Mitsubishi Motors and DaimlerChrysler are reviewing a restructuring plan for the ailing Japanese carmaker and are likely to seek a bigger capital injection of 300 billion yen ($US2.8 billion), Japanese media reported.
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According to Reuters, the Nihon Keizai Shimbun (Nikkei) said DaimlerChrysler believed an increase from the 200 billion yen set under the original plan was necessary given bigger-than-expected expenses from new vehicle development and restructuring efforts.
It reportedly said Mitsubishi Motors and DaimlerChrysler would discuss the planned capital increase with shareholders such as Mitsubishi Heavy Industries Ltd. and Mitsubishi Corp.
DaimlerChrysler is Mitsubishi’s largest shareholder with a 37 percent stake, Reuters noted.
Mitsubishi Motors said in February it expected an operating loss of 105 billion yen for the year to the end of March instead of the 45-billion yen loss forecast three months ago, due to loan finance problems at its North American unit, Reuters noted, adding that the company is scheduled to announce its restructuring plan by April 30 when it is also due to post earnings results.
