Shock Mitsubishi
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Mitsubishi Shocked
April 23. Mitsubishi Motors, Japan announced on its website that Mitsubishi Motors Corporation (MMC), Mitsubishi Heavy Industries, Mitsubishi Corporation, and Bank of Tokyo-Mitsubishi will draw up a mid-term business plan under Yoichiro Okazaki, Managing Director at Mitsubishi Heavy Industries. Sources indicate that he will be appointed the chairman of MMC on April 30.
David Ibison of Financial Times reported that local television stations in Japan are offering continuous coverage of this story of Daimler breaking up with Mitsubishi under a breaking news banner. He also reported that bureaucrats in the trade ministry were reported to be shouting at each other for the latest information and Transport Minister Nobuteru Ishihara seemed to be quite concerned about MMC's survival. Rumors that that other japanese corporation, First Automotive Works of China, Hyundai of South Korea might be approached to buy out Daimler's 37% share.
April 26, 2004. Jürgen E. Schrempp, the current CEO and architect of DaimlerChrysler's failed World Inc strategy, will resign, most likely NOW. Hilmar Kopper, current Chairman of DC and a former chairman of Deutsche Bank, who was a firm supporter of Jurgen "Rambo" Schrempp, too should be stepping down soon later this year. More heads will roll and a new management will be installed on April 30.
Australia's plant is in greater danger of being shut down, followed by reduction in workforce at Normal, Illnois. Our hearts go out to the workers and their supervisors who face uncertain future, while Schrempp and other top executives depart with multi-million dollar severance packages.
MMC will drastically cut down its production and will emphasize it marketing more on the Asian market and on niche youth markets. I don't count much on it getting large enough help from other Mitsubishi group companies to survive as a large multinational automobile manufacturer. Among its auto models, Galant has the best chance of continuing followed by new Magna, Endeavor, Lancer Evolution and Eclipse Spyder.
Previous stories in reverse chronological order (Newer ones first)
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