Mitsubishi cuts jobs..
May 24, 2004, 01:00 AM
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Mitsubishi cuts jobs..
anyone post this yet?
http://www.usatoday.com/money/autos/...tsubishi_x.htm
Mitsubishi turnaround plan shaves 11,000 jobs
By David Kiley, USA TODAY
DETROIT — Mitsubishi Motors will cut about 11,000 jobs, a quarter of its workforce, and close two plants as part of a turnaround plan aimed at returning it to profitability.
The effects in the USA aren't clear yet, although the company is not closing its Bloomington, Ill., assembly plant.
The Japanese automaker is reeling from costly recalls, coverups of quality problems, a loan-writing scandal in the USA and withdrawal of support by part-owner DaimlerChrysler.
Mitsubishi said Friday that it lost $1.9 billion in the latest fiscal year, which ended March 31. That's a reversal from a profitable 2002 and triple the loss forecast in February. The automaker's revenue was down 35% to $22 billion.
Mitsubishi CEO Yoichiro Okazaki laid out plans for a turnaround to profitability by fiscal 2005 and healthy profits by 2007 but predicted $2 billion in losses for the current fiscal year.
Mitsubishi Motors is receiving a $4 billion bailout package from Mitsubishi Corp., Mitsubishi Tokyo Financial Group, Mitsubishi Heavy Industries and Phoenix Capital, a Tokyo venture fund.
DaimlerChrysler, which had owned 37% of Mitsubishi, withdrew a $3.8 billion rescue proposal last month. The new plan reduces DaimlerChrysler's stake to 22% because of new equity issued to the Japanese companies.
Keys to the turnaround plan:
•Lower costs. In addition to the workforce cuts, an engine plant in Austria and an assembly plant in Japan are closing.
•Accelerate business in China. Mitsubishi will push to increase share of a quickly growing market.
•Return North America to profitability again. Lower costs and a more effective marketing strategy are critical.
Mitsubishi's sales in the USA this year are down 23%. Sales of its newest redesigned model, the 2004 Galant sedan, are down 35%.
Finbarr O'Neill, Mitsubishi's U.S. CEO, said the turnaround plan, announced in Tokyo Friday, will help the U.S. operation.
"We now have the financial backing to ensure a successful turnaround in the North American market," said O'Neill, who joined the company last fall after leading a turnaround of Hyundai in the USA.
In recent years, Mitsubishi's advertising has featured edgy music and young drivers. "We went too young, to the point where families didn't see themselves in our family cars," O'Neill says.
Okazaki has acknowledged that Mitsubishi's future is threatened. "Mitsubishi Motors is facing its toughest challenge ever, one that threatens the very existence of the company," he said as he was nominated to be CEO in February.
http://www.usatoday.com/money/autos/...tsubishi_x.htm
Mitsubishi turnaround plan shaves 11,000 jobs
By David Kiley, USA TODAY
DETROIT — Mitsubishi Motors will cut about 11,000 jobs, a quarter of its workforce, and close two plants as part of a turnaround plan aimed at returning it to profitability.
The effects in the USA aren't clear yet, although the company is not closing its Bloomington, Ill., assembly plant.
The Japanese automaker is reeling from costly recalls, coverups of quality problems, a loan-writing scandal in the USA and withdrawal of support by part-owner DaimlerChrysler.
Mitsubishi said Friday that it lost $1.9 billion in the latest fiscal year, which ended March 31. That's a reversal from a profitable 2002 and triple the loss forecast in February. The automaker's revenue was down 35% to $22 billion.
Mitsubishi CEO Yoichiro Okazaki laid out plans for a turnaround to profitability by fiscal 2005 and healthy profits by 2007 but predicted $2 billion in losses for the current fiscal year.
Mitsubishi Motors is receiving a $4 billion bailout package from Mitsubishi Corp., Mitsubishi Tokyo Financial Group, Mitsubishi Heavy Industries and Phoenix Capital, a Tokyo venture fund.
DaimlerChrysler, which had owned 37% of Mitsubishi, withdrew a $3.8 billion rescue proposal last month. The new plan reduces DaimlerChrysler's stake to 22% because of new equity issued to the Japanese companies.
