Print

Mail

wiki links

Shareholders criticize Mitsubishi Motors

Cash-strapped Japanese automaker Mitsubishi Motors Corp faced angry questions from shareholders yesterday as officials tried to assure them a revival plan was in the works despite partner DaimlerChrysler's decision to abandon the effort.

Some of the more than 300 shareholders at the company's Tokyo headquarters said they were worried that the automaker may collapse. Although challenging questions at Japanese shareholders' meetings are relatively rare, several shareholders raised doubts about prospects for a comeback and scolded executives for not doing enough.

Often raising their voices, they pointed to the surprise decision by the German automaker last week not to give further financial support to Japan's No. 4 automaker, as well as to the recurring scandals about defect cover-ups that have sent sales plunging and damaged the company's image.

"The automaker is on a precipice of crisis," 71-year-old shareholder Hiroshi Koike said after the meeting. "The big question is how quickly the company can win back trust from consumers."

The shareholders at the meeting, which was shown to reporters through TV monitors, voted on two resolutions -- issuing new shares and board appointments -- that had been on the agenda before DaimlerChrysler's decision to pull out of the turnaround plan.

And they wanted an apology and an explanation.

President and chief executive Rolf Eckrodt, who was sent by DaimlerChrysler in 2001 to lead Mitsubishi Motors, resigned Monday and was not present. Keiichiro Hashimoto, chief financial officer, presided over the meeting.

"We thought we had set the correct direction for revival," Hashimoto told shareholders, adding that a DaimlerChrysler team had arrived in February to hammer out a plan. "The decision by DaimlerChrysler came as a shock to our company."

DaimlerChrysler, the top shareholder, with a 37 percent stake, said last week it had decided against pumping more money into Mitsubishi Motors, dashing hopes that yesterday's meeting would unveil a massive bailout plan.

But the Mitsubishi group companies have promised to stand behind the automaker. Mitsubishi Heavy Industries owns 15 percent of the automaker, trading company Mitsubishi Corp a 5 percent stake, and Bank of Tokyo-Mitsubishi 3 percent.

Hashimoto said a new plan without DaimlerChrysler cash would be worked out by mid-month. He did not say how much money the Mitsubishi group had promised.

In reply to a shareholder's question, he denied a report yesterday in the business daily Nihon Keizai Shimbun that Toyota Motor Corp, Japan's leading automaker, may provide some financial backing for Mitsubishi Motors.
This story has been viewed 1779 times.