MMC's New Plans
Mitsubishi! > News > Japan > Mitsubishi Motors > 2004 > Yoichiro Okazaki Plans New Investments
New Investment Plan After Daimler Quits
April 30, 2004. Tokyo. Yoichiro Okazaki, of Mitsubishi Heavy Industries, as expected was appointed as president, chief executive and chairman of MMC. He has no auto industry experience. At the shareholders' meeting Mr. Okazaki said that Mitsubishi is at a critical juncture and it needs to change its corporate culture in order to survive. [mitsubishisucks.com wonders how can one change the arrogant attitute of senior Mitsubishi execs in a short time.]
Auto Asia reported Okazaki as stating that he wants the automaker to return to the basics of Japanese craftsmanship to regain past glory of MMC. He plans to create a simple, open environment at MMC and a chain of command geared towards swift decision making. Sources report that his focus will be on the USA market and Japan.
May 1, 2004. Nihon Keizai Shimbum, Japan's leading newspaper reported that Yoichiro Okazaki is thinking of scrapping Dailmer's original plan and continue with its Japanese production of Pajero SUV since it represents Mitsubishi Motors "identity," put on hold its original plan to shut down its Australian operations, and instead of withdrawing from the North American markets, "rebuild" it to make it as important as its Japanese market, and he said that it is possible for MMC to develop alliance with other automakers.
May 3, 2004. Seems like DaimlerChrysler is not willing to dilute its 37% stake in MMC. Mitsubishi Motors wants to issue new shares for new investment thus diluting Daimler's controlling interest. Well, well, seems like a messy divorce.
May 12, 2004. Rumors are that Ripplewood Holdings of US, a buyout firm started by Tim Collins in 1995 might be a potential suitor. Earlier Ripplewood has invested in sick companies like Long-Term Credit Bank of Japan, now reborn as Shinsei Bank; and Niles, a auto supplier to Nissan Motors. It also has stake in auto retailer Asbury Automotive Group. Bloomberg reported that Tim Collins in a telephone interview said that his firm will help out Mitsubishi Motors if asked to. Mitsubishi Corp has been an investor in Ripplewood and has helped them in past to get more investors and potential buyout companies. MidOcean Partners, formerly of Deutsche Bank, and in talks with Ripplewood Holdings to merge, might join in too. Reports suggest that Y100B (about 900 million US dollars) is involved. Both Ripplewood and M'bishi denied that any talks are going on.
May 5, 2004. Leaked news from MMC is that it needs about 500 billion yens to revive itself. Besides combined contribution of about 150 billion yen from its three major Mitsubishi group investors - Mitsubishi Heavy Industries, Mitsubishi Corporation and bank of Tokyo-Mitsubishi, it is rumored to be looking at other Mitsubishi group companies besides outside sources. It plans to convince itjunk-quality bonds holders to convert their holdings to equity and so on. It seems like MMC is open to partnerships and Toyota Motors' name is floated in the process. [mitsubishisucks.com wonders why would Toyota get involved in such a mess.]
Previous stories in reverse chronological order (Newer ones first)
MMC Crisis Management Team SelectedMitsubishi Group Shocked by Daimler's Decision
Daimler Chrysler Decides to Quit Mitsubishi Motors' Resue Plan
Daimer and Mitsubishi Motors Planning Rescue Together