Printer Friendly

LEAD: Mitsubishi Motors eyes bigger-than-scheduled capital hike.

TOKYO, March 27 Kyodo

(EDS: UPDATING WITH MORE INFO)

Mitsubishi Motors Corp. and DaimlerChrysler AG are working on a revised restructuring plan featuring a bigger-than-scheduled capital hike for the ailing Japanese automaker, sources familiar with the case said Saturday.

Mitsubishi Motors had earlier planned to raise its capital by 200 billion yen, but the revised restructuring plan is likely to call for raising it to more than 300 billion yen, the sources said.

Mitsubishi Motors and DaimlerChrysler will negotiate with major shareholders in the Mitsubishi group, such as the Bank of Tokyo-Mitsubishi, Mitsubishi Heavy Industries Ltd. and Mitsubishi Corp., on the bigger capital increase, they said.

DaimlerChrysler is the largest shareholder in Mitsubishi Motors, with a stake of 37%.

DaimlerChrysler is compiling a midterm restructuring plan for Mitsubishi Motors and larger-than-expected expenses from new-vehicle development and restructuring efforts have convinced it that a bigger capital increase is necessary, the sources said.

In February, Mitsubishi Motors raised its group net loss estimate to 72 billion yen from an earlier projected 11 billion yen for the business year to March 31 due to a slump in sales in North America and financial woes resulting from loose credit controls at its North American finance unit.

The company is scheduled to announce earnings results for the year as well as a sweeping restructuring plan April 30.

(EDS: UPDATING WITH MORE INFO)

Mitsubishi Motors Corp. and DaimlerChrysler AG are working on a revised restructuring plan featuring a bigger-than-scheduled capital hike for the ailing Japanese automaker, sources familiar with the case said Saturday.

Mitsubishi Motors had earlier planned to raise its capital by 200 billion yen, but the revised restructuring plan is likely to call for raising it to more than 300 billion yen, the sources said.

Mitsubishi Motors and DaimlerChrysler will negotiate with major shareholders in the Mitsubishi group, such as the Bank of Tokyo-Mitsubishi, Mitsubishi Heavy Industries Ltd. and Mitsubishi Corp., on the bigger capital increase, they said.

DaimlerChrysler is the largest shareholder in Mitsubishi Motors, with a stake of 37%.

DaimlerChrysler is compiling a midterm restructuring plan for Mitsubishi Motors and larger-than-expected expenses from new-vehicle development and restructuring efforts have convinced it that a bigger capital increase is necessary, the sources said.

In February, Mitsubishi Motors raised its group net loss estimate to 72 billion yen from an earlier projected 11 billion yen for the business year to March 31 due to a slump in sales in North America and financial woes resulting from loose credit controls at its North American finance unit.

The company is scheduled to announce earnings results for the year as well as a sweeping restructuring plan April 30.
COPYRIGHT 2004 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004 Gale, Cengage Learning. All rights reserved.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Transportation Scan
Geographic Code:4EUGE
Date:Mar 29, 2004
Words:440
Previous Article:Japanese editorial excerpts -4-.
Next Article:Door sensor in fatal accident found to have large blind spot.
Topics:


Related Articles
Mitsubishi Motors sells 7.93% stake in Malaysian automaker Proton.
S&P lowers ratings on Mitsubishi Motors.
Mitsubishi Motors eyes shutting down 1 of 3 assembly plants in Japan.
Mitsubishi Motors eying output of fewer models.
4TH LD: Mitsubishi Motors likely to get 250 bil. yen in support.
5TH LD: DaimlerChrysler to pull out of MMC, undecided on stake.
LEAD: Mitsubishi Motors, Peugeot in talks for tie-up.
Shareholders in final stage of talks on M'bishi Motors' rehab.
LEAD: M'bishi Motors in talks with group firms on rehab.
LEAD: Goldman Sachs becomes biggest M'bishi Motors shareholder.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters