(09 Jun 04)

Mitsubishi Motor Corporation has confirmed the terms of its re-financing by the issue of a substantial number of preferred shares. This is the arrangement with which DaimlerChrysler declined to be involved, and almost all the companies taking up the new shares are Japanese.

Mitsubishi Corporation, Mitsubishi Heavy Industries, the Bank of Tokyo-Mitsubishi and the Mitsubishi Trust & Banking Corporation will subscribe for the lion's share of the new issue. Smaller Mitsubishi companies, and others outside the group, are also included, and there will be additional take-up of non-preference shares by the likes of J P Morgan.

Payment for the new shares is due to begin this month and, depending on type, extend into July. Mitsubishi Motors says it will make "maximum use of the funds procured to implement its business revitalisation plan".

At the same time, a reshuffle of executive positions has been announced. Among the arrivals and departures, a number of European executives are retiring, among them product design office chief Olivier Boulay.

Mitsubishi Motors is certainly re-positioning itself as an almost entirely Japanese-financed and Japanese-run operation.

Mitsubishi Road Tests

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