ALL DaimlerChrysler - Mitsubishi's Financial Standpoint/Restructuring in HERE!
Evolving Member
Joined: Apr 2002
Posts: 275
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From: Ann Arbor, Michigan
Why, two reasons...
1.
does not have excess capacity to make Evos. That's why there was a delay (before the sh*t hit the fan) between the '04 GSR and the MR of 4-5mnths. They need to retool to make it left-hand drive, which costs money, money that would be better spent to improve quality on pre-existing, higher volume products as well as developing future products.
2. Evos are expensive to make. There is a point where, regardless of the numbers made, the cost of the product will not decrease regardless of the numbers made. That's why Subaru has the base WRX and the STi. All the added engineering, changes in parts, etc are reflected in the price difference.
It would of been better to ask why didn't use the Evo 4wd platform as a base for the Lancer to attach that lucrative Impreza market is a much better question 
.
And what the hell where they thinking with the present Eclipse? FWD only? Underpowered? The size/weight of the 3000, with the power of a Lancer. Not to smart.
Regardless, hopefully they learned from their mistakes and get a second... well third chance, otherwise as an automobile company will likely not survive period, let alone in the U.S.
g
1.
does not have excess capacity to make Evos. That's why there was a delay (before the sh*t hit the fan) between the '04 GSR and the MR of 4-5mnths. They need to retool to make it left-hand drive, which costs money, money that would be better spent to improve quality on pre-existing, higher volume products as well as developing future products.2. Evos are expensive to make. There is a point where, regardless of the numbers made, the cost of the product will not decrease regardless of the numbers made. That's why Subaru has the base WRX and the STi. All the added engineering, changes in parts, etc are reflected in the price difference.
It would of been better to ask why didn't
use the Evo 4wd platform as a base for the Lancer to attach that lucrative Impreza market is a much better question .And what the hell where they thinking with the present Eclipse? FWD only? Underpowered? The size/weight of the 3000, with the power of a Lancer. Not to smart.
Regardless, hopefully they learned from their mistakes and get a second... well third chance, otherwise
as an automobile company will likely not survive period, let alone in the U.S.g
Newbie
Joined: Mar 2003
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downfall was cheapening the "BRAND", and giving bad loans. They were practically giving away cars, 0% 0payment for X amount of years. Like someone said earlier Nissan was on the same spot a few years ago, lets just hope the new mmcna ceo knows what his doing.
dont expect to sell that many EVO, its niche market. BTW did you know that designed/built the new EVO WRC rally car Oct. 2003, which they were suppose to be testing the whole year 
.
Evolving Member
Joined: Apr 2002
Posts: 275
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From: Ann Arbor, Michigan
It keeps getting worse...
http://www.mercurynews.com/mld/mercu...8522676.htm?1c
In light of a new plan, the CEO jets. Why? Because there's one thing to stay on a sinking ship, it's another when the captain realizes the owner of the ship is inadvertently trying to sink it.
may have tumbled from bad loans, but what really brought them to their present condition is that they didn't change when given a second and third chance. Reliability was down, their image was tarnished and their non-German management was still in place doing buisness as usual.
Hard to captain a ship when someone else is controling the rudder.
g
http://www.mercurynews.com/mld/mercu...8522676.htm?1c
In light of a new plan, the CEO jets. Why? Because there's one thing to stay on a sinking ship, it's another when the captain realizes the owner of the ship is inadvertently trying to sink it.
may have tumbled from bad loans, but what really brought them to their present condition is that they didn't change when given a second and third chance. Reliability was down, their image was tarnished and their non-German management was still in place doing buisness as usual.Hard to captain a ship when someone else is controling the rudder.
g
Good news for mitsubishi!!!
Got into work today and Finbar left an email. Mitsu according to Finbar, mitsu has formed a revitalization team with Mitsubishi heavy industries, Mitsubishi Corp, and the Bank of Tokyo. They are going to draw up a new business plan. The new plan will be coming out in one month. It is headed up by Yoichiro Okazaki, he is the managing director of mitubishi heavy industries.
