More good news...

The Mitsubishi keiretsu is going to increase their allowance to $2.5billion U.S.

http://news.com.au/common/story_page...5E2682,00.html

Things keep looking better and better for .

g

 

Haha, ghetto blasters. Isn't that the truth. I think it's ugly and ridiculous What is it with Mitsu's fascination with that style? First the Endeavor, now the Galant. It started a little with the 3G Eclipse. Chances are that the 4G will continue with it.

 

Are you really suprise? Other then evo would you want to drive anything else they make? They make the ugliest cars Ive ever seen. I remember when nissan was facing his problem.

They did the only thing they could do. The redesign there bread and butter car (altima) and made it into something people wanted to buy. I can think of 6+ nissan cars I wouldnt mind buying. I cant think of any mitsu I'd want to buy other then the evo.

They are going to have to redesign the lancer because that thing is but ugly along with there ugly suv's.

 

I agree with earl lee!!!!! I haven't bought my 2004 Lancer Oz because it looks good (though I really like the interior!) --
I bought it because it was cheap and I knew of Accolades EVO conversion!!!!! So, I thought - I don't have enough money to buy an EVO - so I buy a Lancer OZ and that Accolade EVO conv. with EYE-LIDS!! Now I got to change those ugly 15 Rims, get a Turbo and then I have a complete new car LOL!!!! In addition what they have done with the 2004 Headlights is just *****!!!! But I heared that it is Daimler's fault!!!

 

This from the Associated Press...

TOKYO -- Cash-strapped Japanese automaker Mitsubishi Motors Corp. faced angry questions from shareholders Friday as officials tried to assure them a revival plan was in the works despite partner DaimlerChrysler’s decision to abandon the effort.

Some of the more than 300 shareholders at Mitsubishi’s Tokyo headquarters said they were worried the automaker may collapse. Although challenging questions at Japanese shareholders’ meetings are relatively rare, several shareholders raised doubts about prospects for a comeback and scolded executives they felt had not done enough.

Often raising their voices, they pointed to the surprise decision by the German automaker last week not to give further financial support for Japan’s No. 4 automaker, as well as to the recurring scandals about defect cover-ups that have sent sales plunging and damaged brand image.

“The automaker is on a precipice of crisis,” 71-year-old shareholder Hiroshi Koike said after the meeting. “The big question is how quickly the company can win back trust from consumers.”

Shareholders were voting on two resolutions -- issuing new shares and board appointments -- that had been written before DaimlerChrysler’s decision to pull out of the turnaround plan.

And the disgruntled shareholders wanted an apology and an explanation.

President and chief executive Rolf Eckrodt, who was sent by DaimlerChrsyler in 2001 to lead Mitsubishi Motors, resigned Monday and was not present. Keiichiro Hashimoto, chief financial officer, presided over the meeting.

“We thought we had set the correct direction for revival,” Hashimoto told shareholders. “The decision by DaimlerChrysler came as a shock to our company.”

DaimlerChrysler, the top shareholder with a 37 percent stake, said last week that it had decided against pumping more money into Mitsubishi Motors, dashing hopes that Friday’s meeting would unveil a massive bailout plan.

But the Mitsubishi group companies have promised to stand behind the automaker. Mitsubishi Heavy Industries owns 15 percent of the automaker, trading company Mitsubishi Corp. a 5 percent stake, and Bank of Tokyo-Mitsubishi 3 percent.

Hashimoto said a new plan without DaimlerChrysler cash was being worked out by mid-May. He did not say how much money the Mitsubishi group had promised.

In reply to a shareholder’s question, he denied a report Friday in business daily Nihon Keizai Shimbun that Toyota Motor Corp., Japan’s leading automaker, may provide some financial backing for Mitsubishi Motors.

Mitsubishi Motors is saddled with more than a trillion yen ($10 billion) in debt, plunging car sales both in Japan and North America and a badly tarnished image over a defect scandal that was followed by a spate of recalls four years ago.

