of model will be reduced from 33 to 20. Diamante line will be discontinued. J.P. Morgan will invest unspecified amount in Mitsubishi's preferred shares.
Earlier The Advertiser in Australia reported that according to its sources, assemply plant employing 2700 has been saved to prove its worth, while the engine plane employing 750 will have to go within 2 years.
May 19, 2004. Nippon Yusen and Mitsubishi Electric, both Mitsubishi group companies, have been already approached by Mitsubishi Motors for some financial support. Mitsubishi Electric, which is a major electrical equipment supplier to Mitsubishi Motors, announced that it is willing to support MMC, provided the revival plan is sound. Tamotsu Nomakuchi, Mitsubishi Electric's president said that they want to help because MMC is an important customer, buying about 20% of its output. Other Mitsubishi group companies tapped for financial assistance include Kirin Brewery and Tokio Marine and Fire Insurance. In other news, Bloomberg reported that in the long-run, both the Australian plants, and not just one, might cease operations.
May 18, 2004. Yoichiro Okazaki has earlier said that he and CFO Keiichiro Hashimoto would release the plans with the company's financial results 4.30pm Tokyo time. A press conference will be held after that. That would be around early morning (2:30AM+) US Central time.
Reuters reported that Bank of Tokyo-Mitsubishi and Mitsubishi Trust and Banking will swap 90 and 40 billion yens respectively of debt that MMC owns them, into equity, as early as Wednesday.
Previous stories in reverse chronological order (Newer ones first)
Kabushiki Ombudsman Group Plans to Sue Mitsubishi Heavy IndustriesRumors of MMC's Rescue Plan
Investment Amount, Models Slashed
MMC Crisis Management Team Selected
Mitsubishi Group Shocked by Daimler's Decision