Mitsu cancels project with DCX
Feb 21, 2005, 06:20 AM
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Mitsu cancels project with DCX
From the Car Connection website
http://www.thecarconnection.com/index.asp?article=8150
The ailing Mitsubishi Motor Corp. fended off reports that it was about to dump its American operations last week - but company officials have confirmed that a once-promising joint-development project undertaken with DaimlerChrysler has been shelved.
The struggling Japanese automaker flatly dismissed an elaborate report in the Wall Street Journal, suggesting the company was trying to find a buyer for its operations in the United States. The Journal reported that another automaker might be willing to take over the company's dealer network and that a buyer might even be found for its assembly plant in Normal, Illinois.
"The article in the Wall Street Journal stating that MMC is seeking a buyer for its operations in the U.S. is groundless. MMC's President, Osamu Masuko, and Non-Executive Member of the Board, Yasushi Ando, did not meet with representatives from Ripplewood Holdings LLC nor Magna International Inc. during the North American International Auto Show in Detroit," Mitsubishi said in an official statement that was drafted in Japan and distributed by the company's public relations representatives in the United States. Ripplewood Holdings and Magna were identified as the potential buyers of Mitsubishi's North American properties by the Journal.
"As announced on January 28, the U.S. is a very important market for the revitalization of MMC and thus the company has no intentions to exit this market. Additionally, the company has never pursued the possibility of exiting the U.S. market with potential third parties," the Mitsubishi officials added.
Chrysler coop cancelled
Officials from the Japanese automaker, however, did confirm that Mitsubishi has suspended development of a D-segment or mid-size car or crossover vehicle through its once thriving partnership with the Chrysler Group.
Dieter Zetsche, Chrysler Group president and chief executive officer, had told reporters that Chrysler and Mitsubishi had completed development of a common platform for the C-D segment. Mitsubishi, however, elected not to develop any of bodywork required to fill out their part of the project, Zetsche said. "Mitsubishi never put any of its future top hats on that platform," said Zetsche.
"Mitsubishi would still be welcome to use that platform," added Zetsche, who said Chrysler has moved ahead with its own D-segment vehicles from the same platform.
Mitsubishi's decision not to complete development of a vehicle will not have any impact on Chrysler's future plans, Zetsche stressed. "We were looking for upside potential in terms of scale but it didn't happen," Zetsche said.
The Chrysler Group, however, still plans to provide Mitsubishi with a new compact pickup truck, the Raider, which has appeared recently in auto shows in both Detroit and Chicago. The problem facing Mitsubishi, however is that the stylish Raider will have compete in what has become the one part of the truck market that has shrunk in past five years.
Standing alone
Meanwhile, the bad new continues to pile up for Mitsubishi, which is now described as Japan's only unprofitable automaker. Earlier this month, the company lost an estimated $470 million during the three months that ended December 31. The loss was more than double the loss the company had posted in the same period a year before when it was widely assumed the company had already hit bottom. For the nine months ending in December 31, Mitsubishi Motors, which recently received a pledge of additional support from other Mitsubishi Group companies, had a net loss of $2 billion, compared with $1 billion for the same period. Total sales or revenue dropped twelve percent as sales dropped in both Japan and the United States, the company said.
In addition, Mitsubishi has agreed to pay DaimlerChrysler AG for hiding defects in trucks built by Mitsubishi Fuso Truck & Bus Corp. DaimlerChrysler bought 65 percent of Fuso from Mitsubishi Motors. DaimlerChrysler will receive 20 percent of the company from Mitsubishi Motors as compensation as well as $65 million.
Mitsubishi's management continues to try and salvage the situation by agreeing to build vehicles for other manufacturers. Nissan Motor Co. has announced plans to buy 36,000 minicars a year from Mitsubishi starting next summer and Mitsubishi also is planning to build 30,000 sport-utility vehicles a year for the French automaker Peugeot, beginning in 2007.
Mitsubishi also announced last week that it had hired Italdesign Giugiaro to design a new sport-utility vehicle, and hired David Schembri, a veteran executive with 30 years of experience, to head up its marketing operations in the United States, where executives and managers have been leaving the company since last fall.
http://www.thecarconnection.com/index.asp?article=8150
The ailing Mitsubishi Motor Corp. fended off reports that it was about to dump its American operations last week - but company officials have confirmed that a once-promising joint-development project undertaken with DaimlerChrysler has been shelved.
The struggling Japanese automaker flatly dismissed an elaborate report in the Wall Street Journal, suggesting the company was trying to find a buyer for its operations in the United States. The Journal reported that another automaker might be willing to take over the company's dealer network and that a buyer might even be found for its assembly plant in Normal, Illinois.
"The article in the Wall Street Journal stating that MMC is seeking a buyer for its operations in the U.S. is groundless. MMC's President, Osamu Masuko, and Non-Executive Member of the Board, Yasushi Ando, did not meet with representatives from Ripplewood Holdings LLC nor Magna International Inc. during the North American International Auto Show in Detroit," Mitsubishi said in an official statement that was drafted in Japan and distributed by the company's public relations representatives in the United States. Ripplewood Holdings and Magna were identified as the potential buyers of Mitsubishi's North American properties by the Journal.
"As announced on January 28, the U.S. is a very important market for the revitalization of MMC and thus the company has no intentions to exit this market. Additionally, the company has never pursued the possibility of exiting the U.S. market with potential third parties," the Mitsubishi officials added.
Chrysler coop cancelled
Officials from the Japanese automaker, however, did confirm that Mitsubishi has suspended development of a D-segment or mid-size car or crossover vehicle through its once thriving partnership with the Chrysler Group.
