Rumors
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Pre-restructuring Rumors
May 13, 2004. Bloomberg reported that a Mitsubishi executive who declined to be named, said that Mitsubishi Motors is looking for Y450B from its stockholders and corporate turnaround fund Phoenix Capital, a fund set up by two former employees of Bank of Tokyo-Mitsubishi and owned partly by PricewaterhouseCoopers. Yasushi Ando, the CEO of Phoenix Capital worked for Mitsubishi bank while Hisao Tateishi, worked for Bank of Toyko, bfore both merged to become Bank of Tokyo-Mitsubishi. In past Phoenix Capital revived Japan's largest builder Tokyu Construction. Contributions are expected to be 50% from Phoenix and the rest from Mitsubishi group companies. The newswire service also reported that Akira Kijima may become the new president and COO to replace Rolf Eckrodt.
May 15, 2004. Nikkei reported that Mitsubishi Motors will reduce the number of chassis used in its cars from the current 11 to about 5 or 6, and will focus on its Pajero and subcompact lines. Sales worldwide are expected to fall from present 1.5 million units but it plans to expand its joint venture operations in China, doubling its sales to 300,000 units a year within three years. [mitsubishisuck.com vaguely remembers an accident scandal in China a couple of years ago that had resulted in a ban of Mitsubishi exports to China. More on that later.] It expects to be profitable in fiscal 2005. One of Australia's 2 Adelaide plant will be closed down as will the Pajero Manufacturing plant in Japan. Production of Pajero will be moved from there to Aichi prefecture plant. Production in its US Illinois' Normal plant will be scaled down and the auto financing unit will be closed down.
Kyodo News reported that MMC is planning to cut 10 percent of its workforce and closure of one of its plants in Japan, because of lower capacity utilization.
Asahi Shimbun reported that all plans are subject to approval by DailmerChrysler, a majority shareholder in MMC. However it had more details on the proposed restructuring plan. Seems like Phoenix Capital will invest 200 billion yens through common stocks to acquire a 40% stake in M'bishi Motors. (Mitsubishi group companies will invest 250 billion yen in form of preferred stocks.) Phoenix Capital will team up with J.P. Morgan to raise the fund. Pajero and Lancer models wil continue, and as a measure to save costs, the headquarter might be moved from Tokyo to either Kyoto or Okazaki.
Previous stories in reverse chronological order (Newer ones first)
Investment Amount, Models SlashedMMC Crisis Management Team Selected
Mitsubishi Group Shocked by Daimler's Decision
Daimler Chrysler Decides to Quit Mitsubishi Motors' Resue Plan
Daimer and Mitsubishi Motors Planning Rescue Together