ALL DaimlerChrysler - Mitsubishi's Financial Standpoint/Restructuring in HERE!
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Well Mitsu may get bailed out by it's other owners but I think they will more than likely make some major changes in the line-up of cars being offered. In addition, I think you can expect heavy cost cutting and a limited selection of cars/suvs.
This may be trouble for the Evo. But then again, it amy add value to those who already own one.
On the resale side of things, let's just say that I would not buy a Mitsubishi in light of todays news by Daimler Chrysler. Resale values will most certianly suffer tremendously except for perhaps on the Evo.
As for the MR, I think that fate of that specialized version is now at serious risk as well.
Just my .02
This may be trouble for the Evo. But then again, it amy add value to those who already own one.
On the resale side of things, let's just say that I would not buy a Mitsubishi in light of todays news by Daimler Chrysler. Resale values will most certianly suffer tremendously except for perhaps on the Evo.
As for the MR, I think that fate of that specialized version is now at serious risk as well.
Just my .02
Something from the Car Connection web site....
DaimlerChrysler to pull plug on Mitsubishi?
DaimlerChrysler AG said Thursday it will not proceed with a $6 billion-plus bailout of Mitsubishi Motors, leaving the future of the struggling Japanese automaker in doubt. The announcement is an about-face from reports last week that the German automaker would increase its stake from 37 percent to more than 50 percent by 2007 at a cost of $3.8 billion by buying up more stock as part of a broader bailout that involved Japanese creditors.
"In an extraordinary meeting on April 22, 2004, the Board of Management and the Supervisory Board of DaimlerChrysler have decided not to participate in a capital increase planned by Mitsubishi Motors Corporation (MMC) and to cease further financial support for MMC," said an official statement from DaimlerChrysler.
"This clearly means separation," a DaimlerChrysler spokesman told Reuters, adding that the 37-percent stake would be booked as discontinued business until a buyer could be found. The decision will be explained by DaimlerChrysler chairman Juergen Schrempp today.
On the minds of many in the U.S. is how a pull-out from Mitsubishi will impact a joint four-cylinder "world engine" development program between Chrysler and Mitsubishi, as well as development of small and mid-size cars between the two companies. Chrysler executives have boasted about how much money they are saving in development and purchasing by combining with Mitsubishi. Wolfgang Bernhard, outgoing Chrysler chief operating officer who is about to take over as chief of Mercedes-Benz, said earlier this month that no action regarding Mitsubishi would derail those programs. But analysts have doubted that Mitsubishi can survive independently without DaimlerChrysler, and no other buyers have surfaced.
David Healy, an auto industry analyst with Burnham Securities, said that in "pulling the plug" on Mitsubishi it looked as if group board members had "finally rebelled against Schrempp's pouring money down that financial black hole." Shareholders have called for Schrempp's replacement. But the supervisory board has continued to back him despite acquisitions of Chrysler and Mitsubishi draining more than $40 billion in shareholder value since 1998. Mitsubishi expects to post a loss of $686 million for the year ended March 31. That would bring the company's losses over seven years to $3 billion. Mitsubishi sales in the USA, down 26 percet last year, have slid 19 percent so far this year.
DaimlerChrysler recently dispatched Andreas Renschler, former head of its Smart minicar division, to Mitsubishi to assemble a rescue plan. Renschler was expected to replace Mitsubishi CEO Rolf Eckrodt as early as this month. -Jim Burt
http://thecarconnection.com/index.as...&sid=173&n=156
DaimlerChrysler to pull plug on Mitsubishi?
DaimlerChrysler AG said Thursday it will not proceed with a $6 billion-plus bailout of Mitsubishi Motors, leaving the future of the struggling Japanese automaker in doubt. The announcement is an about-face from reports last week that the German automaker would increase its stake from 37 percent to more than 50 percent by 2007 at a cost of $3.8 billion by buying up more stock as part of a broader bailout that involved Japanese creditors.
"In an extraordinary meeting on April 22, 2004, the Board of Management and the Supervisory Board of DaimlerChrysler have decided not to participate in a capital increase planned by Mitsubishi Motors Corporation (MMC) and to cease further financial support for MMC," said an official statement from DaimlerChrysler.
