Attn: Mitsu Fans

You better get your Evos now, because Mitsubishi doesn't seem like they are gonna make it.

Mark

Mitsubishi Motors is in a giant hole. Chysler spent years pumping dollars into them without seeing any benefit. DiamlerChysler is (was) pumping billions into the company without improvement.

Basically, DCX said they will not increase their stake in Mitsu. Without cash from somewhere, they are dead in the water.

Unfortunately, the Evo is a pricey, low-volume car. That means its mostly likely on the chopping block.

Mark

http://www.detnews.com/2004/autosinsider/0404/27/autos-132297.htm


Mark

The other Mitsubishi group companies as well as the Japanese gov't will probably bail them out.

However, that doesn't address their underlying quality issues, which is a big reason that they are in such a hole.

Mark

odds are Chrysler or someother company is going to wait for them to declare bankrupcy and then buy them out at like .10 cents to the dollar or something

DaimlerChysler was planning on buying them (at least controlling share), but just the rumour of that dropped their stocks in 1 day... they have since dropped that idea.

DiamlerChrysler isn't going to do anything, that is the point. They have been involved with Mitsu for years now. All they have been doing is throwing good money after bad.

Mark

I read that Mitsubishi sold a TON of cars to younger buyers by easing their loan requirements. When all of the kids defaulted on their loans, the company lost BIG.

Bummer for Mitsu.

To kids, homeless bums, derilects, Mexicans... anybody.

Mark