Mitsubishi group companies vowed yesterday to stick by struggling Mitsubishi Motors after Daimler-Chrysler said it had given up on the auto maker and would try to sell its 37 percent stake. \nThe decision by the German-American company, which took even Mitsubishi Motors by sur-prise, left its strategy to become a global car maker in disarray and threw the future of the money-losing Japanese firm into doubt. \nDaimlerChyrsler said on Thursday it would not participate in a rescue capital increase planned by Mitsubishi Motors Corp (MMC) because it could not agree on an acceptable deal with other shareholders in the Mitsubishi group. \nIt also said it would not provide any further financial support to Mitsubishi, the only unprofitable carmaker in Japan. \nBut three Mitsubishi group firms -- Mitsubishi Heavy Industries, Mitsubishi Corp and Bank of Tokyo-Mitsubishi -- said they would continue to support the company. \nThe three hold a combined 23 percent stake in MMC. \nA DaimlerChrysler spokesman in Germany said the company's stake in Mitsubishi Motors would be booked as discontinued business until a buyer could be found. \n"This clearly means separation," the spokesman said. \nThe decision was reached at an extraordinary meeting of the DaimlerChrysler supervisory and management boards on Thursday and just two weeks after chief executive Juergen Schrempp defended his global strategy in front of angry shareholders. \nMitsubishi had been expected to seek shareholder approval on April 30 for a ?700 billion (US$6.39 billion) bailout. \nSources and media had said DaimlerChrysler would fund more than half of that, with plans to consolidate the Japanese company into its books within a few years. Mitsubishi group firms were expected to provide more than ?100 billion. \nMitsubishi Motors said it was evaluating the situation and that chief executive Rolf Eckrodt was in touch with DaimlerChrysler and Mitsubishi group companies. \n"The move will leave Mitsubishi Motors with no choice but to shrink its business operations," said Hajime Yagi, a general manager at Meiji Dresdner Asset Manage-ment in Tokyo. \nReeling from losses on easy-term car loans in the US, the maker of the Pajero sport utility vehicle is expecting a net loss of ?72 billion for the 12 months to March 31. \nIt had a profit of ?37.36 billion the previous year. \nMitsubishi Motors' net automotive debt stood at around ?726 billion six months ago, while total interest-bearing debt was ?1.141 trillion. \n"This could be the end for Mitsubishi if nobody else injects fresh capital," one industry source said. \nJapanese government officials also expressed concern. \nDaimlerChrysler bought the stake in Mitsubishi over three years ago with a view to expanding in Asia, and the decision to cut its losses will intensify pressure on Schrempp, who faced calls to resign at the annual shareholder meeting on April 7.
BACK TO NORMAL? The move would be part of a gradual easing of curbs monitored by the CECC, which would retain the quarantine mandate if case numbers rise again The Cabinet yesterday approved a plan to next month reopen Taiwan’s borders to all visitors and lift the quarantine mandate for arrivals, provided the nation’s COVID-19 situation does not escalate. The changes are likely to take effect on Oct. 13 as part of a phased easing of border controls that is to start on Thursday next week when a negative polymerase chain reaction test result would no longer be needed, Cabinet spokesman Lo Ping-cheng (羅秉成) told a news conference. Arriving travelers would instead be given four rapid antigen home test kits, Lo said. The three-day quarantine requirement followed by four days of mandatory
‘NO SURRENDER’: A blockade or outlying island seizure would be an act of war, and China’s drills last month have emboldened Taipei in its response plans, an official said The Republic of China Army Command Headquarters has agreed to purchase 5,000 Kestrel close-range anti-armor missiles worth NT$400 million (US$12.63 million) from the Chungshan Institute of Science and Technology, according to the military’s latest arms purchase bid notice. The army asked the institute to complete the order within 13 months, a military source said on condition of anonymity. Kestrel missiles are designed to penetrate armored vehicles and are used in anti-surface warfare, as they feature optical sights and night vision, and can be operated in all weather conditions. The missile has a 400m range, or a 150m range when used for breaching brick
IF THE CHIPS ARE DOWN: The US secretary of state warned that a disruption to the supply of Taiwanese semiconductors would play havoc with the global economy If Taiwan were attacked, the global economy would face devastation, as that is where most of the world’s semiconductors are produced, US Secretary of State Antony Blinken said on Sunday. In an interview that aired on the 60 Minutes television program, Blinken was asked whether instability across the Taiwan Strait would be felt around the world. Blinken said that China has been increasingly aggressive against Taiwan, posing a threat to peace and stability in the region, while economically the world would feel the effects of such aggression. Blinken was interviewed for the program after meeting with Chinese Minister of Foreign Affairs Wang Yi
‘ABSURD’: UN Resolution 2758 expelled the Chiang Kai-Shek government without mentioning Taipei, something the Chinese minister did not acknowledge, Taipei said Taiwan yesterday criticized Chinese Minister of Foreign Affairs Wang Yi (王毅) for “intentionally misinterpreting” a 1971 UN resolution to misrepresent Taiwan’s status to the global community. In his address on Saturday to the UN General Assembly, Wang cited Resolution 2758 as a basis for Beijing’s claim that Taiwan is part of China. He said that Beijing considers Taiwan an “inseparable part of China’s territory since ancient times.” “Only when China is completely reunified can there be enduring peace across the Taiwan Strait... Any move to obstruct China’s reunification is bound to be crushed by the wheels of history,” Wang said. General Assembly Resolution 2758