Reports that DaimlerChrysler is pulling out of Mitsubishi Motors are unfounded, DCSA group media manager Deon Ebersohn told CARtoday.com on Friday.
Reports that DaimlerChrysler is pulling out of Mitsubishi Motors are unfounded, DCSA group media manager Deon Ebersohn told CARtoday.com on Friday.
CARtoday.com recently reported that DaimlerChrysler’s Smart division president Andreas Renschler would be leading a R30-billion reorganisation programme at Mitsubishi Motors.
But on Thursday, quoted a spokesman for the group as saying said that DaimlerChrysler had decided not to participate in a rescue capital increase planned by Mitsubishi Motors because it could not agree to an acceptable deal with other shareholders in the Japanese manufacturer’s group.
The report said DaimlerChrysler would not provide any further financial support to Mitsubishi, throwing the future of the ailing Japanese firm into doubt.
“This clearly means separation,” a DaimlerChrysler spokesman told , adding that the 37 per cent stake would be booked as discontinued business until a buyer was found.
In reaction, Ebersohn said that DaimlerChrysler had made an executive decision to restrict further investment in Mitsubishi Motors. “There is no truth in reports that DaimlerChrysler will sever its ties with, or sell its stake in, Mitsubishi Motors,” he said.
“As far as DaimerChrysler SA is concerned, it is business as usual. Mitsubishi remains a division of the local subsidiary of DaimlerChrysler and will remain so for the foreseeable future,” he added.
Nevertheless, Mitsubishi Motors of Japan’ financial maladies continue. One industry source told : “It could be the end for Mitsubishi if nobody else injects fresh capital”.
The news agency noted that DaimlerChrysler bought the stake in Mitsubishi over three years ago with a view to expanding in Asia and the decision to cut its losses will pile pressure on the multinational’s chief executive, Juergen Schrempp, who faced calls to resign at the annual shareholder meeting on April 7.
US-based auto industry analyst David Healy told Reuters it looked as if group board members had “finally rebelled against Schrempp’s pouring money down that financial black hole.”
Schrempp was expected to provide further details of the strategic U-turn at the weekend, the report said.
