Mitsubishi Gets Cash Infusion to Execute Restructuring Plan

The arrangement will fill a hole in Mitsubishi's production facilities too, and will prove integral to the Japanese

Mitsubishi has produced vehicles for Chrysler Group in the past and Nissan currently. (Photo: Mitsubishi Motors North America)

automaker's restructuring plans. PSA's CEO, Jean-Martin Folz, signed a Memorandum of Understanding for a partnership on all-new SUVs today.

Such a cooperative agreement for production is not unusual for Mitsubishi, having produced vehicles for Chrysler Group in the past and Nissan currently, and PSA is just beginning sales on a new subcompact designed together with Toyota. PSA has also worked with Fiat on the development and production of a compact SUV and Ford for diesel engines.

While SUV sales are growing in Europe, with 4x4 capable vehicles making up 6.2 percent of the overall new vehicle market, France lags behind slightly with only 5.5 percent that

A Mitsubishi-built Peugeot and/or Citroen SUV will bolster domestic French sales, and potential future North American sales. (Photo: Trevor Hofmann, Canadian Auto Press)

are off-road capable. This has much to do with PSA and Renault not offering any SUVs.

No matter what Mitsubishi and PSA do together, the lack of an SUV of French heritage will no longer be an issue when Renault, through its Korean subsidiary Samsung Motors, will offer one in 2007.

Not only will a Mitsubishi-built Peugeot and/or Citroen SUV bolster its domestic French sales, but in order to make its plans to return to the North American market a reality an sport utility vehicle will be paramount.