This is very good news people!
This is very good news people!
Newbie
Joined: Sep 2002
Posts: 23
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From: Ponce, Puerto Rico
Read This!
strongly welcome the quick decision of Mitsubishi Heavy Industries, Mitsubishi Corporation and Bank of Tokyo-Mitsubishi not only to offer financial support but also to actively work with Mitsubishi Motors Corporation on a new mid-term business plan as announced last Friday. Based on my sense of responsibility, I therefore decided to make way for the new team around future chairman Okazaki, Eckrodt said. The business revitalization team headed by Mr. Okazaki will work out this plan within the next month based on various essential steps that have already been analyzed and evaluated by MMC so far.
read more at: http://media.mitsubishi-motors.com/p...etail1039.html
strongly welcome the quick decision of Mitsubishi Heavy Industries, Mitsubishi Corporation and Bank of Tokyo-Mitsubishi not only to offer financial support but also to actively work with Mitsubishi Motors Corporation on a new mid-term business plan as announced last Friday. Based on my sense of responsibility, I therefore decided to make way for the new team around future chairman Okazaki, Eckrodt said. The business revitalization team headed by Mr. Okazaki will work out this plan within the next month based on various essential steps that have already been analyzed and evaluated by MMC so far. read more at: http://media.mitsubishi-motors.com/p...etail1039.html
Newbie
Joined: Sep 2002
Posts: 23
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From: Ponce, Puerto Rico
Evolving Member
Joined: Apr 2002
Posts: 275
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From: Ann Arbor, Michigan
You don't become head of a company without being political.
And the key point is bedded within...
"Commenting on the timing for his resignation, Eckrodt pointed to the decision of the Supervisory Board of DaimlerChrysler neither to participate in a capital increase nor to grant further financial support to Mitsubishi Motors Corporation, which was announced last Thursday."
Eckrodt may definitely believe in MMC, but he doesn't believe that Mitsubishi Heavy Industries, Mitsubishi Corporation and Bank of Tokyo-Mitsubishi have enough capital to revive.
And he's right... Mitsu Corp and Mitsu Heavy Ind. had declining revenue and in light of their anouncement to attempt a bailout of MMC, a significant decline in their stock value today.
Their's a reason why investors and analysts are flaming or rewarding companies that attempt to save or walk away from.
And to date, there has not been a successful bailout of a Japanese Automotive company by Japanese management.
We'll say the way the cards play out, but the more I'm reading, the more i've run the strata of optimism, to realism, and now to pesimism at present.
I hope i'm wrong.
g
And the key point is bedded within...
"Commenting on the timing for his resignation, Eckrodt pointed to the decision of the Supervisory Board of DaimlerChrysler neither to participate in a capital increase nor to grant further financial support to Mitsubishi Motors Corporation, which was announced last Thursday."
Eckrodt may definitely believe in MMC, but he doesn't believe that Mitsubishi Heavy Industries, Mitsubishi Corporation and Bank of Tokyo-Mitsubishi have enough capital to revive
.And he's right... Mitsu Corp and Mitsu Heavy Ind. had declining revenue and in light of their anouncement to attempt a bailout of MMC, a significant decline in their stock value today.
Their's a reason why investors and analysts are flaming or rewarding companies that attempt to save or walk away from
.And to date, there has not been a successful bailout of a Japanese Automotive company by Japanese management.
We'll say the way the cards play out, but the more I'm reading, the more i've run the strata of optimism, to realism, and now to pesimism at present.
I hope i'm wrong.
g
Evolving Member
Joined: Feb 2003
Posts: 143
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Originally posted by 2112
Jeez, talk about over-reaction. A huge corporation like Mitsubishi will not fold overnight, there are many things they can do including filing "chapter 11" that can keep them afloat for quite some time. It would be a good year or two before anything drastic happened with all the legal avenues available but they could discontinue some vehicles before then. I do not see them cutting the Evo, it is the only car keeping the company alive and is their "cash cow" so I think that would be one of the last cars to go.
