Mitsubishi Buys 11.75M Preferred Shares in Isuzu Motors to Strengthen Partnership in Thailand

TOKYO November 17, 2004; The AP reported that a major Japanese trading company is investing in Isuzu Motors Ltd., a truckmaker allied with General Motors Corp. of the United States, to strengthen a partnership in Thailand.

Mitsubishi Corp. said Thursday that it was still undecided about whether or when the 11.75 million preferred shares, valued at 9.4 billion yen (US$90 million; euro69.09 million), it is buying in the Tokyo-based manufacturer will be changed into ordinary shares.

The Tokyo-based company refused to say how much it was paying for the shares. Mitsubishi Corp. now owns 0.3 percent of Isuzu, which is 10 percent owned by General Motors.

Mitsubishi said it was approached by Isuzu with the deal and agreed because it wanted to help stabilize a partner's operations.

After several years of deep losses, Isuzu has been struggling to make a turnaround by reducing jobs and cutting back on projects. Isuzu had no immediate comment.

The Nihon Keizai Shimbun reported Thursday Mitsubishi plans to convert some of the preferred shares, leaving the U.S. automaker as top shareholder. But Mitsubishi denied the report as speculative.

Mitsubishi has worked with Isuzu in Thailand selling Isuzu pickup trucks.