Mitsubishi Motors Shareholders to Invest USD$3.93 Billion in Cash to Boost Japanese Automaker

Adding to the challenges for new model development, MMC will surely be forced to close one of its less utilized Japanese plants, with the Pajero (Montero in North

The Montero plant in Japan's Gifu prefecture will likely be shut down. (Photo: Mitsubishi Motors North America)

America) SUV plant in the Gifu prefecture likely the victim. The large SUV, a staple product at MMC, would be constructed at the automaker's Okayama facility.

Another decision MMC's new executive team, led by CEO Yoichiro Okazaki, will need to make is whether or not to continue forward with its Australian manufacturing base. The division has been responsible for the slow selling Diamante sedan, much in need of a complete makeover and losing sales to the much improved and larger Galant sedan.

Mitsubishi Motors Corp. said on Monday it had yet to reach a decision on what to do with its Australian operations after

The future of the slow selling Diamante and the Australian factory that builds it is also up in the air. (Photo: Shawn Pisio, Canadian Auto Press)

meeting with Australian officials earlier. The company met with Australian Federal Industry Minister Ian Macfarlane and South Australian Treasurer Kevin Foley in Tokyo earlier this week, and said in a statement, "We had useful and constructive discussions," adding "Any decision on the Australian operations will have to be made within the overall context of the ongoing revitalization of MMC, which is facing its toughest challenge ever." Of course the Australian government will be pushing MMC to remain committed to its Adelaide operations, being that it employs 3,400 people, but that will remain on much needed capital and how Australia fits into the automaker's overall restructuring plan.