Sux for them. I hope that turnaround they keep talking about is around the corner cause they need help fast.Wednesday, February 9, 2005
Losses at Mitsubishi double
The firm's recall cover-up scandal causes sales to fall further than in 2003.
By Yuri Kageyama / Associated Press
TOKYO -- Losses at Japanese automaker Mitsubishi Motors Corp. more than doubled to about $2 billion in the first nine months of its current fiscal year, as sales slid amid a recurring recall cover-up scandal.
Mitsubishi Motors also said Tuesday it had reached a preliminary agreement over compensation being sought by key shareholder DaimlerChrysler AG for financial damages arising from the repeated scandals.
Mitsubishi Motors said the preliminary pact calls for it to transfer the remaining 20 percent stake it owns in Mitsubishi Fuso Truck and Bus Corp., raising DaimlerChrysler's stake in the Tokyo-based truck maker to 85 percent from the current 65 percent.
Dow Jones Newswires reported that DaimlerChrysler will get additional cash compensation of about 200 million euros to 250 million euros ($255 million to $319 million).
Neither Mitsubishi Motors nor the German automaker would say how much cash Mitsubishi would pay under the settlement agreement.
Tokyo-based Mitsubishi Motors reported on Tuesday it lost 228 billion yen ($2 billion) for the April-December period, worse than the 103 billion yen loss it racked up in the same period the previous year.
Sales dropped 12 percent to 1.6 trillion yen ($15 billion) for the three quarters, down from 1.8 trillion yen the previous year.
Mitsubishi Motors has been struggling for a decade to boost sales and fight recurring scandals. It appeared to be on a turnaround under an alliance with DaimlerChrysler for a few years, but has been back in deep financial trouble after the German automaker withdrew additional financing last year.
Mitsubishi Motors, which did not break down quarterly earnings figures, kept unchanged its forecast for the full fiscal year ending March 31 for a loss of 472 billion yen ($4.5 billion) on sales of 2.04 trillion yen ($19.5 billion