Shareholders in Mitsubishi Motors Corporation are considering a capital increase for the financially strapped carmaker, but there has been no decision yet, a spokesman for DaimlerChrysler AG told Dow Jones Newswires on Wednesday.
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The news agency said DC was responding to a Wednesday report in the Nihon Keizai Shimbun newspaper that Mitsubishi is considering obtaining Y100 billion in fresh capital from its shareholders, which include DaimlerChrysler, Mitsubishi Heavy Industries Ltd. and Mitsubishi Corp.
DaimlerChrysler owns 37% of Mitsubishi and plans to increase its holding, but not until its Japanese partner lowers debt and proves it can sustain profits, Dow Jones said, noting that Mitsubishi Motors has run into trouble recently because of loose credit policies in the US, which burdened it with bad debt.
