A few notes, 1. I stand corrected on stock 2G Eclipses getting crank walk, but I do agree the issue as over blown.

2. The 7G Celica's future is not in doubt, there is no proof to the rumor. It was being outsold by the 3G Eclipse, that much is true, but for its fifth year it is still selling well, it will be around for 2005 with a possible redesign for 2006 and almost definitely by 2007.

3. I COMPLETELY agree with you on the Evo, it is a big time money maker, but I have already spent pages trying to convience people of that. And also about the Mitsu deal.

 

Report: Mitsubishi bailout cost could double
Reuters / May 05, 2004

TOKYO -- A revival plan for Mitsubishi Motors Corp. may cost as much as $4.6 billion, double initial estimates, and involve seeking fresh funds from institutional investors, a Japanese newspaper reported on Wednesday.

Mitsubishi, Japan's fourth-largest automaker, is mired in losses and debt and is under pressure to come up with a restructuring plan after top shareholder DaimlerChrysler pulled out of a multi-billion dollar bailout plan last month.

The new plan would cost as much as 400 billion to 500 billion yen ($3.7 billion to $4.6 billion), compared with initial expectations of around 250 billion yen, and might include a debt-for-equity swap and approaching institutional investors for additional funding, sources close to the situation told the Asahi Shimbun.

It added that the plan would be coordinated with other Mitsubishi firms -- Mitsubishi Heavy Industries, Mitsubishi Corp., and Bank of Tokyo-Mitsubishi and others this week.

Officials at Mitsubishi were unavailable for comment.

Mitsubishi has yet to recover from a recall scandal four years ago that exposed its decades-long practice of illegally hiding customer complaints, and it faces similar allegations over a design defect in trucks that were involved in accidents, including one that killed a woman two years ago.

The company owes about $10.4 billion in interest-bearing debt and is expected to post a loss of 72 billion yen for the year to March 31 after an easy credit policy in the United States backfired.

Company officials have said details of the new business plan would be announced by the end of May.

Japanese stock markets were closed on Wednesday for the Golden Week holidays.

 

not a problem

 

Mitsubishi Motors Raided by Police on Truck Accident
Tokyo May 6, 2004; Bloomberg reported that Mitsubishi Motors Corp. and affiliate Mitsubishi Fuso Truck & Bus Corp. were raided by police investigating whether the automakers falsified reports on faults blamed for 50 accidents and one death, police said. Mitsubishi Motors stock fell 7 percent.

The raid on the companies' head offices in Tokyo was part of a probe into possible false reports to the transport ministry about design flaws in the wheel hubs of Fuso trucks and buses, the Kanagawa police said.

The raid is the latest sign Japan's fourth-largest carmaker, 37 percent owned by DaimlerChrysler AG, failed to improve quality procedures after the discovery of 20 years of hidden customer complaints prompted a 2 million vehicle recall in 2000 and 2001. DaimlerChrysler, which has refused to spend more on Mitsubishi Motors, raised its stake in Fuso to 65 percent in March.

``This raises fresh safety and quality concerns at Mitsubishi Motors,'' said Yasuhiro Matsumoto, a credit analyst at BNP Paribas Securities (Japan) Ltd. in Tokyo. ``The bad image may be passed on to Mitsubishi Motors,'' because the problems arose while Fuso was still part of the automaker and the two companies still share the Mitsubishi brand.

Shares of Mitsubishi Motors fell as low as 254 yen and traded at 257 yen as of 1:14 p.m. in Tokyo. Shares of Fuso, which separated from Mitsubishi Motors in January 2003, aren't publicly traded.

 

Police arrest 7 former Mitsubishi executives

Reuters / May 06, 2004

TOKYO (Reuters) -- Japanese police on Thursday arrested seven former Mitsubishi Motors Corp. executives suspected of professional negligence and falsifying reports about a faulty truck hub blamed for one death and dozens of accidents, media said.

Mitsubishi Fuso Truck & Bus Corp, an unlisted truckmaker owned 65 percent by DaimlerChrysler AG and 20 percent by Mitsubishi Motors, admitted in March that a design defect had been responsible for more than 50 truck accidents since 1992 and recalled 112,000 trucks in Japan.

Until then, it had blamed improper maintenance by users for the wheel hub problems.

The case comes at a bad time for Mitsubishi Motors, which is struggling to revive itself after its biggest shareholder, DaimlerChrysler, refused to offer it further financial support.

The incident is also expected to damage Mitsubishi's brand image, already tainted by a similar recall scandal four years ago when an insider's tip revealed the automaker had been hiding customer complaints illegally for more than two decades.

Mitsubishi Motors eventually recalled more than 2 million vehicles and was fined $36,790, the maximum penalty available.

A spokesman at the Kanagawa prefectural police confirmed the arrest of seven former executives but declined to identify them or say why they were being held. Local media said former Fuso chairman Takashi Usami, who resigned last month, was among the seven.

