The fiscal results were just released by Mitsubishi Motors Corp. It LOST $4.41Billion in the year ended March 31, 2005, including extraordinary items. The ordinarly loss was $1.66 Billion. That's a lot of red ink. Here's the press release:

Mitsubishi Motors consolidated net sales for fiscal 2004 totaled 2,122.6 billion yen, down 396.8 billion yen from the same period last year (2,519.4 billion yen). Higher net sales in Europe over the previous year failed to counter declines in other regional markets including significant declines in Japan and North America.


Mitsubishi Motors posted an operating loss of 128.5 billion yen, 31.6 billion yen worse than for the previous year. Making a positive contribution were cuts in sales incentives and other advertising expenses. lower material and labor costs and the non-recurrence of credit losses from MMC's financial services operations in the United States booked in the previous fiscal year. However, these savings were more than offset by declines in sales volume, primarily in Japan and North America, and from the impact of fluctuations in the model mix.

Mitsubishi Motors posted an ordinary loss of 179.2 billion yen, 68.9 billion yen worse than for the previous year. Factors contributing to the deterioration included the cost of issuing new shares for the capital increase implemented in fiscal 2004, and equity method investment losses stemming mainly from the deterioration in the results of Mitsubishi Fuso Truck & Bus Corporation. Mitsubishi Motors posted a net loss for the term of 474.8 billion yen, 259.4 billion yen worse than for the previous year. The main factors contributing to the deterioration were the booking of extraordinary losses including asset-impairment accounting charges in the U.S. and Australia to alleviate future burdens, losses on the sale and disposal of fixed assets, compensation in connection with the transfer of MFTBC shares, free inspection service campaign costs, provisions for losses on restructuring and of restructuring costs.

 

Wow!!

 

damn.. thats alot of $$$.

 

They lost alot of money

 

hell of alot of money

 

I could live on that for while

 

yeah I read something like they are cuting a lot of the admin salaries and salaries of their big executives have taking major pay cuts.

Hope ya dont have stock in them lol. GM is having similar problems, the market is saturated and highly competative these days. Toyota is killing other companies with their car sales. All these companies keep coming in especially the US and taking bites away from other companies sales.

Just the name of the game, companies will have to downsize and concentrate on flagship cars they have or something. The car industry in my eyes is getting wacked, and the gas prices arent helping them. This is a big economic problem right now, not only the car business but many other manufactoring in the US as well.

 

So you're trying to say another 35k is nothing to them... just write me a check mitsu and I promise to pick up an EVO

but dang thats alot of money

 

so when they pulling out of the car market????? with news like this, what is the actual possibility, sorry but that new ugly eclipse is not going to save them.........

 

I dunno I think that their sales with this car in america are actually pretty decent, I dont have any numbers but i know during 03 the evo was a bomb for sales but 04 and especially 05 the sales for evo's seem fairly decent.

Maybe their release of the new eclipse will do well, well i hope for our sake lol. Looks like a decent car.

 

I'm really not surprised. Most of Mitsu's cars are ugly and dont really offer anything different or exciting. The only mitsus i see regularly are lancers. I think before they really pick up sales, they need to drop the new corporate style.

 

Unfortunately, I think the Evo only sold about 25,000 cars over three years which isn't a very large percentage of total sales. Ford does nearly 1 million F-150's per year. Unless they have a halo car that can sell hundreds of thousands of units at sticker, their financial situation is unlikely to improve IMO.

 

newmr very true... it is a low prodcution car as far as sales like the vet.

 

seriously, has anyone else had their payment plan switched from mitsubishi to a private lender?? My car has never had a late payment in it's life, but one day I got this letter in the mail that my loan was no longer going to be paid back to mitsu, but rather to some other company!!! That's odd to me, especially since the payments are never late for my car. Don't they lose a of $$$ when they sell debt?

 

they sell it for a quick buck (your loan that is)