[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Monday, 23 May, 2005, 06:13 GMT 07:13 UK
Losses widen at Mitsubishi Motors
Mitsubishi Colt
Mitsubishi's management is putting its faith in new models
Mitsubishi Motors, Japan's only unprofitable carmaker, has seen its full-year loss more than double as sales dropped at home and abroad.

The company has struggled to win back customers after it acknowledged that vehicle defects were hidden, and the faults were linked to two road deaths.

Its loss was 478.8bn yen ($4.4bn) in the 12 months to 31 March, from a shortfall of 215.4bn a year earlier.

Sales for the year slid 16% to 2.1 trillion yen from 2.5 trillion yen.

Long memories

Mitsubishi is doing its best to rebuild its reputation, but analysts said it will take a long time for consumers to forget the problems.

Profits also are unlikely to recover quickly, with Mitsubishi forecasting a 64 billion yen loss for the current fiscal year on sales of 2.2 trillion yen.

The company has had to rely on cash injections to keep operating, and was given $5.25bn earlier this year to shore up its balance sheet and finance the development of new cars.

It had previously been given a $4.8bn bailout by the Mitsubishi group and investment funds.

Mitsubishi is about 20% owned by DaimlerChrysler and was dealt a blow when the German-US carmaker refused to provide further financing.

The company's problems started in 2000 when government inspectors found a cache of complaints about Mitsubishi trucks hidden in a locker room.

Among the problems that were being reported and ignored were failing brakes, fuel leaks and malfunctioning clutches.


SEE ALSO:
Ex-bosses hit by Mitsubishi suit
30 Mar 05 |  Business
Scandal doubles Mitsubishi losses
08 Feb 05 |  Business
Ex-Mitsubishi heads deny cover-up
06 Oct 04 |  Business
Mitsubishi trucks may be grounded
12 Jul 04 |  Business
Former Mitsubishi boss arrested
10 Jun 04 |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific