Where did you find this information? My research indicates that MMNA is a wholly owned subsidiary of MMC.

I did not find any references between MMNA and IHI or MMC and IHI.

 

Mitsubishi Heavy Industries is still the controlling shareholder of Mitsubishi Motors with 25% of the shares.

http://en.wikipedia.org/wiki/Mitsubishi_Motors

 

Not all together for sure. Mitsubishi is still building jets, trains, heavy trucks, elevators, and a lot of thing that are not selling in North America to back them up. It is a big company but doing bad in North America. However, it is lucky for us to have EVO. It is not selling in all countries.

 

From your citation of the Wikipedia article:
"Mitsubishi Heavy Industries agreed to reduce its share to 25 percent, retaining its position as largest single stockholder."

Followed the source documentation from the Wikipedia: (http://www.fundinguniverse.com/compa...ation-history/):

"MHI agreed to reduce its share to 25 percent, retaining its position as largest single stockholder."

Therefore, this appears to be legitimate - you're correct and I stand corrected.

However, the "controlling shareholder" term used above is misleading. MHI may be the single largest shareholder (no verification on this past 1988) but by definition, unless it has increased its holdings in MMC past 50% or the voting rights of its shares are different than regular shares, its holding cannot be deemed a "controlling" interest.

See also Investopedia definition of "controlling interest" (http://www.investopedia.com/terms/c/...nginterest.asp):

"When one shareholder or a group acting in kind holds a high enough percentage of ownership in a company to enact changes at the highest level. By definition, this figure is 50% of the outstanding shares or voting shares, plus one. However, controlling interest can be achieved with less than 50% ownership of the stock if that person/group owns a significant proportion of the voting shares, because in many cases, not every share carries a vote in shareholder meetings. "

Additionally, while interesting, none of this supports the claim that MHI will continue to stuff money into MMC as MMC continues to lose money in North America. I stand by my initial analysis that things don't look rosy for MMC.

Do we have any documentation that indicates that MHI (as the 25% shareholder of MMC) will continue to put money into MMC and subsidize MMC's negative cash flows?

 

Even if the car division keeps loosing $, they are heavily invested in so many other areas.
A big one is real estate, was in their corprate headquarters on business many years back.
They own a nice chunk of Manhattan.
Cars are just a division of Mitsubishi, they are also partnered with the largest shipping companies in the world.
One of the biggest being Mitsui OSK lines. Plus freight forwarding on a global scale. They own freight terminals at just about every single sea port in the USA.

Not to mention I pull up to traffic light at a busy intersection.
4 cars including myself, all Mitsubishi brand.

1 outlander sport 1 evo (me) 1 lancer gts 1 rally art.

They may be down, but they are not out.

 

No doubt MHI has an impressive balance sheet and financials; I'm sure someone can dig up their data and do a simple analysis on MHI also.

I'm just not convinced that MHI will continue to funnel money into MMC, if, indeed that is the source of MMC's continued ability to absorb negative cash flow. For the moment MMC has enough cash (it would seem) to weather a couple more years of stormy weather.

But what happens when MMC's cash runs out? Does MHI buy more MMC stock to fund MMC's negative cash flow?

Not being inflammatory but as the CEO of MHI, would you do such a deal? I would be hard pressed to justify why.

 

To save face. In Japanese culture it sounds crazy but true.
They do not like to admit failure, they will continue to keep it afloat even at a loss. Unlike a US company would be chopped up & liquidated if its loosing money/not making money.
Back when I worked for a Japanese freight forwarder, they had many clients that did business with each other.
Very tight almost ignoring the fact that they were direct competitors. Mitsubishi america was one of their biggest clients.
We had a shipment of laser printer cartridges for high output photo copiers. The steamship line mishandled the load, client had very little insurance. My company took a 100k loss. Never would an American company take a loss that huge, with no chance of recovering the loss. So they will pump cash for an indefinite amount of time.

 

http://en.wikipedia.org/wiki/Automot...y_manufacturer

Mitsubishi is so tiny compared to almost any other manufacturer. Even Mazda is slightly ahead of them now (and everyone worries about them surviving given their small size)

 

Everyone don't forget Mitsubishi still has Jackie Chan!!! Like I said along with a very few others, this seems to be a topic with them since 1989 when I purchased my Eclipse. Somehow they still seem to hang around.

 

If you are talking about motor vehicles only, it is.

 

would be sad to see mitsu go... would mean no more evo

 

Eclipse is a very night car although it is not as remarkable as the EVO and Pajero!!! I drove mitsubishi's truck before. It is awesome off road.

 

hope they do manage to stick through. with the market now and taxes going up things will get more dificult.

 

Ahh, good point. I had not thought about the cultural ramifications of "losing" in the US market. Definitely not to be underestimated . . .

 

Mitsubishi's lineup has really been pathetic really, like others have said... they have themselves to blame.
I remember reading a Car&Driver magazine article this past year that showed annual car sales, and I was amazed at how appalling Mitsubishi's numbers were. But Mitsubishi is far larger than just cars, and will continue to push on in other things. Honestly I feel there's too many various manufacturers right now producing a lot of crap.