According to Tom Phillips, Mitsubishi Motors Australia chief executive, AUD$600 million is to be invested in the Adelaide plant to build the new Diamante (Magna).
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| There's a history of automakers coming back from the brink of oblivion, but only time will tell if Mitsubishi is up to the task. (Photo: Mitsubishi Motors North America) |
At end of day Thursday, the markets liked what they heard and responded with a gain of 2.56 percent to 240 yen.
To make sure the automaker continues delivering positive news to shareholders MMC has announced it will appoint Hideyasu Tagaya, an executive officer who has been overseeing MMC's international operations, as president and COO under CEO and Chairman Yoichiro Okazaki, effective as of June 29. Okazaki will directly oversee a new "corporate restructuring committee" to be headed by an official from Phoenix Capital. Also, MMC will move its headquarters to Kyoto from Tokyo.
Will the investment and commitment to change be enough to turn the indebted automaker around? That will remain to be seen, however, the automotive world has seen quite a few examples of 180 degree reversals over the years, Nissan being the most recent and most successful. There is no reason why Mitsubishi Motors can't learn from those company's that have gone before, and never forget the mistakes it has made in the past as it moves forward.