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Last Updated: Wednesday, 14 April, 2004, 16:45 GMT 17:45 UK
Mitsubishi confirms share plans
Mitsubishi Fuso Truck
Mitsubishi has been hit by low US sales and scandal
Mitsubishi Motors has confirmed it will seek shareholder approval to issue new shares worth 700bn yen ($6.67bn) to raise cash for a revival plan.

Shares in the struggling car company rose 1.5% on Wednesday, despite the Tokyo markets' overall downward trend.

Mitsubishi refused to confirm reports that shares will be sold to the Mitsubishi Group and DaimlerChrysler, the owner of 37% of the firm.

The revival plan will be revealed at a shareholders' meeting on 30 April.

New executive

Mitsubishi - Japan's only unprofitable carmaker - has seen declining US sales and scandals relating to the recall of vehicles in the US and Japan.

On 9 April this year it announced the recall of 81,531 cars for faulty wheels.

In 2000 it confessed to failing to inform authorities about 64,000 customer complaints about faulty vehicles going back to 1977.

The company is also recovering from a unsuccessful strategy of offering easy car loans in the US.

Mitsubishi has said Daimler top executive Eckhard Cordes would join its board as a non-executive member, if shareholders approve.

Mr Cordes is credited with reviving Daimler's commercial vehicles division.

Daimler has stressed it has not yet reached a decision on whether or not to invest more money in Mitsubishi.

But such a move would continue its strategy to raise its presence in the Asian market and to save money on development and production costs.




SEE ALSO:
'Extra cash' boost for Mitsubishi
13 Apr 04  |  Business
Mitsubishi ditches sales chief
02 Apr 04  |  Business
New Colt lifts Mitsubishi's gloom
11 Mar 04  |  Business
Mitsubishi racks up huge losses
11 Nov 03  |  Business


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