"This clearly means separation," a DaimlerChrysler spokesman told Reuters, adding that the 37-percent stake would be booked as discontinued business until a buyer could be found. The decision will be explained by DaimlerChrysler chairman Juergen Schrempp today.
On the minds of many in the U.S. is how a pull-out from Mitsubishi will impact a joint four-cylinder "world engine" development program between Chrysler and Mitsubishi, as well as development of small and mid-size cars between the two companies. Chrysler executives have boasted about how much money they are saving in development and purchasing by combining with Mitsubishi. Wolfgang Bernhard, outgoing Chrysler chief operating officer who is about to take over as chief of Mercedes-Benz, said earlier this month that no action regarding Mitsubishi would derail those programs. But analysts have doubted that Mitsubishi can survive independently without DaimlerChrysler, and no other buyers have surfaced.
David Healy, an auto industry analyst with Burnham Securities, said that in "pulling the plug" on Mitsubishi it looked as if group board members had "finally rebelled against Schrempp's pouring money down that financial black hole." Shareholders have called for Schrempp's replacement. But the supervisory board has continued to back him despite acquisitions of Chrysler and Mitsubishi draining more than $40 billion in shareholder value since 1998. Mitsubishi expects to post a loss of $686 million for the year ended March 31. That would bring the company's losses over seven years to $3 billion. Mitsubishi sales in the USA, down 26 percet last year, have slid 19 percent so far this year.
DaimlerChrysler recently dispatched Andreas Renschler, former head of its Smart minicar division, to Mitsubishi to assemble a rescue plan. Renschler was expected to replace Mitsubishi CEO Rolf Eckrodt as early as this month. -Jim Burt
http://thecarconnection.com/index.as...&sid=173&n=156
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At least the next Lancer won't be based on the Neon.
I don't see how this will effect the decesion to bring more Evo's\MR's or not.
Car is designed, and ready to go, and car makers generally need to sell a car to make money.
Also, it's a cash cow for Mitsubishi.
Amazing that a retarded marketing/finance decision can basically ruin a whole company.
Does anyone know then name of the dumbass who approved the initial, here's a car - pay us nothing deal??
I don't see how this will effect the decesion to bring more Evo's\MR's or not.
Car is designed, and ready to go, and car makers generally need to sell a car to make money.
Also, it's a cash cow for Mitsubishi.
Amazing that a retarded marketing/finance decision can basically ruin a whole company.
Does anyone know then name of the dumbass who approved the initial, here's a car - pay us nothing deal??
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Good point cannyboy, we can all blame the idiot who decided anyone can qualify for credit when buying a Mitsui. This is what may in fact bring the company down.
But a great line up of new cars that the consumer really wants can bail them out just as easliy.
But a great line up of new cars that the consumer really wants can bail them out just as easliy.
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Joined: Apr 2002
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From: TB, FL
This is a worst case sceanrio. Amongst us, I don't think we can muscle enough capital to even get 10% of its shares, unless plummetting stock value. Besides, it's not like really publicly owned like the Green Bay Packers or Boston Celtics.
Looks like the 0-0-0 bit Mitsu in the butt. Mitsu should concentrate on the sales of the lancer. 3g eclipse, and the modern galants . . . they are the bread and butter of sales. The Evo can't save Mitsu.
First thing axed will be motorsports. There will be tons of privateers, look at Porsche racers across the world . . . tons of them since the death of Al Hobert around the mid-80's, the last of Porsche factory backing.
Looks like the 0-0-0 bit Mitsu in the butt. Mitsu should concentrate on the sales of the lancer. 3g eclipse, and the modern galants . . . they are the bread and butter of sales. The Evo can't save Mitsu.
First thing axed will be motorsports. There will be tons of privateers, look at Porsche racers across the world . . . tons of them since the death of Al Hobert around the mid-80's, the last of Porsche factory backing.
Last edited by bahamut; Apr 23, 2004 at 07:37 AM.
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From: Indiana
DCX has too much 
in it's lineup to just up and pull out. Neon SRT-4 turbo, Dodge Stratus coupe, and more all depend on The world engine plant being build in MI has heavy involvement, and that is not going to just end.
The new Neon platform is to be based on not the other way around.
This, like everything else in the auto world, is subject to change. DCX did not like financial prospects nor their future plans. Should they change, DCX will likely change their minds too.
