Most likely the plan won't call for the close of Mitsubishi Motors North America's (MMNA) Normal, Illinois plant, which produces the Galant sedan and Endeavor SUV, those vehicles being integral to the U.S. division's survival, but talk of 20 percent workforce cuts outside of Japan could affect North American operations. Domestic Japanese job cuts are expected to reach 10 percent.
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| Even though the Galant sedan and Endeavor SUV are helping keep Mitsubishi afloat, the factory that builds them probably won't escape some job cuts. (Photo: Alexandra Straub, Canadian Auto Press) |
For the much needed capital infusion MMC immediately refocused its attention on its other major shareholders, which include trading house Mitsubishi Corp., machinery maker Mitsubishi Heavy Industries, and the Bank of Tokyo-Mitsubishi.
If the source is to be believed, the plan to be officially announced Friday will include investment by the three companies for 40 billion yen of newly issued preferred shares each, while additional Mitsubishi group companies will divide a combined 30 billion plus yen.
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| Mitsubishi Motors is expecting a cash infusion from its current shareholder group. (Photo: Trevor Hofmann, Canadian Auto Press) |
In the end the Mitsubishi group, a combined 32 percent stakeholder in MMC, will hold 150 billion yen of the capital infusion, while BTM and Mitsubishi Trust & Banking Corp. is expected to trade up to 200 billion yen of debt into preferred shares, according to the source.
As previously reported (16/5/2004: Mitsubishi Expected to Come Under Control of Private Fund) MMC's ownership group has been at the negotiating table with Phoenix Capital for additional capital. As stated, Phoenix is closely tied to Mitsubishi Tokyo Financial Group, owner of BTM and Mitsubishi Trust & Banking.