It is forecasting a 72 billion yen ($661 million) loss for the fiscal year ended March 31, a reversal from 37 billion yen in profit the previous year.

Police are investigating a suspected defect coverup in the 2002 death of a housewife who was crushed by a wheel falling off a Mitsubishi truck.

At the meeting, shareholders approved the appointment of Yoichiro Okazaki, a director at Mitsubishi Heavy Industries, as president and chief executive to replace Eckrodt.

Okazaki, 61, who has little experience in the auto industry, was nominated chairman in February to head the turnaround team, but assumed all three titles Friday.

“We realize our company is in such serious trouble its very existence is in question,” Okazaki told shareholders. “We must change our corporate culture.”

The appointment of Eckhard Cordes, a senior executive from DaimlerChrysler to the Mitsubishi Motors board, was also approved by shareholders.

DaimlerChrysler has not said what it will do with its 37 percent stake in Mitsubishi Motors, and has indicated that selling the stake is one option. But it has said the two automakers’ joint projects in Chrysler, Smart and other passenger cars will continue.

http://www.detnews.com/2004/autosins...tos-138804.htm

 

See I was right :P

There was never a chance that it was going to go down, and truthfully this restructuring plan was in place before DCAG decided to pull out.

Anyway, that AP article is basically old news now. More hype when the reality is that Mistu will struggle but it is going to be propped up for some time.

 

I'm not sure that the Mitsu keiretsu had a plan in place before DCX decided not to further invest in MMC... but, that's speculation.

That they have elected Eckhard Cordes to the board is good first step to cultural change, and perhaps maintaining relations with DCX to importantly get managerial talent either directly or through scavaging, There will be shake-up in DCX with people leaving in the not to distant future.

The increase of money to $2.5billion U.S. will definitely help MMC, but they need to make an official statement with supporting statistics at the extent of debt plaquing the company... that most recent Detroit News release is the highest total to date... $10billion U.S. and is in stark contrast to the Mitsubishi keiretsu unofficial anouncement.

I'm still intrigued by the rumor mill suggesting a request of assistance from Toyota.

There is a very difficult road ahead for MMC... But, there seems to be some promising changes in addition to maintaining Cordes. That the investors are pissed and want changes is a positive impetus, as is the recognition by Okazaki for cultural change.

Now Okazaki needs to implement it.
g

 

No, I was saying that Mitsu Motors had a restructuring plan ready to go about a month ago.

 

Yeah, I'd say their hope has to lie with the new Eclipse. Hopefully they won't f*** it up like they did the last one. Honestly, if it wasn't for the myth and raw performance surrounding the Evo, I'd have never even dreamed about buying a Mitsu. Already had one bad experience with a mid-90's Diamante, and my brother's ole GF had an 2G Eclipse with suspension issues that Mitsu was never able to fix.

...hmm, maybe I need to start burning incense in my Evo in an effort to appease the car gods and have them smile upon , hehe

 

Perhaps... But I think more importantly, what the plan entails is the bigger question.

What's your thoughts on asking Toyota for help? Rumor? Fact? Negatives? Benefits?

g

 

i think a part of all this is mitsu's attention to target the younger crowd, which backfired on them in a major way

 

The way I read the article it appeared that Mitsu Corp was going to ask Toyota to try to suck up some of the jobs that they will need to get rid of to become profitable. If Toyota has the space it would be good for both sides. It appears to be a rather Japanese way to go about layoffs. This I applaud.

I think that will be about the limit of the transaction. I dont see Toyota getting directly involved in the investment of Mitsu. I dont know if the Japanese government would like that too much.

 

Targeting the younger crowd was actually a great idea... it's a way to secure future sales by introducing and hooking them to a brand and having them buy cars from the brand as they mature.

Hell, that's why Honda is so successful, Toyota is praying to have their Xion brand a success (average age of a Toyota buyer is 37, they need yutes) and Cadillac is still having more customers dying then buying their vehicles... although they're slowly rebuilding a customer base by targeting yuppies as German alternative... and then there's the hip-hop crowd.