Chrysler almost died in the 80's. and the federal gov stepped up to keep that from happening. I suspect that similar support from DCX and the Jap gov would happen if started flatlining.
I do fear that the MR is in danger as is factory backing of motorsports.
in it's lineup to just up and pull out. Neon SRT-4 turbo, Dodge Stratus coupe, and more all depend on The world engine plant being build in MI has heavy involvement, and that is not going to just end. The new Neon platform is to be based on
not the other way around.This, like everything else in the auto world, is subject to change. DCX did not like
financial prospects nor their future plans. Should they change, DCX will likely change their minds too.Chrysler almost died in the 80's.
and the federal gov stepped up to keep that from happening. I suspect that similar support from DCX and the Jap gov would happen if started flatlining.I do fear that the MR is in danger as is factory backing of motorsports.
Last edited by EVO-dreams; Apr 23, 2004 at 07:42 AM.
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The article pretty clearly says that Mitsubishi Industries is going to prop up Mitsu Motors.
This is not a dire as it seems. In reality it seems more like a dire move for DCAG rather than Mitsu.
Also I hate the fact that people keep saying that Mitsu is unprofitable. It was for ONE year, but the last couple of years it has been making money hand over fist. The low interest loan failures hurt them big time but its not like they are done.
Finally, what I really want to see is what happens with Diamond Star Motors, because DSM has existed long before this DCAG/Mitsu thing.
This is not a dire as it seems. In reality it seems more like a dire move for DCAG rather than Mitsu.
Also I hate the fact that people keep saying that Mitsu is unprofitable. It was for ONE year, but the last couple of years it has been making money hand over fist. The low interest loan failures hurt them big time but its not like they are done.
Finally, what I really want to see is what happens with Diamond Star Motors, because DSM has existed long before this DCAG/Mitsu thing.
Last edited by SoR; Apr 23, 2004 at 09:19 AM.
Let's see how Nissan pulled out of doldrums - by offering no frills Sentra and Stanza and killing all of its motorsports endeavors, including putting Z in stasis, until they recovered. Cut expenses and put out cookie cutters - stripped down cars where just about every option is either PIO or DIO to make assembly line run as efficiently and quickly as possible.
If DC does indeed dump its share (I think that is still rather debatable, they are playing hardball in their negotiating right now) then look for MMC to exit US - stop the bleading first and foremost, - then dump Eclipse, Lancer RA, EVO MR and RS, consolidate their SUV platforms and concentrate on sales of Galants and base Lancers. Say bye-bye to Ralliart altogether and any and all motorsports involvement.
If DC does stay in, I would still bet massive consolidation will take place and Eclipse and MR and RS will bite the dust as well as either Montero or Monteo Sport. Motorsports will also be axed and EVO will likely be relegated to JDM only. Dodge and Anything Sporty left at MMC will be merged into one.
And last but not least, if and when ink will turn from red to black, look for MMC to introduce a new brand, a la Acura/Lexus/Infinity to go after that profitable market segment.
If DC does indeed dump its share (I think that is still rather debatable, they are playing hardball in their negotiating right now) then look for MMC to exit US - stop the bleading first and foremost, - then dump Eclipse, Lancer RA, EVO MR and RS, consolidate their SUV platforms and concentrate on sales of Galants and base Lancers. Say bye-bye to Ralliart altogether and any and all motorsports involvement.
If DC does stay in, I would still bet massive consolidation will take place and Eclipse and MR and RS will bite the dust as well as either Montero or Monteo Sport. Motorsports will also be axed and EVO will likely be relegated to JDM only. Dodge and Anything Sporty left at MMC will be merged into one.
And last but not least, if and when ink will turn from red to black, look for MMC to introduce a new brand, a la Acura/Lexus/Infinity to go after that profitable market segment.
Japan
http://mdn.mainichi.co.jp/news/20040...fp008001c.html
More infromation about
Europe
http://quote.bloomberg.com/apps/news...Q&refer=europe
Survival
``My concern is how the company is going to survive,'' said Makoto Sakuma, who helps manage $3.6 billion at Asahi Life Asset Management Co. in Tokyo. ``It's going to be difficult for them to get foreign investments unless they have a better plan of reorganization, which Mitsubishi Motors lacks.''
