DCX Aims to Rescue Mitsubishi Motors

Discussion in 'OT Driven' started by TriShield, Apr 16, 2004.

  1. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    New executive to run carmaker

    [​IMG]

    April 13, 2004

    BY KAE INOUE AND AMKI SHIRAKI
    BLOOMBERG

    DaimlerChrysler AG, which owns 37 percent of Mitsubishi Motors Corp., will buy about $1.43 billion of additional shares in Japan's fourth-largest automaker as early as 2006 to take a majority stake, Mitsubishi executives said.

    Mitsubishi Motors will seek approval at its April 30 shareholders' meeting to issue as many as 5.92 billion new shares, or four times the number now outstanding, said the executives who declined to be named. The shares may be sold to DaimlerChrysler as early as 2006.

    DaimlerChrysler is bringing in a new chief executive, Andreas Renschler of its Smart minicar division, to revive Japan's sole unprofitable automaker under a rescue plan costing about 700 billion yen, or about $6.6 billion, the executives said. Of that amount, DaimlerChrysler will invest 400 billion yen, or $3.8 billion.

    The Tokyo-based carmaker has been hurt by recalls of more than 2 million vehicles, and 2003 U.S. sales fell 26 percent after the company tightened auto loan policies to counter surging defaults.


    DaimlerChrysler, the world's fifth-largest automaker, has previously said it plans to raise its stake in Mitsubishi Motors to more than 50 percent after the Japanese automaker cuts its 1.14-trillion yen debt and return to profitability.

    Mitsubishi group companies plan to invest about 120 billion yen, or $1.13 billion, in Mitsubishi Motors, with 100 billion yen, or $948 million, coming from Mitsubishi Heavy Industries Ltd., Mitsubishi Corp. and Bank of Tokyo-Mitsubishi Ltd., the executives said.

    Other group companies, including Mitsubishi Trust & Bank Corp., Tokio Marine and Fire Insurance Co. and Meiji Yasuda Life Insurance Co., will invest about 20 billion yen, they said.

    Mitsubishi Motors will probably borrow about 150 billion yen, of which no more than 50 billion yen may come from the state-run Development Bank of Japan, the executives said.

    Mitsubishi Motors shares rose as much as 8.7 percent to 350 yen in Tokyo. DaimlerChrysler shares rose 25 cents to $41.38 on the New York Stock Exchange on Monday.

    [​IMG]
     
  2. YelloWRX

    YelloWRX Sonic Yellow...Bitch!

    Joined:
    Mar 11, 2002
    Messages:
    4,937
    Likes Received:
    0
    I dont understand business in Japan. It's like all the car companies are partially owned by a bunch of industrial companies...
     
  3. Yail Bloor

    Yail Bloor OT Supporter

    Joined:
    May 5, 2002
    Messages:
    57,466
    Likes Received:
    7
    Location:
    the streets
    because you have no honor! run onto your sword
     
  4. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

    Joined:
    Oct 26, 2000
    Messages:
    137,235
    Likes Received:
    2
    Location:
    Island of Electronicus
    That's gay. Let them die.
     
  5. KiddX

    KiddX Tigth as Piston In Ferrari Engine!

    Joined:
    Oct 10, 2003
    Messages:
    13,614
    Likes Received:
    0
    Location:
    St. George, Utah
    you know, if they brought down the price of the eclipse by about 5 grand, made it turbocharged, it would sell like mad.
     
  6. Jericho

    Jericho Active Member

    Joined:
    Oct 21, 2002
    Messages:
    34,140
    Likes Received:
    0
    so it's only the motor division of mitsubishi?
     
  7. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    That's what it sounds like.

    Let them die and sell more TVs. :o
     
  8. YelloWRX

    YelloWRX Sonic Yellow...Bitch!

    Joined:
    Mar 11, 2002
    Messages:
    4,937
    Likes Received:
    0

    subsidiary != division.
     
  9. If they anything to the EVO I will kill them.
     
  10. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

    Joined:
    Oct 26, 2000
    Messages:
    137,235
    Likes Received:
    2
    Location:
    Island of Electronicus
    Now would be a good time for Nissan to completely buy out their commercial truck division.
     
  11. aznboi320

    aznboi320 OT Supporter

    Joined:
    Aug 3, 2002
    Messages:
    31,165
    Likes Received:
    11
    Location:
    On a kayak
    but they would have to consult with renault :mamoru:
     
  12. j_woody

    j_woody OT Supporter

    Joined:
    Apr 26, 2002
    Messages:
    2,168
    Likes Received:
    0
    Location:
    seattle, wa
    hopefully they will recall all 7 bolts and fix the god damn crankwalk
     
  13. HisXLNC

    HisXLNC ๑۩۞۩๑ Hot ๑۩۞۩๑

    Joined:
    Oct 26, 2000
    Messages:
    137,235
    Likes Received:
    2
    Location:
    Island of Electronicus

    That's alright. Answering to the French is better than being the Krauts' bitch.
     

Share This Page