Noticed this on GoAutos. Doesn't look good for Mitsubishi-Motors Australia.
"IT was never going to be easy to turn Mitsubishi around. There was never going to be a quick fix that anyone could immediately see. Apart from hard work. But the board of DaimlerChrysler found one. Walk away.
This has been the dramatic conclusion made by the board of DaimlerChrysler after hearing from Andreas Renschler, who was sent by DC to Tokyo to work on the third turnaround plan in four years. They did not even wait until the plan was to be presented on April 30 at the Mitsubishi Motors Corporation shareholders meeting. At that meeting the turnaround plan was to be presented and at that time the future of Mitsubishi Motors Australia Limited as a manufacturer was to be announced as well.
But the Germans, who have been in charge during the most disastrous period in recent MMC history,have tossed in the towel and in so doing leave tens of thousands of workers and their families swinging in the wind worldwide. What will be announced next Friday is anyone’s guess. But you can be sure there will be a swag of DC people offering their resignations from MMC at the meeting.
At this stage, MMC is not even commenting. It has clearly come as a massive shock that DC has decided it will not put another dollar into the company and has decided to book the $US2 billion it paid for the 37 per cent stake in MMC as “discontinued business” while it seeks a buyer for its MMC shares.
The move follows a massive bollocking over Mitsubishi for the DC directors, and for CEO Jergen Schrempp in particular, at the annual meeting in Berlin earlier this month. Stung by shareholders describing MMC as a black hole into which DC was pumping money, the board “decided not to participate in a capital increase planned by Mitsubishi Motors and to cease further financial support”.
The company told Bloomberg it could not find a solution to the “earnings collapse” at MMC. The decision is a remarkable turnaround given that it was widely expected that Renschler would be taking over the reigns at MMC from Rolf Eckrodt.
For a full report, go to www.professional.goauto.com.au."
Well i hope not as there will be many that will lose their jobs, i was reading an article in yesterdays Melbourne Herald Sun " Lifeline for car giant" Hopes grew last night that thousands of Australian car industry jobs would be saved.
The ailing car giant Mitsubishi was thrown a lifeline by its corporate parents after earlier appearing on the verge of disaster.
Mitsubishi Motors Australian President Mr Tom Phillips received news from Japan of a survival plan and said " I believe Mitsubishi Motors Australia will survive and prosper to become a major player in a more successful company"
I'm glad to hear that otherwise up to 20,000 auto industry jobs would be at risk if the plant would close
Cheers John
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What do you expect, ? Everyone panned the AU, but the new Magna is waaaaaaaaay uglier. No wonder sales are down 21% on last year. Didn't they do a customer survey on the styling, before putting it into production ?
Maybe Chrysler will build the 300CM, here.
Can you hear the drums Fernando (Mitsubishi)?
There are alot of Chryslers I'd like to see here... from the 300M to the Viper (up to date model please - and a bank vault to afford one) and Intrepid, among others.
Shock about Mistubishi Motors though, especially after the success of some of their previous cars. Who doesn't see a Mirage or Lancer or Magna every time you drive?
Tim
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When Mitsu' decided to delay the updates to the Magna to save money they effed up big time. As a corporation they need a really big shake up product wise. They have inherent design philosophies that are just plain wrong and if they attempt to make a Falcon/Commode competitor they can expect to go the way of Toyota and their stillborn Avalon.
I've known senior people at Mitsi's and they have said the writting has been on the wall for many years! It was the fleets that kept them alive more than anyone else and now they're paying for it big time. They got bland and lazy and this won't stop in the near future either.
Even our illustrious premier Mike Rann passed a policy to all gov't fleets to buy no less than 75% Magna's... now, what does that say to you!
Even our illustrious premier Mike Rann passed a policy to all gov't fleets to buy no less than 75% Magna's... now, what does that say to you!
Our govt department has stated that we must buy SA-built cars/wagons (well, the policy is "no Fords", but that's the thinking behind it.)
So given the choice of SA made cars, I'm quite happy with the Premier's policy! One of our rural based guys just replaced his VY with a new Magna, and is happy as a pig in the proverbial. Loves it.
Maybe I should try and sneak a Territory in next time we replace our 4WD - it has to be better than buying something from overseas.
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I'm sorry, you seem to have mistaken me for someone who gives a fat rat's behind.
I just saw the Mitsubishi ad watching the car racing on channel 10 today and noticed the song used on the ad was from Effenesence and uses the line "SAVE ME" and I thought how ironic. It also used the slogan "There is no finish line" and I thought that may not be true for too long.
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