Finally Mitsu Motors falls.
04-22-04, 10:53 PM
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Finally Mitsu Motors falls.
http://www.detnews.com/2004/autosins...4/23/index.htm
Damn I really like the Evo
Friday, April 23, 2004
DaimlerChrysler won't bail out struggling Mitsubishi
DaimlerChrysler boards reject raising firm's 37% stake in Japanese automaker
By Brett Clanton / The Detroit News
DaimlerChrysler AG will not invest more money in Mitsubishi Motors Corp., ending speculation that the German automaker would bail out the troubled Japanese company.
The move raises questions about the future of DaimlerChrysler CEO Juergen Schrempp’s vision for a global auto empire.
Mitsubishi’s failure to “establish a solid financial structure” kept DaimlerChrysler from raising its 37 percent stake, DaimlerChrysler said in a statement released Thursday after the decision was made by its management and supervisory boards.
Reports this month suggested that the German company would invest about $3.8 billion in Mitsubishi and increase its ownership stake to 50 percent.
Last week, Mitsubishi, which has about $9 billion in debt, said it would raise cash by issuing new shares and appoint a DaimlerChrysler executive as part of a turnaround plan.
The German automaker was expected to appoint Andreas Renschler, head of its smart brand, to lead Mitsubishi after he helped craft the recovery strategy, set to be presented to shareholders April 30.
DaimlerChrysler said Thursday it has “decided not to participate in a capital increase” and will “cease further financial support for (Mitsubishi).”
The future of DaimlerChrysler’s controlling stake in Mitsubishi is not clear. Officials of both companies in Germany and Japan could not be reached for comment.
The pull-back at Mitsubishi could impact DaimlerChrysler’s Chrysler unit, which is jointly developing products with Mitsubishi.
“It’s just too early to tell,” said Chrysler spokesman Jason Vines.
Mitsubishi’s been battered by falling U.S. sales and quality problems in Japan that have led to steep losses. The red ink helped cut DaimlerChrysler’s profits by $360 million in 2003.
DaimlerChrysler paid about $2 billion for its stake in Mitsubishi in 2000 for a presence in the growing Asian auto market after buying Chrysler in 1998 to expand its U.S. reach.
With both companies struggling, Schrempp has been criticized for taking on too much too fast in his haste to establish a global auto company.
DaimlerChrysler won't bail out struggling Mitsubishi
DaimlerChrysler boards reject raising firm's 37% stake in Japanese automaker
By Brett Clanton / The Detroit News
DaimlerChrysler AG will not invest more money in Mitsubishi Motors Corp., ending speculation that the German automaker would bail out the troubled Japanese company.
The move raises questions about the future of DaimlerChrysler CEO Juergen Schrempp’s vision for a global auto empire.
Mitsubishi’s failure to “establish a solid financial structure” kept DaimlerChrysler from raising its 37 percent stake, DaimlerChrysler said in a statement released Thursday after the decision was made by its management and supervisory boards.
Reports this month suggested that the German company would invest about $3.8 billion in Mitsubishi and increase its ownership stake to 50 percent.
Last week, Mitsubishi, which has about $9 billion in debt, said it would raise cash by issuing new shares and appoint a DaimlerChrysler executive as part of a turnaround plan.
The German automaker was expected to appoint Andreas Renschler, head of its smart brand, to lead Mitsubishi after he helped craft the recovery strategy, set to be presented to shareholders April 30.
DaimlerChrysler said Thursday it has “decided not to participate in a capital increase” and will “cease further financial support for (Mitsubishi).”
The future of DaimlerChrysler’s controlling stake in Mitsubishi is not clear. Officials of both companies in Germany and Japan could not be reached for comment.
The pull-back at Mitsubishi could impact DaimlerChrysler’s Chrysler unit, which is jointly developing products with Mitsubishi.
“It’s just too early to tell,” said Chrysler spokesman Jason Vines.
Mitsubishi’s been battered by falling U.S. sales and quality problems in Japan that have led to steep losses. The red ink helped cut DaimlerChrysler’s profits by $360 million in 2003.
DaimlerChrysler paid about $2 billion for its stake in Mitsubishi in 2000 for a presence in the growing Asian auto market after buying Chrysler in 1998 to expand its U.S. reach.
With both companies struggling, Schrempp has been criticized for taking on too much too fast in his haste to establish a global auto company.
Mitsubishi went overboard playing the incentives game. Strike one.
They dumped loads of cars into fleets, 42% of their sales to be exact, yet Mitsubishi continued its sales decline. Strike two.
The Koreans stopped building K-Mart bluelight special cars. Strike three.
Their sales have dropped like 20%, with a very fresh lineup.
They dumped loads of cars into fleets, 42% of their sales to be exact, yet Mitsubishi continued its sales decline. Strike two.
The Koreans stopped building K-Mart bluelight special cars. Strike three.
Their sales have dropped like 20%, with a very fresh lineup.
Last edited by LexusLuver; 04-22-04 at 10:54 PM.
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