Sun, Jan 23, 2005 - Page 11 News List

Top executives not going to resign, Mitsubishi Co says

AFP , TOKYO

Troubled Mitsubishi Motors said yesterday it was devising new revival plans such as enhancing its capital while denying a report top executives would resign for failing to turn the company around.

"It is not true," the company said in a statement, referring to a Nihon Keizai Shimbun report that the top management would likely resign by the end of March.

The economic daily said yesterday chairman Yoichiro Okazaki, vice Chairman Koji Furukawa and president Hideyasu Tagaya were likely to resign to take responsibility for the failure of a multi-million yen turnaround plan crafted last May.

Denying the report, Mitsubishi Motors stressed it was now drawing up a new set of revival measures "for stabilizing business and enhancing financial health over a medium and long term."

"We are now making close examination of tie-ups and collaboration strategies [with other automakers] as well as financial reinforcement measures such as capital enhancement," it said.

The company is to unveil the new revival plans by the end of this month.

Earlier reports have said Mitsubishi Motors would likely receive 250 billion yen (US$2.4 billion) in extra aid from group firms as part of its new restructuring plan.

The fourth-largest Japanese car maker, reeling from a series of vehicle defect cover-ups, received 496 billion yen in fresh capital last year from the three Mitsubishi firms and other investors under the initial revival plan.

However, the capital injection did little to boost Mitsubishi's financial standing as sales remained sluggish throughout the fiscal year 2004.

Business partner DaimlerChrysler AG decided not to inject any fresh funds into Mitsubishi Motors.

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