DaimlerChrysler to quit Mitsubishi - OH SNAP!

Discussion in 'OT Driven' started by mucky, Apr 23, 2004.

  1. mucky

    mucky .

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    http://www.autonews.com/

    Full article requires registration :sad2:, but Mitsubishi Motor's future looks ugly now. :eek4:
     
  2. WS6Formula350

    WS6Formula350 molestache amririte?

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    Copy and paste the article
     
  3. mucky

    mucky .

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    Unless someone has a subscription, gotta wait for a few days until autonews releases the full article free.
     
  4. Laserbeak

    Laserbeak Remember kids! Be like Billy! BEHAVE YOURSELVES!

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    Source: http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=4915794

    UPDATE 3-DaimlerChrysler to quit Mitsubishi Motors
    Thu Apr 22, 2004 08:57 PM ET
    (Adds Mitsubishi trade suspension, details, changes dateline)

    By Alexander Huebner and Chang-Ran Kim

    STUTTGART/TOKYO, April 23 (Reuters) - DaimlerChrysler AG (DCXGn.DE: Quote, Profile, Research) said it will pull out of Mitsubishi Motors, leaving the German-American company's bid to become a global car maker in disarray and throwing the future of the Japanese firm into doubt.

    DaimlerChyrsler said on Thursday it would not participate in a rescue capital increase planned by Mitsubishi Motors Corp (7211.T: Quote, Profile, Research) because it could not agree an acceptable deal with other shareholders in the Mitsubishi group.

    It also said it would not provide any further financial support to Mitsubishi, Japan's only unprofitable carmaker.

    "This clearly means separation," a DaimlerChrysler spokesman said, adding that the 37 percent stake would be booked as discontinued business until a buyer could be found.

    The decision came at an extraordinary meeting of the DaimlerChrysler supervisory and management boards on Thursday and just two weeks after Chief Executive Juergen Schrempp defended his global strategy in front of angry shareholders.

    Mitsubishi, Japan's fourth-largest carmaker, had been widely expected to seek shareholder approval on April 30 for a 700 billion yen ($6.39 billion) bail-out.

    Sources and media had said that more than half of that would come from DaimlerChrysler, while Mitsubishi Corp (8058.T: Quote, Profile, Research) , Mitsubishi Heavy Industries Ltd (7011.T: Quote, Profile, Research) , Bank of Tokyo-Mitsubishi (8306.T: Quote, Profile, Research) and other Mitsubishi group firms were expected to provide more than 100 billion yen.

    Mitsubishi Motors said it was evaluating the situation and would make further announcements later.

    However, Japan's Kyodo news agency quoted a top Mitsubishi group official as saying the group would continue to support Mitsubishi Motors even without the help of DaimlerChrysler.

    "The move will leave Mitsubishi Motors with no choice but to shrink their business operations," said Hajime Yagi, general manager at Meiji Dresdner Asset Management in Tokyo.

    The Tokyo Stock Exchange suspended trading in Mitsubishi Motors' shares after the news.

    The euro hit a one-month high against the yen in what dealers said could signal a dumping of the Japanese currency as worries about Mitsubishi Motors' fate surfaced.

    EASY LOANS

    Reeling from losses on easy-term car loans in the United States, the maker of the Pajero sport utility vehicle is expecting a net loss of 72 billion yen for the 12 months to March 31. It had a profit of 37.36 billion yen the previous year.

    Mitsubishi Motors' net automotive debt stood at around 726 billion yen six months ago, while total interest-bearing debt was 1.141 trillion yen.

    "This could be the end for Mitsubishi if nobody else injects fresh capital," said one industry source.

    DaimlerChrysler bought the stake in Mitsubishi over three years ago with a view to expanding in Asia, and the decision to cut its losses will intensify pressure on Schrempp, who faced calls to resign at the annual shareholder meeting on April 7.

    David Healy, an auto industry analyst with U.S-based Burnham Securities, said that in "pulling the plug" on Mitsubishi it looked as if group board members had "finally rebelled against Schrempp's pouring money down that financial black hole."

