Mitsubishi Motors to Shake-up Japan Productiuon Facilities
TOKYO, Feb 17, 2004; Reuters reported that troubled car maker Mitsubishi Motors Corp plans to close one of its three Japanese plants and may sell its joint ventures in Thailand, Malaysia and the Philippines, among others, a newspaper said on Tuesday.
The Nihon Keizai Shimbun said parent DaimlerChrysler AG, which owns 37 percent of Mitsubishi, would send a new president as early as April, replacing Rolf Eckrodt. A Mitsubishi spokesman said the report was based on speculation.
The paper, Japan's leading business daily, said Mitsubishi planned to close a domestic plant in the next three years and transfer production of Pajero recreational vehicles to China.
The paper on Saturday reported that Mitsubishi may post a group operating loss of about 100 billion yen ($948.3 million) this year, more than double what the firm had projected three months ago, hit by poor sales of new cars in North America.
Mitsubishi has been dogged by financial woes stemming from loose credit controls at its North American finance unit, forcing it to set aside a big extraordinary provision in what was meant to be the final year of three years of restructuring.