A spokesman for DaimlerChrysler said no current or former DaimlerChrysler employees were among those arrested. Mitsubishi Fuso's current CEO is Wilfried Porth, a former DaimlerChrysler executive.

DaimlerChrysler has spent about $1.26 billion for its controlling stake in Mitsubishi Fuso, which was formed from the spinoff of Mitsubishi Motors' truck and bus operations in March 2003. Daimler bought a 43 percent stake at that time and another 22 percent earlier this year.

The profitable Japanese truckmaker remains a key part of DaimlerChrysler's Asian strategy, despite the German automaker's retreat from Mitsubishi Motors.

"EXTREMELY EVIL"

Japan's Transport Ministry separately filed a criminal complaint with the police against Mitsubishi Motors and five former and current executives involved in the incident for falsifying reports.

"It is truly regrettable that Mitsubishi Motors has committed the same crime despite having been prosecuted and punished in 2000 for filing false reports," Land and Transport Minister Nobuteru Ishihara said in a statement.

"They falsified the reports to escape recalling the vehicles, and that is an extremely evil act," he added.

Police raided Fuso's headquarters in connection with the accident in 2002 that killed a woman and injured her two sons. The three were hit by a wheel that came loose from a Fuso truck.

"We deeply regret this third search, (but) we are fully cooperating with the investigations," Fuso said in a statement.

The company declined further comment, but a spokesman said Fuso Chairman Michio Hori and Mitsubishi Motors Chairman and President Yoichiro Okazaki would hold a news conference to brief on the arrests and related matters.

Kyodo news agency said police also planned to file criminal charges against Mitsubishi Motors on suspicion of failing to carry out adequate safety measures to prevent the fatal accident.

 

Dude, whatever, I was just incorrect on one small thing, and I admitted I was wrong. You were completely wrong on what the article was talking about and never admitted it.

You are a tool, begone.

 

Japan being a place of such promoted honor has always made me laugh.. More like the complete opposite.. Land of the risign greed.

 

Uhh???

I think America has had it's fair share of market corruption as well.

 

True.. True.. Every culture has it's goods and bads.

 

There truly seems to be a corporate culture problem at . The fact that is a large Keiritsu probably compounded this problem.
I really hope that the company can redeem itself and build an open, bottom-up and transparent internal communication system. It would help speed up decision-making, improve product development, and prevent the illegal behavior witnessed in 2000 and 2003. Transparency, combined with consumer oriented R&D practices, would also help re-build public trust.
IMHO, 's main problem is not product , design, or quality/reliabilty. The problem is consumer perception of the brand. That perception is poor in Japan and tainted in the U.S. The only bright spot is Europe. also did well in China (but hey, who DIDN'T do well in China...), but failed to improve its position in the rest of Asia.

 

What bugs me is that now that the automotive press smells blood, no matter what happens at Mitsu, it is front page news, while other snafus in the auto industry go through with nary a wimper. And how everything has its spin on it.

Every Automotive News article says "the only unprofitable Japanese automaker" in place of just the single word Mitsubishi. Like Suzuki and Isuzu are rolling in the green/black.

How Nissan can recall thousands of VQ powered cars and it only get mentioned once in a tiny paragraph on the back page, but the recall scandal from four years ago is still a newsflash. How Honda can do everything to avoid a recall with their technical service bulletins that describe possible problems, yet many last gen Accord owners report electrical and transmission issues, but NO recall.

How the new Galant finsihed third on the J.D. Power Initial Quality survey, how great a value it is, but C&D can only describe it as cheap feeling and acceptably ugly.

It is just en vogue for the autmotive press to down Mitsubishi(s.)

 

The PR image of Mitsu is being mucked up really bad. Damage control is needed now, pronto.

Honda = media darlings.

 

Here's a pretty good (i.e. objective) analysis of Mitsu's corporate culture problem.

http://www.atimes.com/atimes/Japan/FE11Dh02.html

Mitsu has had an image problem in the U.S. since the get go. First they were "cheap" Dodge imports (even though they were reliable and a good number of them still roam the streets today), then there was the sex harrassment suit, the the 2000 recall, and now the Fuso recall. In between all that Mitsu management never really built a strong U.S. strategy until recently (when it was too late and a poor strategy at that...)

As such, the media does seem to have a bisa towards the negative. Of course, me being a fan, I'm likely biased too

 

as a past 7th Gen owner i can vouche that this guy knows his stuff... although i owned the 6 speed it still holds true.. just visit www.v6performance.net
the Accord wasn't the only one, try every Auto 6 cyl Honda, every 97-98 Type SH 5th Gen Prelude (5 spd or auto), and every sequential shift 5th gen Prelude...

 

It's all in how they treat their customers. Problems happen and always will, but handle them with pride and take car of your customers and it's a good thing. Try to hide them, deny warranties, and act like your doing you customers a huge favor and that they should bow down and beg for repair work.. well, then thats mitsu. Guess who's vehicles get better resale value and have more repeat buyers.. If you can't figure out the right answer, you too should are ripe for a position with mitsu