Mitsubishi Gets Cash Infusion to Execute Restructuring Plan

Mitsubishi Heavy Industries Ltd. is joined by Mitsubishi Corp and Mitsubishi Tokyo Financial Group Inc. in a combined

The Mitsubishi group feels strongly about the automaker's long-term potential. (Photo: Shawn Pisio, Canadian Auto Press)

investment of $2.63 billion into MMC for new stock. Not only does this latest investment bolster MMC's coffers, but it also shows the Mitsubishi group feels strongly about the automaker's long-term potential.

"As you know, MMC is severely injured," Nishioka commented,"But I believe that with the proper management, this company has a bright future."

Not all feel this way, however, with some are spreading doom and gloom for MMC's future, with fiscal 2004/2005 only appearing to include a projected 1.337 million vehicles sold, 190,000 fewer vehicles than the 1.4 million units the automaker forecast back in November, it shouldn't be forgotten that 1.337 million individuals felt Mitsubishi a good enough

Mitsubishi has struck a deal with France's PSA Peugeot-Citroen to manufacture all new sport utility vehicles. (Photo: Trevor Hofmann, Canadian Auto Press)

investment to spend their hard earned money on.

Mitsubishi, and its employees, should focus on this fact rather than the sales it is missing compared to last year or the year before that. While comforting to some, this knowledge will do little to appease concerns by those set to be laid off when the company follows through with its plan to reduce its workforce even further than it did last year.

The depth of MMC's cuts will be lessened, however, by recent news that a deal has been struck with France's PSA Peugeot-Citroen to manufacture all new sport utility vehicles. MMC's experience in building four-wheel drive systems as well as SUVs is an ideal fit for PSA, and new sport utility vehicles will fill holes the French company's dual brand lineup.