Mitsubishi Gets Cash Infusion to Execute Restructuring Plan

As part of the deal, MMC's top three Japanese executives were forcefully retired. With the automaker looking to lose more than $4.3

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

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 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 it's independence? Mitsubishi Motor Corp. was separated from the other Mitsubishi brands in 1970, and has remained tied to the multinational giant by name

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, Canadian Auto Press)

only. Now, partly to protect the good name of Mitsubishi, executives from the Mitsubishi Group that 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.