The key is, the younger you hook them, the more cars you can sell to them before they die. It's how GM made its fortune.

But, the way Mitsubishi went about it... Well, we all know that was not the best way to go about it.

Ringthree - I agree with the absorbing of workers, but the rumors make it seem that the board is also turning to Toyota for guidance, perhaps investment.

But perhaps I'm reading to much into it... we'll see what actually manifests.

g

 

From the Associated Press.....

STUTTGART, Germany -- Automaker DaimlerChrysler will keep its 37 percent stake in Mitsubishi Motors despite its decision to cut off funding to its troubled Japanese partner, its chief executive said as he reaffirmed Daimler’s goal of a strong presence in Asia.

In a letter to company staff, CEO Juergen Schrempp broadly reasserted his strategy for the German-U.S. automaker after days of turmoil that led to speculation about his position before the supervisory board restated its support for him Thursday.

The decision to cut off Mitsubishi last week “has not altered our strategic goal of establishing firmly our presence in Asia,” Schrempp said in a letter to employees obtained Friday by The Associated Press.

He reiterated that the U.S.-German automaker will continue to work on joint projects involving Mitsubishi and the Chrysler and Smart brands.

“And we will, of course, continue to maintain our holding in Mitsubishi Motors,” he said.

DaimlerChrysler had initially left the future of its Mitsubishi stake unclear. Schrempp said he wrote the letter to address concerns brought up in “extensive media coverage” of the Mitsubishi decision.

“Although we have always stated that we wanted to keep our options open, our decision seems to have surprised many people,” Schrempp wrote.

DaimlerChrysler’s announcement that it would not bail out Mitsubishi followed a meeting of its supervisory board. It raised questions about the future of Schrempp’s strategy of turning DaimlerChrysler into a global auto powerhouse -- and about whether his job might be on the line.

Mitsubishi shareholders, meeting Friday in Tokyo before the letter became public, were baffled and angry at DaimlerChrysler’s decision and worried the company might pull out entirely.

They had expected a massive bailout to be unveiled at the meeting, and executives had little to offer on an alternative plan that Mitsubishi Motors is hammering out with the Mitsubishi group.

Yoichiro Okazaki, a Mitsubishi Heavy Industries director whose nomination as president, chief executive and chairman of the auto group was approved Friday, refused to comment on prospective plant closures, job cuts or financing.

Keiichiro Hashimoto, chief financial officer, told shareholders the company had been caught by surprise.

“The decision by DaimlerChrysler came as a shock to our company,” Hashimoto said. “We thought we had set the correct direction for revival.”

Schrempp’s letter defended the decision, saying company leaders had weighed it carefully.

“The Japanese market is far too important to take such a matter lightly,” Schrempp said.

“Besides which, we also enjoy an excellent working relationship with our partners at Mitsubishi,” he said. “But in the end, we simply couldn’t guarantee that the financial investment required would, in the foreseeable future, result in an acceptable return for our shareholders.”

DaimlerChrysler shares fell 2.5 percent in Frankfurt trading to close at 37.39 euros ($44.66). The company’s U.S.-traded shares fell 60 cents, or 1.3 percent, to close at $44.40 on the New York Stock Exchange.

On the Net:

DaimlerChrysler AG: http://www.daimlerchrysler.com


http://www.detnews.com/2004/autosins...tos-139130.htm

 

An another from the A/P where the new prez says.."The question is how can Mitsubishi Motors hope to survive."

TOKYO - Cash-strapped Japanese automaker Mitsubishi Motors Corp. faced angry questions from shareholders Friday as officials tried to assure them a revival plan was in the works despite partner DaimlerChrysler's decision to abandon the effort.

Some of the more than 300 shareholders at the company's Tokyo headquarters said they were worried that the automaker may collapse. Although challenging questions at Japanese shareholders' meetings are relatively rare, several shareholders raised doubts about prospects for a comeback and scolded executives for not doing enough.