Jeez, talk about over-reaction. A huge corporation like Mitsubishi will not fold overnight, there are many things they can do including filing "chapter 11" that can keep them afloat for quite some time. It would be a good year or two before anything drastic happened with all the legal avenues available but they could discontinue some vehicles before then. I do not see them cutting the Evo, it is the only car keeping the company alive and is their "cash cow" so I think that would be one of the last cars to go.
There was zero chance that Mitsubishi was was/is/will fold. I also agree about the Evo. You never cut a profittable car.
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Joined: Feb 2003
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Originally posted by ChodeSlappinFun
It seems like no one here is addressing the real heart of the problem. Let's just forget about the EVO for one second, because that is a low volume car, not a money maker for Mitsu in the US, just an attention getter.
It seems like no one here is addressing the real heart of the problem. Let's just forget about the EVO for one second, because that is a low volume car, not a money maker for Mitsu in the US, just an attention getter.
Originally posted by ChodeSlappinFun
Look at the rest of the Mitsu lineup. Who buys these cars? The Galant, the base lancer the eclipse etc etc ? Do you think there are many people out there thinking to themselves, "Gee I really want to go out and buy that Mitsubishi. It's a great reliable cost effective car that will hold it's resale value" ? No of course not, the people buying these cars are doing so because they can't get financing at other dealerships. Mitsubishi realized this, and they have made it a policy to give financing to those people who otherwise would not qualify. Guess what, it's come back to haunt them. For some reason Mitsubishi didn't understand that Americans don't care about going into debt and defaulting on their loans. Why, because in America, you simply file for bankruptcy and then move on. In order for Mitsubishi to survive, they will now have to change their entire marketing strategy. Instead of attracting customers with easy financing, they will now have to attract customers on the merit's of the Mitsubishi product line. Guess what, unless there is a complete 180 degree turn around in the build quality and service offered by Mitsubishi, they aren't going to be around for very much longer.
Look at the rest of the Mitsu lineup. Who buys these cars? The Galant, the base lancer the eclipse etc etc ? Do you think there are many people out there thinking to themselves, "Gee I really want to go out and buy that Mitsubishi. It's a great reliable cost effective car that will hold it's resale value" ? No of course not, the people buying these cars are doing so because they can't get financing at other dealerships. Mitsubishi realized this, and they have made it a policy to give financing to those people who otherwise would not qualify. Guess what, it's come back to haunt them. For some reason Mitsubishi didn't understand that Americans don't care about going into debt and defaulting on their loans. Why, because in America, you simply file for bankruptcy and then move on. In order for Mitsubishi to survive, they will now have to change their entire marketing strategy. Instead of attracting customers with easy financing, they will now have to attract customers on the merit's of the Mitsubishi product line. Guess what, unless there is a complete 180 degree turn around in the build quality and service offered by Mitsubishi, they aren't going to be around for very much longer.
The reason they are in trouble is not because of the products but because of the financial decisions they have made.
Also, for those that say they need to make a "180" have you even read the articles that have been posted? They are entirely restructuring the company. They are changing upper management and production.
Seriously I have never seen a larger group of Chicken Littles ever.
- The Anti-Chicken-Little.
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Joined: Feb 2003
Posts: 143
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Originally posted by pjork-master
Why, two reasons...
1. does not have excess capacity to make Evos. That's why there was a delay (before the sh*t hit the fan) between the '04 GSR and the MR of 4-5mnths. They need to retool to make it left-hand drive, which costs money, money that would be better spent to improve quality on pre-existing, higher volume products as well as developing future products.
Why, two reasons...
1.
does not have excess capacity to make Evos. That's why there was a delay (before the sh*t hit the fan) between the '04 GSR and the MR of 4-5mnths. They need to retool to make it left-hand drive, which costs money, money that would be better spent to improve quality on pre-existing, higher volume products as well as developing future products.
Originally posted by pjork-master
2. Evos are expensive to make. There is a point where, regardless of the numbers made, the cost of the product will not decrease regardless of the numbers made. That's why Subaru has the base WRX and the STi. All the added engineering, changes in parts, etc are reflected in the price difference.
