Mitsu hire turn around firm to run US operations
Mitsu hire turn around firm to run US operations
From the Car Connection
http://thecarconnection.com/index.as...&sid=173&n=156
Mitsubishi Hires Turnaround Firm for U.S. Arm
Mitsubishi showed Wednesday that it is both desperate and committed to turning around the ailing U.S. unit of the embattled Japanese automaker by hiring AlixPartners to take over management of Mitsubishi’s American operations.
AlixPartners, Southfield, Michigan, is the acknowledged king of the turnaround specialists, having recently worked on Kmart, Champion Homes, and Worldcom. At Mitsubishi, the firm’s managers will swoop in and fill the management void left by recently departed CEO Finbarr O’Neill, as well as the senior marketing and advertising staff. The company has not formally announced the move, and hasn’t yet said how it will affect Rich Gilligan, who took on the CEO title earlier this month.
Mitsubishi’s U.S. sales fell 37.1 percent last year. The outlook for 2005 is bleak as well. Alix has a reputation for fixing companies written off as lost causes.
The hiring of the firm, say sources, was dictated by Phoenix Capital Co., the Japanese turnaround fund that poured money into Mitsubishi last May after DaimlerChrysler backed away from investing more capital. Phoenix now owns 28 percent of Mitsubishi.
A firm like AlixPartners has not been hired before to bail out a car manufacturer, though companies use consultants all the time. This is the first time in memory that a major OEM has turned over its management to such a firm. It’s difficult to see what a bailout firm will do that O’Neill wasn’t on his way to doing — limiting fleet sales, replacing costly rebates with incentives like a longer warranty, and cutting staff. The real point of the firm’s hiring, though, seems to be to stabilize personnel, especially senior management, and stop the revolving door so that any recovery plan can benefit from management continuity. —Jim Burt
http://thecarconnection.com/index.as...&sid=173&n=156
Mitsubishi Hires Turnaround Firm for U.S. Arm
Mitsubishi showed Wednesday that it is both desperate and committed to turning around the ailing U.S. unit of the embattled Japanese automaker by hiring AlixPartners to take over management of Mitsubishi’s American operations.
AlixPartners, Southfield, Michigan, is the acknowledged king of the turnaround specialists, having recently worked on Kmart, Champion Homes, and Worldcom. At Mitsubishi, the firm’s managers will swoop in and fill the management void left by recently departed CEO Finbarr O’Neill, as well as the senior marketing and advertising staff. The company has not formally announced the move, and hasn’t yet said how it will affect Rich Gilligan, who took on the CEO title earlier this month.
Mitsubishi’s U.S. sales fell 37.1 percent last year. The outlook for 2005 is bleak as well. Alix has a reputation for fixing companies written off as lost causes.
The hiring of the firm, say sources, was dictated by Phoenix Capital Co., the Japanese turnaround fund that poured money into Mitsubishi last May after DaimlerChrysler backed away from investing more capital. Phoenix now owns 28 percent of Mitsubishi.
A firm like AlixPartners has not been hired before to bail out a car manufacturer, though companies use consultants all the time. This is the first time in memory that a major OEM has turned over its management to such a firm. It’s difficult to see what a bailout firm will do that O’Neill wasn’t on his way to doing — limiting fleet sales, replacing costly rebates with incentives like a longer warranty, and cutting staff. The real point of the firm’s hiring, though, seems to be to stabilize personnel, especially senior management, and stop the revolving door so that any recovery plan can benefit from management continuity. —Jim Burt
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From: Minnesoter
Originally Posted by ru4real
A turnaround won't happen until 
improves quality and offers attractive, exciting products across the board. They should learn from Nissan and find out where they fit in the market.
improves quality and offers attractive, exciting products across the board. They should learn from Nissan and find out where they fit in the market.