    Schrempp, who has presided over the loss of some 37 billion euros in market capitalisation since Daimler merged with Chrysler in 1998, will provide further details of the strategic U-turn in a teleconference at around 0900 GMT on Friday.

    Unwinding the Mitsubishi investment will also have significant repercussions for Chrysler, the group's other problem child. Chrysler and Mitsubishi have established close production ties in a bid to cut costs.

    The major unanswered question, Burnham's Healy said, was whether DaimlerChrysler had made alternate plans for new cars that Chrysler and Mitsubish were due to develop jointly.

    "It really depends on whether Mitsubishi Motors survives in its present form without the financial backing of its largest shareholder. The Chrysler Group and Mitsubishi have been co-developing new platforms and that's a very important part of the small and intermediate passenger car programme for Chrysler."

    Chrysler spokesmen were not available for comment.

    Shares in Mitsubishi Heavy, which owns 14.8 percent of Mitsubishi Motors, were down four percent in early morning trade. Mitsubishi Corp was down 4.8 percent and Mitsubishi Tokyo Financial Group was down 0.98 percent.

    Tokyo's main Nikkei average was up 0.77 percent.

    (Additional reporting by David Crossland in Berlin, Tom Brown in Detroit) ($1=.8424 Euro)

    ($1=109.58 Yen)
     
  5. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

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    Sweetness. :cool:

    Time for Nissault to buy the rest of the company out.
     
  6. TriShield

    TriShield Super Moderator® Super Moderator

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    Mitsubishi Motors = the next Oldsmobile
     
  7. Laserbeak

    Laserbeak Remember kids! Be like Billy! BEHAVE YOURSELVES!

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    Cliffs Notes: No soup for Mitsubishi.
     
  8. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

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    Nissan would be interested in buying part of Mitsubishi.

    Nissan already sells a rebaged version of one of their small vans and one of thier subcompacts.
     
  9. Sonic

    Sonic Live every day to the fullest, for yesterday is go

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    I say someone buys the Evo off of them, then deep 6 the rest of that turd company.
     
  10. RDB

    RDB Blinded By Subpar Modulators

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    ah shit :wtc:
     
  11. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

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    Nissan can buy the Evo. :bowdown:
     
  12. RDB

    RDB Blinded By Subpar Modulators

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    and everyone can watch in horror as they take the turbo off, because their company is to lazy to engineer a smog solution anymore...
     
  13. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

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    Fuck the turbo and drop a VQ in that biatch. :bowdown:
     
  14. LIQUID

    LIQUID #HarambeBless

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  15. Douchemark

    Douchemark Guest

    They jumped the shark when they designed the butt ugly EVO VIII
     
  16. 7

    7 First comes smiles, then lies. Last is gunfire.

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    True but why would anyone want to be involved in the train-wreck that is mitsubishi?
     
  17. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

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    I bet someone at Subaru just uncorked a big ass bottle of Crystal.

    Nerrbody at Subaru gettin tipss.
     
  18. lograyutre

    lograyutre New Member

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    IB Subaru buys the Evo :rofl:
     
  19. Dr.Smasher

    Dr.Smasher .

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    Yeah, all those ugly pieces of shit they released in the last few years haven't really helped them

    I'm looking at you, 3rd gen Eclipse and Outlander.
     
  20. RDB

    RDB Blinded By Subpar Modulators

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    why when the mitsu 3.5/3.8 is better. it sure as hell owned all the nissans on the dakar...
     
  21. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

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    Aside from their rather shitty cars, Mitsubishi makes awesome commercial trucks. They are Nissan's biggest rival in the commercial truck market.
     
  22. RDB

    RDB Blinded By Subpar Modulators

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    sadly i believe the 3rd gen eclipse is there best selling model evar :o
     
  23. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

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    It can win Dakar, but it's shit for everything else. Nissan has V6s on lock down.
     
  24. mucky

    mucky .

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    Thanks to fleet sales :o
     
  25. RDB

    RDB Blinded By Subpar Modulators

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    :enterprise: :ugh:

    isn;t the base model lancer #2 for them because of enterprise :o
     

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