2. Evos are expensive to make. There is a point where, regardless of the numbers made, the cost of the product will not decrease regardless of the numbers made. That's why Subaru has the base WRX and the STi. All the added engineering, changes in parts, etc are reflected in the price difference.
The STi comparison is totally wrong. Its a relatively new chassis, and a very new engine. The cost to income ratio is much lower that for an Evo.
Originally posted by pjork-master
It would of been better to ask why didn't use the Evo 4wd platform as a base for the Lancer to attach that lucrative Impreza market is a much better question .
And what the hell where they thinking with the present Eclipse? FWD only? Underpowered? The size/weight of the 3000, with the power of a Lancer. Not to smart.
Regardless, hopefully they learned from their mistakes and get a second... well third chance, otherwise as an automobile company will likely not survive period, let alone in the U.S.
g
It would of been better to ask why didn't
use the Evo 4wd platform as a base for the Lancer to attach that lucrative Impreza market is a much better question .And what the hell where they thinking with the present Eclipse? FWD only? Underpowered? The size/weight of the 3000, with the power of a Lancer. Not to smart.
Regardless, hopefully they learned from their mistakes and get a second... well third chance, otherwise
as an automobile company will likely not survive period, let alone in the U.S.g
Ultimately Mitsu will survive, and there is no chance of it pulling out the US.
Evolving Member
Joined: Apr 2002
Posts: 275
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From: Ann Arbor, Michigan
First of all, the only reason the Evo is 's cash cow is because they aren't selling anything else. But don't confuse sales with profits... the Evo is a minimally profitable product.
Second, Chicken littles or not, squandered $2.4billion in 'free' investment' to date. What makes you thing that things will change after an additional $6-8billion is poured in? And who's the new managment? Eckrodt was good and had a proven record at Daimler, making them huge profits with their train division.
What brain power can Mitsu Corp, Mitsu Holdings and Tokyo Bank provide? The industries are on the downward spiral... and all three don't have several billion just hanging around. The only company in Japan with pocket change like that is named TOYOTA.
So the sky isn't falling, but nothing to date has been justifiable reason to celebrate that will come back.
g
's cash cow is because they aren't selling anything else. But don't confuse sales with profits... the Evo is a minimally profitable product. Second, Chicken littles or not,
squandered $2.4billion in 'free' investment' to date. What makes you thing that things will change after an additional $6-8billion is poured in? And who's the new managment? Eckrodt was good and had a proven record at Daimler, making them huge profits with their train division. What brain power can Mitsu Corp, Mitsu Holdings and Tokyo Bank provide? The industries are on the downward spiral... and all three don't have several billion just hanging around. The only company in Japan with pocket change like that is named TOYOTA.
So the sky isn't falling, but nothing to date has been justifiable reason to celebrate that
will come back.g
Evolving Member
Joined: Feb 2003
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Originally posted by pjork-master
It keeps getting worse...
http://www.mercurynews.com/mld/mercu...8522676.htm?1c
In light of a new plan, the CEO jets. Why? Because there's one thing to stay on a sinking ship, it's another when the captain realizes the owner of the ship is inadvertently trying to sink it.
may have tumbled from bad loans, but what really brought them to their present condition is that they didn't change when given a second and third chance. Reliability was down, their image was tarnished and their non-German management was still in place doing buisness as usual.
Hard to captain a ship when someone else is controling the rudder.
g
It keeps getting worse...
http://www.mercurynews.com/mld/mercu...8522676.htm?1c
In light of a new plan, the CEO jets. Why? Because there's one thing to stay on a sinking ship, it's another when the captain realizes the owner of the ship is inadvertently trying to sink it.
may have tumbled from bad loans, but what really brought them to their present condition is that they didn't change when given a second and third chance. Reliability was down, their image was tarnished and their non-German management was still in place doing buisness as usual.Hard to captain a ship when someone else is controling the rudder.
g
You are just totally speculating. Mitsu is selling cars well around the world. A very poor financial decision in the US is wrecking them. They will turn in around in a couple of years.