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drdingo21 · 04-22-2004, 07:07 PM

I pulled this off another site. But If you've been following auto industry news for the past week or 2, you might have read about Mitsubishi Motors' terrible financial condition. It has been widely assumed that DaimlerChrysler would bail them out and take a majority stake in the company. This was officially supposed to happen on April 30.

I just read news that has made my jaw drop. Heres the article:
DaimlerChrysler to quit Mitsubishi
DaimlerChrysler AG said on Thursday it was pulling out of Mitsubishi Motors, leaving its bid to become a global carmaker in disarray and throwing the future of the ailing Japanese firm into doubt.

The group said that it had decided not to participate in a rescue capital increase planned by Mitsubishi Motors Corp. because it could not agree on an acceptable deal with other shareholders in the loss-making company.

It also said it would not provide any further financial support to Mitsubishi, Japan's only unprofitable carmaker.

"This clearly means separation," a DaimlerChrysler spokesman said.

The decision came after an extraordinary meeting of the DaimlerChrysler supervisory and management boards on Thursday.

"This could be the end for Mitsubishi if nobody else injects fresh capital," said one industry source.

DaimlerChrysler bought the stake in Mitsubishi over three years ago with a view to expanding its presence in Asia. It has since worked to establish closer production ties between the Japanese firm and its other problem child, U.S. automaker Chrysler, to cut costs.

04-22-2004, 07:07 PM	#1
drdingo21 Registered User Join Date: Aug 2002 Location: Elkhart, IN Age: 42 Posts: 1,642	Goodbye Mitsubishi cars? I pulled this off another site. But If you've been following auto industry news for the past week or 2, you might have read about Mitsubishi Motors' terrible financial condition. It has been widely assumed that DaimlerChrysler would bail them out and take a majority stake in the company. This was officially supposed to happen on April 30. I just read news that has made my jaw drop. Heres the article: DaimlerChrysler to quit Mitsubishi DaimlerChrysler AG said on Thursday it was pulling out of Mitsubishi Motors, leaving its bid to become a global carmaker in disarray and throwing the future of the ailing Japanese firm into doubt. The group said that it had decided not to participate in a rescue capital increase planned by Mitsubishi Motors Corp. because it could not agree on an acceptable deal with other shareholders in the loss-making company. It also said it would not provide any further financial support to Mitsubishi, Japan's only unprofitable carmaker. "This clearly means separation," a DaimlerChrysler spokesman said. The decision came after an extraordinary meeting of the DaimlerChrysler supervisory and management boards on Thursday. "This could be the end for Mitsubishi if nobody else injects fresh capital," said one industry source. DaimlerChrysler bought the stake in Mitsubishi over three years ago with a view to expanding its presence in Asia. It has since worked to establish closer production ties between the Japanese firm and its other problem child, U.S. automaker Chrysler, to cut costs.