Mitsubishi Motors' brand image was hurt after it recalled 2 million vehicles in 2000 and 2001.
This year, Mitsubishi Fuso Truck & Bus Co., Japan's third- biggest maker of heavy vehicles, recalled 130,000 vehicles at a cost of 700 billion yen to fix faulty wheel hubs. The faulty hubs have been linked to 50 accidents, including one death.
The carmaker's sales slumped 26 percent in the U.S. last year after it tightened lending policies in response to rising defaults by customers. Bigger rivals such as Toyota Motor Corp. and Honda Motor Co. were grabbing record market share in the U.S., the world's biggest automobile the world's biggest automobile market. The carmaker hasn't made a major revamp to any of its models since November 2002.
http://mdn.mainichi.co.jp/news/20040...fp008001c.html
More infromation about
Europe
http://quote.bloomberg.com/apps/news...Q&refer=europe
Survival
``My concern is how the company is going to survive,'' said Makoto Sakuma, who helps manage $3.6 billion at Asahi Life Asset Management Co. in Tokyo. ``It's going to be difficult for them to get foreign investments unless they have a better plan of reorganization, which Mitsubishi Motors lacks.''
Mitsubishi Motors' brand image was hurt after it recalled 2 million vehicles in 2000 and 2001.
This year, Mitsubishi Fuso Truck & Bus Co., Japan's third- biggest maker of heavy vehicles, recalled 130,000 vehicles at a cost of 700 billion yen to fix faulty wheel hubs. The faulty hubs have been linked to 50 accidents, including one death.
The carmaker's sales slumped 26 percent in the U.S. last year after it tightened lending policies in response to rising defaults by customers. Bigger rivals such as Toyota Motor Corp. and Honda Motor Co. were grabbing record market share in the U.S., the world's biggest automobile the world's biggest automobile market. The carmaker hasn't made a major revamp to any of its models since November 2002.
Last edited by snoop; Apr 23, 2004 at 08:28 AM.
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I guess D/C is playing hardball and wants the shares of mitsu to tank so they can buy more shares for less money.
Last edited by LancerEvoMR; Apr 23, 2004 at 08:29 AM.
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Originally posted by Z0650TH
Well Mitsu may get bailed out by it's other owners but I think they will more than likely make some major changes in the line-up of cars being offered. In addition, I think you can expect heavy cost cutting and a limited selection of cars/suvs.
This may be trouble for the Evo. But then again, it amy add value to those who already own one.
On the resale side of things, let's just say that I would not buy a Mitsubishi in light of todays news by Daimler Chrysler. Resale values will most certianly suffer tremendously except for perhaps on the Evo.
As for the MR, I think that fate of that specialized version is now at serious risk as well.
Just my .02
Well Mitsu may get bailed out by it's other owners but I think they will more than likely make some major changes in the line-up of cars being offered. In addition, I think you can expect heavy cost cutting and a limited selection of cars/suvs.
This may be trouble for the Evo. But then again, it amy add value to those who already own one.
On the resale side of things, let's just say that I would not buy a Mitsubishi in light of todays news by Daimler Chrysler. Resale values will most certianly suffer tremendously except for perhaps on the Evo.
As for the MR, I think that fate of that specialized version is now at serious risk as well.
Just my .02
The Evo is a VERY profittable car for Mitsu. Mitsu makes back a much larger percentage of profit on every Evo sale. This is because the engine, suspension and everything on the car is already past the point of return on investment.
These evetns may delay the development of the Evo 9. But if anything we are only going to see an increase in Evo's available in the future.
If anyone has any SERIOUS information about the Evo then please post it, until then speculation that it is going to die is just paranoia. I suggest that you look into the profittability of the Evo before you comment further.
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From: TB, FL
Nissan is different. Renault wanted its tech in tranny, so it was cost effective to buy nissan out and incorporate new tech.
DC will dump its shares if Banks don't doll out of restructuring funds.
"then dump Eclipse"
Why kill the 3g eclipse? It shares the same chassis as the galant and sells very well, especially the profit margin on the GT and GTS.
DC will dump its shares if Banks don't doll out of restructuring funds.
"then dump Eclipse"
Why kill the 3g eclipse? It shares the same chassis as the galant and sells very well, especially the profit margin on the GT and GTS.