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Deal with PSA Peugeot-Citroen to Build SUVs will Bolster Mitsubishi Production Operations

Mitsubishi Gets Cash Infusion to Execute Restructuring Plan

Mitsubishis tri-diamond logo and bold block lettered brand name shows up just about everywhere. From televisions, computer equipment, heavy machinery, electrical machinery, precision machinery, pulp and paper, metal products, chemicals, heavy-duty trucks, financial services, insurance, and cars of course.

And then there are the companies that it owns which dont share its branding, such as Nikon, Kirin Brewery, Nippon Oil, plus hotels, textiles and apparel manufacturers, a temporary work agency, and the list goes on. Check it out for yourself at www.mitsubishi.com

The the sheer number of business verticals Mitsubishi Corp. is involved in is astounding. (Photo: Trevor Hofmann, American Auto Press)

(press Mitsubishi Companies at top); the sheer number of business verticals it is involved in will astound you, let alone the many companies within those categories.

The only division that gets mentioned within these pages on a regular basis is its car arm Mitsubishi Motors Corp. (MMC), of course,

Money wont be a problem for Mitsubishi Motors Corp. anymore, at least for the short term. (Photo: Trevor Hofmann, American Auto Press)

and lately not only for its dynamically engaging cars, SUVs and now light trucks, but also for its questionable business practices and associated money woes.

Money wont be a problem anymore, at least for the short term. A $5.25 billion USD line of credit has been granted to the automaker, although the structure of this second major bailout within the last 12 months, could spell the end of

While a $5.25 billion USD line of credit has been granted to the automaker, it could spell the end of Mitsubishis independence as an automaker. It will, however, give the MMC enough capital to spend on new models. (Photo: Trevor Hofmann, American Auto Press)

Mitsubishis independence as an automaker.

As part of the deal, MMCs top three Japanese executives were forcefully retired. With the automaker looking to lose more than $4.3 billion USD by March 31, its fiscal year end, only 500 million USD shy of the 4.8 billion USD investment it received from Mitsubishi Group, Phoenix Capital and others last year, the latest investment is critical to pay for new

Mitsubishi Motor Corp. was separated from the other Mitsubishi brands in 1970, and has remained tied to the multinational giant by name only. (Photo: Trevor Hofmann, American Auto Press)

models, continue restructuring, and service debt.

One of those debts is more of a compensation package totaling about $80 million USD, money that needs to be paid to DaimlerChrysler for damages is incurred by being involved in Mitsubishi Fuso Truck & Bus Corp.

So why will it lose its independence? Mitsubishi Motor Corp. was separated from the other Mitsubishi brands in 1970, and has remained tied to the multinational giant by name only. Now, partly to protect the good name of Mitsubishi, executives from the Mitsubishi Group that

The Mitsubishi group feels strongly about the automakers long-term potential. (Photo: Shawn Pisio, American Auto Press)

originally owned the automotive division, have assumed the leadership positions within the automaker. Altogether, three Mitsubishi group companies will collectively hold 34 percent of MMC.

Chairman of Mitsubishi Heavy Industries Takashi Nishioka is taking over as CEO of MMC while remaining as chairman of Mitsubishi Heavy, and MMC managing director in charge of overseas operations Osamu Masuko, a Mitsubishi Corp. insider, will assume the position of chief operating officer.

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