Mitsubishi Expected to Come Under Control of Private Fund

Despite New Improved Models Mitsubishi is Struggling in Sales Due to Less Aggressive Incentives

It's pretty difficult to find an automaker that hasn't been up against the ropes taking punches at one time or another. Each of the domestics either faced considerable

At one time or another almost every automaker has been up against the ropes taking punches, and at the moment that's where Mitsubishi finds itself. (Photo: Trevor Hofmann, Canadian Auto Press)

financial challenges at one time or another with at least two of the three still up to their necks in mire. While Toyota seems to have grown from strong to seemingly indestructible, it wasn't long ago that Mazda and Nissan were in dire need of rescue - both on the top of their game now.

Will we look back at Mitsubishi Motors Corp. (MMC) in the same light in future years? That remains to be seen, although the global automotive economy has shifted to the negative in recent years which will no doubt give the Japanese automaker even

It looks like private fund company Phoenix Capital will be Mitsubishi's knight in shining armor, to the tune of CAD$2.43 billion. (Photo: Trevor Hofmann, Canadian Auto Press)

greater challenges than its rivals had during their respective restructuring.

For the time being it looks as if the light is starting to shine from the end of the long dark tunnel, and the train is the private fund Phoenix Capital. If the fund takes control of MMC, it is expected to extend 200 billion yen (CAD$2.43 billion) to the struggling automaker, the Asahi Shimbun stated Friday.

The Japanese newspaper added that the new recovery plan would require the Mitsubishi group companies to provide approximately 250 billion yen (CAD$3.04 billion) over and above the 200 billion from Phoenix, which should be adequate capital to get MMC back on track financially.