Mitsubishi Motor Corp., Japan’s only unsuccessful automobile manufacturer, has undergone several key changes, in recent weeks.
DaimlerChrysler Corp., which owns 37 percent of the company, announced its plans to increase that stake to 50 percent, said a Reuters report.
The deal could be accomplished as early as next year. DaimlerChrysler hopes to secure $6.6 billion in rescue funds to aid the ailing Japanese OEM, which suffered disastrous losses in its strategy to boost U.S. sales through easy auto loans. However, sources said that figure could be lower, depending on support received by shareholders and others willing to help.
The two-stage plan focuses on capital infusion by its main shareholders, which, aside from DaimlerChrysler, includes Mitsubishi Heavy Industries, Mitsubishi Corp. and Bank of Tokyo-Mitsubishi.
In the first stage, $3.09 to $3.49 billion would be extended to the group by the end of the year, with DaimlerChrysler shouldering roughly two-thirds of that aid, said Nihon Keizai Shimbun, Japan’s leading financial news group. The remaining amount will come from the Mitsubishi companies. In the second stage, Daimler-Chrysler alone would provide the financing.
Still, as a result of the news, Mitsubishi saw its shares increase by five percent on April 12. Final details of its restructuring will be unveiled on April 30.