Keys to the turnaround plan:
•Lower costs. In addition to the workforce cuts, an engine plant in Austria and an assembly plant in Japan are closing.
•Accelerate business in China. Mitsubishi will push to increase share of a quickly growing market.
•Return North America to profitability again. Lower costs and a more effective marketing strategy are critical.
Mitsubishi's sales in the USA this year are down 23%. Sales of its newest redesigned model, the 2004 Galant sedan, are down 35%.
Finbarr O'Neill, Mitsubishi's U.S. CEO, said the turnaround plan, announced in Tokyo Friday, will help the U.S. operation.
"We now have the financial backing to ensure a successful turnaround in the North American market," said O'Neill, who joined the company last fall after leading a turnaround of Hyundai in the USA.
In recent years, Mitsubishi's advertising has featured edgy music and young drivers. "We went too young, to the point where families didn't see themselves in our family cars," O'Neill says.
Okazaki has acknowledged that Mitsubishi's future is threatened. "Mitsubishi Motors is facing its toughest challenge ever, one that threatens the very existence of the company," he said as he was nominated to be CEO in February.
May 24, 2004, 04:44 AM
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Originally Posted by d3wu
anyone post this yet?
http://www.usatoday.com/money/autos/...tsubishi_x.htm
Keys to the turnaround plan:
•Lower costs. In addition to the workforce cuts, an engine plant in Austria and an assembly plant in Japan are closing.
•Accelerate business in China. Mitsubishi will push to increase share of a quickly growing market.
•Return North America to profitability again. Lower costs and a more effective marketing strategy are critical.
.
http://www.usatoday.com/money/autos/...tsubishi_x.htm
Keys to the turnaround plan:
•Lower costs. In addition to the workforce cuts, an engine plant in Austria and an assembly plant in Japan are closing.
•Accelerate business in China. Mitsubishi will push to increase share of a quickly growing market.
•Return North America to profitability again. Lower costs and a more effective marketing strategy are critical.
.
Laff, they never mention anything about improving build quality of their vehicles eh?
May 24, 2004, 05:05 AM
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"We went too young, to the point where families didn't see themselves in our family cars,"
they also realized 2 fast 2 furious was the greatest marketing strategy
they also realized 2 fast 2 furious was the greatest marketing strategy
Last edited by d3wu; May 24, 2004 at 05:10 AM.
May 24, 2004, 12:40 PM
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Originally Posted by MaxR
Mitsubishi doesn't have an engine plant in Austria. That suggests the whole article is a dis-information campaign. You have to expect that kind of propaganda considering Honda is the majority owner of USA Today.
May 24, 2004, 12:55 PM
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honda owns USA today? INTERESTING... next thing u know, USA today is going to claim HONDA accords have become the best sedan of all time... (not to say its not far from the truth) hehe
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May 24, 2004, 01:17 PM
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Mitsubishi doesn't have an engine plant in Austria. That suggests the whole article is a dis-information campaign. You have to expect that kind of propaganda considering Honda is the majority owner of USA Today.
2. Honda is in NO WAY related to USATODAY. it is owned by the Gannett company, which is a publication company. so were do you come up with this stuff??
Last edited by mprtklr; May 24, 2004 at 01:19 PM.
May 24, 2004, 01:45 PM
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Like I always say, if your gonna have a conspiracy theory, you should go really, really big.
Now THAT is a conspiracy theory! 
Originally Posted by MaxR
Mitsubishi doesn't have an engine plant in Austria. That suggests the whole article is a dis-information campaign. You have to expect that kind of propaganda considering Honda is the majority owner of USA Today.
May 25, 2004, 05:18 PM
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well i just got hired by Yorktown Mitsubishi for the summer to drive cars to and from dealerships for swaps, etc. so i guess Mitsu let off 10,999 jobs hehe. hopefully it will help me to get a good deal on an Evo in the next 10months.
May 25, 2004, 06:11 PM
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Originally Posted by D0WNxSH1FT
well i just got hired by Yorktown Mitsubishi for the summer to drive cars to and from dealerships for swaps, etc. so i guess Mitsu let off 10,999 jobs hehe. hopefully it will help me to get a good deal on an Evo in the next 10months.
dealerships are independant companies from mitsubishi. the 11,000 jobs come from factories, buisness offices, and such..
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