I thought I should let people know somethings that I found out as I was selling my car. (not meant to panic people but I think you have a right to know)

1: mitsu's values are apparently dropping 100.00 a week due to the fact that Chrysler sold their stake in Mitsu.

2: I was also told by some inside info that mitsu may go the way of daewoo soon and go under. From what I was told the company is going to file for bankruptcy soon within about 6 months. This I was told will take your car and half the value. Kinda sucks because they do make nice products.

Anyway i sold my car last night and got another Mr2 because I think I was more happy with that car than the lancer but I wish everyone on here good luck and if you are in the Pa area, Cooper Nissan in the Lehigh Valley has my car so tell them matt sent you (the previous owner) and you might be able to get a good deal on it. It had 8k miles on it and I probably am going to leave in the JL speakers I had put in (too much of a pain to take out) so someone is getting 500 worth of nice aftermarket speakers with the car and probably won't know it. Factory head unit will go back and my amp goes with me.

good luck to everyone with their car!

here's my new toy : (kinda has a retro roadster look to it with the white and red interior that sold me and it had a cold air intake already in it!)







well good luck everyone and this is Matt signing off...

 

Yeah there is lots of talk about Mitsu going bankrupt. I really don't know what to think or believe about that. All I know is that I love the EVO and even if Mitsu did go under I plan to keep the car for a very long time. I will say one thing if I find out for sure they are going bankrupt, i'm going to get my extended warranty money back that I paid them when I bought the car. Heck I'm pondering the idea already.

 

[QUOTE=raelic]

2: I was also told by some inside info that mitsu may go the way of daewoo soon and go under. From what I was told the company is going to file for bankruptcy soon within about 6 months. This I was told will take your car and half the value. Kinda sucks because they do make nice products.

[QUOTE]


I was told that cows fly but I don't believe it

 

caymandiver: If Mitsu declares bankruptcy, how would you get your money back? By declaring they are pretty much saying they dont have ANY money.

 

I thought the value of the EVO will go up since no more make and model. The warranty of MIT sucks anyway.

 

I bought the extended warranty through the dealer not with Mitsu. The dealer has multiple dealerships, including lexus, toyota, scio, kia, chevy, mazda etc etc

 

.... i would think the value of our cars wouldn't be affected too much, and def not be hurt as much as owners of other models from mitsubishi. There are enough aftermarket parts to keep the evo enthusiast current when they break a part, and frankly, we'd see less evo's around... and i like that idea.

That's a huge "if" though.. there are other posts around here specializing in this topic though.

good luck with your Yota..

(did your inside contact have any information on Smarty Jones too......

 

Actually, declaring bankruptcy might be the best thing could do. Factories, designs, inventory and dealer networks don't evaporate when bankruptcy is declared (although I'm sure some of would argue that some designs and dealers should dissapear). What would dissapear would be the massive, crushing $10,500,000,000 in debt.

Actually, what I read was that the Japanese government is considering a bailout similar to what the US govt did for Chrysler back in the 80s.

 

10 billion dollars debt!!!!!!!!!!!!!!!!????

 

That's right, just because a company declares bankruptcy doesn't mean they stop doing business. When a regular person declares bankruptcy because their credit cards are too much to pay off in this lifetime, do they end their life? No. Mitsu isn't going anywhere, I would just let them deal with their poor financial situation and just enjoy your cars. All anyone here can really do is speculate and that isn't going to save Mitsu or the value of our cars. Did everyone here buy their car to sell it? I bought mine to have fun with it. Even if Mitsu did go out of business, think of all the cars out there with no manufacturing company to support it because they did go under and think of the value some of those bring due to low production numbers. Seems like the same thing with the EVO.

Look at Nissan. Dangerously close to bankruptcy in 1999. Now they turn the highest profits and have the highest growth numbers of any manufacturer. Toyota is growing at 6% and Nissan is growing at 25%. Hell even when the country goes into recession it comes out a little later stronger than it was before. Business is cyclical, up and down. Have patience. There is nothing any of us can do.

 

FYI Bankruptcy does not mean the company has no money. It actually means that the debt load has become unbearable and they cannot continue to pay the interest on their outstanding commerical paper and bonds. Take a look at K-Mart, Worldcom (now MCI again) Global Crossing which all declared bankruptcy within the last 36 months. They basically wiped their slate clean and each re-emerged as a stronger company.

As for the $100 a week additional depreciation, put down the pipe. If anything values for the Mitsubishi performance cars would go up if they weren't currently available. Chrysler HAS NOT yet sold any of its 36% stake in Mitsu Motors but they would like to sell out of the position over time. Since they are not dumping their concentrated position on the open market, as long as there are buyers, no affect on the value of the stock or especially car values.

Good luck with the MR2.

 

Google,

You work in the auto industry? Because I do and generally I don't know anyone who understands the vagaries of automotive finance as well as you apparently do without actually being part of the business. Very few people know the role that commercial paper plays in the automotive industry.

-n.

 

If you're right, I can't wait for the bankruptcy to happen. I'll be able to pick up an MR for $15K

 

n-

I don't work in the automotive industry, just investment banking. Commercial paper is really just any form of leverage (borrowing) with a short duration (under 1 year). Bonds are longer term. In bankruptcy, all debt and leverage is retired at a deeply reduced cost (bondholders receive some money for their holdings, but no more interest) and the equity and stock typically becomes worthless. After the debt is retired and the company is again profitable, they can typically issue stock again and be publically traded again.

 

HAHAHA mitsu go under....not even true....they have new funding from other parts of da mitsu corporation......