Mitsubishi Motors plans to unveil a midterm business plan when it releases its earnings results for the current fiscal year by the end of May.
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According to Dow Jones, the troubled carmaker, which expects to post a group net loss for the fiscal year to the end of March due to sluggish sales in North America, aims to turn around its battered operations under the plan.
The carmaker also reportedly said that reports about its domestic and overseas operations are based “purely on speculation.”
According to Dow Jones, the Nihon Keizai Shimbun reported in its Tuesday morning edition that Mitsubishi would transfer production of its mainline Pajero [Shogun, Montero] SUV model line to China. The business daily newspaper also said Mitsubishi would consolidate its domestic operations and consider the sale of Southeast Asian joint ventures as part of efforts to restructure its entire production system.
Kyodo News, meanwhile, reported that the company will devise a new revival plan that will likely feature asset sales, a workforce cut, consolidation of manufacturing bases, and a reinvigoration of its North American operations.
Dow Jones said that Mitsubishi also on Tuesday denied local reports that its president, Rolf Eckrodt, is expected to step down to take blame for the firm’s poor results.
Battered by write-offs of bad vehicle loans and weak sales in the US, Mitsubishi Motors posted a group net loss of Y80.22 billion for the April-September period, Dow Jones noted.