Often raising their voices, they pointed to the surprise decision by the German automaker last week not to give further financial support for Japan's No. 4 automaker, as well as to recurring scandals about defect cover-ups that have sent sales plunging and damaged the company's image.

"The automaker is on a precipice of crisis," 71-year-old shareholder Hiroshi Koike told The Associated Press after the meeting. "The big question is how quickly the company can win back trust from consumers."

The shareholders at the meeting, which was shown to reporters through TV monitors, voted on two resolutions _ issuing new shares and board appointments _ that had been on the agenda before DaimlerChrysler's decision to pull out of the turnaround plan.

And they wanted an apology and an explanation.

President and Chief Executive Rolf Eckrodt, who was sent by DaimlerChrysler in 2001 to lead Mitsubishi Motors, resigned Monday and was not present. Keiichiro Hashimoto, chief financial officer, presided over the meeting.

"We thought we had set the correct direction for revival," Hashimoto told shareholders, adding that a DaimlerChrysler team had arrived in February to hammer out a plan. "The decision by DaimlerChrysler came as a shock to our company."

DaimlerChrysler, the top shareholder with a 37 percent stake, said last week that it had decided against pumping more money into Mitsubishi Motors, dashing hopes that Friday's meeting would unveil a massive bailout plan.

But the Mitsubishi group companies have promised to stand behind the automaker. Mitsubishi Heavy Industries owns 15 percent of the automaker, trading company Mitsubishi Corp. a 5 percent stake, and Bank of Tokyo-Mitsubishi 3 percent.

Hashimoto said a new plan without DaimlerChrysler cash would be worked out by mid-May. He did not say how much money the Mitsubishi group had promised.

In reply to a shareholder's question, he denied a report Friday in the business daily Nihon Keizai Shimbun that Toyota Motor Co.p., Japan's leading automaker, may provide some financial backing for Mitsubishi Motors.

Mitsubishi Motors is saddled with more than a trillion yen (US$10 billion) in debt, plunging car sales both in Japan and North America and a badly tarnished image over a defect cover-up scandal four years ago that was followed by a spate of recalls.

It is forecasting a 72 billion yen ($661 million) loss for the fiscal year ended March 31, a reversal from a 37 billion yen profit the previous year.

Police are investigating a suspected defect cover-up in the 2002 death of a housewife who was crushed by a wheel falling off a Mitsubishi truck. Speculation has been growing that arrests may be imminent.

At the meeting, shareholders approved the appointment of Yoichiro Okazaki, a director at Mitsubishi Heavy Industries, as president and chief executive to replace Eckrodt.

Okazaki, 61, who has little experience in the auto industry, was nominated chairman in February to head the turnaround team, but assumed all three titles Friday. A resolution to issue new shares also passed.

"We realize our company is in such serious trouble its very existence is in question," Okazaki told shareholders. "We must change our corporate culture."

The appointment of Eckhard Cordes, a senior executive from DaimlerChrysler to the Mitsubishi Motors board, was also approved by shareholders, but he was not present.

DaimlerChrysler has not said what it will do with its 37 percent stake in Mitsubishi Motors, though it has indicated that selling the stake is an option. It has said the two automakers' joint projects in Chrysler, Smart and other passenger cars will continue.

Mitsubishi Motors spun off its truck division last year, and analysts say Mitsubishi Fuso Truck & Bus Corp. remains a key part of DaimlerChrysler's ambitions to expand its truck business in Asia's growing market.

At a news conference Friday, Okazaki blamed communications breakdowns for the company's slow response to scandals.

He refused to disclose specifics of any planned job cuts, plant closures or financing, but did not rule out alliances with automakers besides DaimlerChrysler.

"We are not considering one now, but I believe it is a possibility in the future," he said. "The question is how can Mitsubishi Motors hope to survive."

http://www.detnews.com/2004/autosins...tos-139336.htm