Again, I'm sorry but you are wrong. The Mitsubishi conglomerate is the largest company in Japan and one of the largest in the world. The fact that only three of the sub-companies can own 23% of Mitsu Autos should indicate to you the overall size. Mitsu Industries can step in at any time and save Mitsu Motors, and even if they choose not to there is no way in the world that the Japanese government would let it go down. There would be a corporate bailout just like you have seen in the US and Japan in the past.

Remember, crisis sells news.

- The-Anti-Chicken-Little

 

Maybe Renault should buy mitsu auto. Look how they turned Nissan around.

 

I think the bottom line is Mitsu is in big trouble, and the only way they are going to get out of this, without an outside source bailing their butt out, is to make some drastic changes, and the Evo being cut from America I'm sure is an option for them. Not to mention Mitsu entirely kanked from the US. Let's just cross our fingers and see how the cards play out.

 

Z. RX7. Prowler.

 

They have been in big trouble. this is not a sudden realization.. It is just a sudden news story.. They have had problems and I'm sure have been looking at options to resolve them..

This too shall pass..

 

ringthree,

The quote stated plainly in the article. 3 Mitsu franchises account for 23% of Mitsu auto. That's small after considering DC owning 37%. If a company devalues its shares too much, it's going to be tad amount to be dead. Look at Checkers, best example in the late 90's. Hyper inflated before tad amount to nothing, ie not attractive to shareholders.

Read the linked article. Those franchises can only stem the bleeding for about 1-2 yrs max. If there is not profitability, it's dead. Shareholders of those franchises will revolt to bail out of Mitsu Auto. The CEO has no power. The shareholders do . . . look at Mercedes CEO . . . their shareholders were headhunting. That's enough to scare him if he wants to keep his job.

As for the japanese gov't, I'm not going to hold my breath. They have enough of their own problems with corruption.

In end, I see Mitsu like Roman's leadership. Unstable leadership since 97 from scandals and coverups has killed them w/ poor decision-making skills.

 

Originally posted by ringthree

Again, what color is the sky on the planet you live on?

They need $2B in cash to bail out MMC, ie they need $20B in free cash flow which they don't - look up their annual reports. Sales do not equal cash on hand.

You are showing your age. I'm done trying to use business logic on you until you get a grip on basic corporate financials. Please do not be offended, just grow up and take some college business courses.

 

Ok Mr Trump

 

just to set the record straight (if not done so already)

DC IS NOT PULLING OUT OF MMC!
http://biz.yahoo.com/ap/040423/mitsu...motors_21.html

even so, this could be the beginning of the end. its beyond the point where mitsu can wise up and correct their many mistakes. it will take another company actively injecting massive amounts of cash and restructuring support. i know i'll be hoping for a nissan-like turn around, but i'm skeptical.

i'd wager a guess that we'll know by the end of may if mitsu is going to make it, or fade into history with the evo and the zero.

 

From the article:

"DaimlerChrysler's chief financial officer Manfred Gentz said a decision had not yet been made on what it will do with its 37 percent stake in Mitsubishi Motors, which employs 43,801 workers worldwide.

"There is no decision for selling our stake, and we are not looking for someone to buy it," Gentz said."
=======================

That's corporate double talk for morale sake. Example: when a company buys another and vowing not to doing any lay-offs.



"Mitsubishi Heavy Industries owns 15 percent of the automaker, trading company Mitsubishi Corp. a 5 percent stake, and Bank of Tokyo-Mitsubishi 3 percent. DaimlerChrysler owns 37 percent of the automaker."
=============================

Shareholders will revolt. There is no way DC shareholders want to keep a portfolio of a sinking ship.





"Sales in Japan have never recovered after Mitsubishi Motors acknowledged four years ago that it had systematically hidden auto defects for decades. The company recalled millions of vehicles. The automaker had already suffered losses as it struggled to compete with Japanese rivals Toyota Motor Corp. and Honda Motor Co.

Mitsubishi Motors embarked on a revival plan and returned to profitability in fiscal 2002, but the following year suffered massive losses from buyers in North America with bad credit.

The recalls have continued despite DaimlerChrysler's efforts to upgrade quality.

Mitsubishi Motors is forecasting a loss of about $658 million for the fiscal year that ended March 31, a reversal from the profit of $338 million the previous year.

Mitsubishi Motors spun off its truck division last year, but that hasn't helped the brand's image.

"The situation can be called a crisis for Mitsubishi Motors," said Nobuaki Yanachi, auto analyst at UFJ Tsubasa Securities Co. in Tokyo. "Even with the extra money, a turnaround would have taken a long time."
=========================

If you are a stock buyer, stuff like this will kill your interest.

 

Z - End of cycle, not profitable.

RX7 - Not profitable in US market, post-production cost.

Prowler - Horribly unprofitable.

Sorry, try again.

 

BTW I have read those articles and quite a few more...

Man, I guess you just dont want to see. Those three companies are just a small part of the overall Mitsubishi conglomerate. The fact that they already have 23% should tell you how big the conglomerate is. Hell, Bank of Tokyo-Mitsubishi could buy the 37% tomorrow if they wanted to.

Those three companies are just a small portion of the Mitsubishi conglomerate. I think you may need to learn more about the japanese zabatsu.

Sorry, but Mitsubishi Motors is profitable, they just made a horendous marketing mistake with the 0-0-0 deal. The fact that they had record sales this year worldwide outside of the US should prove that.

You have every right to be pessimisitic, but at least give a good reason. The restructuring plan will eventually attract more investors and until that time Mitsu industries or even the Japanese government will prop them up. It will definitely be a rough year, but Mitsubishi Motors will not be allowed to fall.

Everything you have posted is pure speculation. The only links you have posted have been to the same article that everyone else has seen, that DCAG is pulling out. We are already discussing 3 steps beyond that.

 

I can see some ways that Mitsu will survice or not.

1) ringthree is correct. Devalue stocks enough for a complete hostile takeover for a super majority and overcome headhunting from DC own shareholders. The next problem: how are you going to convince banks to loan more money when Mitsu credit rating has been lowered?

2) DC jettisons its shares and cut its lost. Stock value will drop so much that the other 3 Mitsu franchises can't float its stability of the company. A total fold.

3) A temp bail out by the gov't . . . upper management must bring about a restructuring plan to satisfy gov't requirements.

4) Mitsu cuts out America completely for 2-3 years to stabilize their home market before stepping onto US shores again. Warranty and parts will go through Chrysler, and they will mark up their prices to compensate its worth.

 

Wow, intellectually snobery without any proof at all. Now that is funny. Good try guessing at my age, but you are completely wrong, and that is totally besides the point. I dont even think that was a very good ad hom, it would have been easier to just say something about my mother.

You obviously dont see a need to continue any kind of decent discussion on this, and you obviously see yourself as more intelligent than I (although, I can't see why). So I will say this. I will wager $5 that both Mistubishi will not go down and that the Evo will not be cut from the US line up.

You have your "college business courses" behind you, you should feel confident about this. What do you say?

 

This very last line is my whole point. They are not looking for stock buyers now, they are looking for a bailout. They will get it from somewhere in the Mitsubishi conglomerate. There are far too many interests in seeing Mitsubishi motors stay alive.

I do have to say that I do agree that your scenarios or some combination of them will occur.

-The Anti-Chicken-Little.