Dieter Zetsche, Chrysler Group president and chief executive officer, had told reporters that Chrysler and Mitsubishi had completed development of a common platform for the C-D segment. Mitsubishi, however, elected not to develop any of bodywork required to fill out their part of the project, Zetsche said. "Mitsubishi never put any of its future top hats on that platform," said Zetsche.
"Mitsubishi would still be welcome to use that platform," added Zetsche, who said Chrysler has moved ahead with its own D-segment vehicles from the same platform.
Mitsubishi's decision not to complete development of a vehicle will not have any impact on Chrysler's future plans, Zetsche stressed. "We were looking for upside potential in terms of scale but it didn't happen," Zetsche said.
The Chrysler Group, however, still plans to provide Mitsubishi with a new compact pickup truck, the Raider, which has appeared recently in auto shows in both Detroit and Chicago. The problem facing Mitsubishi, however is that the stylish Raider will have compete in what has become the one part of the truck market that has shrunk in past five years.
Standing alone
Meanwhile, the bad new continues to pile up for Mitsubishi, which is now described as Japan's only unprofitable automaker. Earlier this month, the company lost an estimated $470 million during the three months that ended December 31. The loss was more than double the loss the company had posted in the same period a year before when it was widely assumed the company had already hit bottom. For the nine months ending in December 31, Mitsubishi Motors, which recently received a pledge of additional support from other Mitsubishi Group companies, had a net loss of $2 billion, compared with $1 billion for the same period. Total sales or revenue dropped twelve percent as sales dropped in both Japan and the United States, the company said.
In addition, Mitsubishi has agreed to pay DaimlerChrysler AG for hiding defects in trucks built by Mitsubishi Fuso Truck & Bus Corp. DaimlerChrysler bought 65 percent of Fuso from Mitsubishi Motors. DaimlerChrysler will receive 20 percent of the company from Mitsubishi Motors as compensation as well as $65 million.
Mitsubishi's management continues to try and salvage the situation by agreeing to build vehicles for other manufacturers. Nissan Motor Co. has announced plans to buy 36,000 minicars a year from Mitsubishi starting next summer and Mitsubishi also is planning to build 30,000 sport-utility vehicles a year for the French automaker Peugeot, beginning in 2007.
Mitsubishi also announced last week that it had hired Italdesign Giugiaro to design a new sport-utility vehicle, and hired David Schembri, a veteran executive with 30 years of experience, to head up its marketing operations in the United States, where executives and managers have been leaving the company since last fall.
Feb 21, 2005, 06:29 AM
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"In addition, Mitsubishi has agreed to pay DaimlerChrysler AG for hiding defects in trucks built by Mitsubishi Fuso Truck & Bus Corp. DaimlerChrysler bought 65 percent of Fuso from Mitsubishi Motors. DaimlerChrysler will receive 20 percent of the company from Mitsubishi Motors as compensation as well as $65 million."
Ouch ^^
Ouch ^^
Feb 21, 2005, 10:10 AM
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And?...Nissan was 9 billion in debt before Renault bought them in the late 90's. Fuso will be out of Mitsu's hair now and the new car/truck line we'll be good too.
BUT, if all this goes to ****ze then I am glad that I got my EVO before they closed the doors, heheheh...by the way: 02 cents.
BUT, if all this goes to ****ze then I am glad that I got my EVO before they closed the doors, heheheh...by the way: 02 cents.
Feb 21, 2005, 10:19 AM
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Why does MItsubushi remind me of sega with less scandal. Besides the EVO everything else sucks. I am sure once the EVO 9 comes here that will put the nail in the coffin for the EVO since sales are down right now as it is. I dont get why people are saying yeah great if they go under I am glad I got one. Yeah just what i want more expensive parts and repairs. Guess the STI will start to dominate.
Feb 21, 2005, 10:57 AM
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on the flip side... you CAN sell your evo for MUCH more than its worth cuz it only came out 4yrs in the states, making it the rarest of the tuner cars. 
(once you get tired of it, of course...like thats gonna happen.)
(once you get tired of it, of course...like thats gonna happen.)
Feb 21, 2005, 12:22 PM
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Look at how many years Chrysler/Dodge was in debt and had terrible cars. In the late 70's they were so in debt that the government stepped in and helped out. In late December 1979 the Chrysler Corporation Loan Guarantee Act was passed. The act provided Chrysler with $1.5 billion in federal loan guarantees. The bailout kept Chrysler operating despite record losses of $1.7 billion in 1980.
That was alot of money back in the late 70's and early 80's. (Actually that is alot now) but there is still a Chrysler today. Just because a company is doing bad now doesn't mean they will just go away. Mistubishi just need to do a make over and bring out some better looking cars to help turn the sale around. It takes awhile for a company to this but I think with the change in management lately they are going to try.
And for the Evo to go up in value if Mitsu goes under....that is funny....That must be why the Yugo's are worth so much now
That was alot of money back in the late 70's and early 80's. (Actually that is alot now) but there is still a Chrysler today. Just because a company is doing bad now doesn't mean they will just go away. Mistubishi just need to do a make over and bring out some better looking cars to help turn the sale around. It takes awhile for a company to this but I think with the change in management lately they are going to try.
And for the Evo to go up in value if Mitsu goes under....that is funny....That must be why the Yugo's are worth so much now
Last edited by EMC2; Feb 21, 2005 at 12:29 PM.
Feb 21, 2005, 01:05 PM
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Hey Homestarrunner, I mean EMC2, hehehe....good point with the Yugo's but then Aluma has a point though. I mean the Evo's are great cars and are truly collectibles then, not some defunct weirdo mobile, hehehe.
;-)
;-)
