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The end for DSM????

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    The end for DSM????



    discuss

    '04 Titanium RX-8

    #2
    here's the full article for those too lazy to click on link:

    -------------------------------

    DaimlerChrysler to quit Mitsubishi

    Reuters / April 22, 2004


    STUTTGART, Germany -- 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, adding that the 37 percent stake would be booked as discontinued business until a buyer could be found.

    Mitsubishi representatives could not immediately be reached for comment.

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

    Supervisory board sources said earlier that the company had discussed selling its 10 percent stake in South Korea's largest carmaker Hyundai Motor Co. Ltd., worth about 850 million euros ($1 billion), to help fund the Mitsubishi rescue.

    Mitsubishi, Japan's fourth largest and only unprofitable carmaker, had been planning to present details of a 700 billion yen ($6.39 billion) bailout to shareholders on April 30.

    Reeling from losses generated by a disastrous strategy of offering cheap car loans in the U.S., Mitsubishi is expecting a net loss of 72 billion yen for the 12 months to March 31. It had a profit of 37.36 billion yen the previous year.

    Mitsubishi Motors' net automotive debt stood at around 726 billion yen six months ago, while total interest-bearing debt was 1.141 trillion.

    "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 Titanium RX-8

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      #3
      Well that sucks

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        #4
        Damn, no Dodge Colt Evo
        2006 Mazda 3 hatchback manual

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          #5
          i did not even know Mitsubishi was japan's bottom bitch. Hell don't they make the friggin' Evo? That is why i am a Mazda man
          <-why i can't fix my car

          http://www.revtvguam.com
          AFwestPunk's AutoJam Imagestation photo album! You better have High speed internet!

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            #6
            Wrong forum Hank!
            Clint/1999 "Sport20"

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              #7
              I wonder what's going to happen to the next gen Neon that was suppoed to be based off the next Lancer?
              Clint/1999 "Sport20"

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                #8
                I kind of saw this coming. Personally, I think Chrylser used Mitsu every way they know how, especially within the engine department. But Mitsu also brought it upon themselves. Their cars are not very appealing, and there is always a mixed reaction with regards to their quality. They need some serious overhauling and NOW.
                "Probable impossibilities are to be preferred to improbable possibilities."

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                  #9
                  well that blows. EVO's are cool, but I do have to agree that mitu's recent offerings are PURE ****. The standard lancer is a joke, the current eclipse looks like ass, the future eclipse looks a little outrageous and out of place. Their SUV's suck ass. The galant isn't competitive. What the hell did they expect?

                  Plus their prices for all of their cars aren't really competitive with the likes of nissan, mazda and other low priced offereings from hyundai. On top of that, they have a subpart reliability rating and "quality" rating.
                  93' Noble Green MX-ZE (sold )
                  02' Graphite Grey WRX Stage 4, 286whp
                  05' Pontiac Vibe daily driver, lowered/tinted/rims

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