Losses at Mitsubishi Motors Corporation more than doubled in the nine months to the end of December 31 from the same period a year earlier, as a recurring recall cover-up scandal sent sales nose-diving.
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According to the Associated Press (AP), Mitsubishi Motors reported a 228 billion yen ($US2 billion; €1.6 billion) loss for the April-December period, worse than the 103 billion yen loss it racked up in the same period the previous year.
Sales reportedly dropped 12% to 1.6 trillion yen ($15 billion; €12 billion) for the three quarters, down from 1.8 trillion yen the previous year.
AP noted that Mitsubishi Motors has been struggling for a decade to boost sales and fight recurring scandals. It appeared to be on a turnaround under an alliance with DaimlerChrysler for a few years, but has been back in deep financial trouble after the German automaker withdrew additional financing last year.
Mitsubishi Motors also said a preliminary agreement has been reached with DaimlerChrysler on a compensation settlement, although the company refused to say how much it would pay, AP noted. DaimlerChrysler has been demanding compensation for financial damages from the repeated scandals.
The Associated Press said that, under the deal, set to be finalised next month, Mitsubishi Motors will transfer the remaining 20% stake it owns in Mitsubishi Fuso Truck and Bus Corp., raising DaimlerChrysler’s stake in the Tokyo-based truck maker to 85%.
In Frankfurt, a source close to DaimlerChrysler reportedly told Dow Jones Newswires that the compensation will be about €200 million ($255 million) to €250 million ($319 million). DaimlerChrysler reportedly said it was “very satisfied” with the deal.
AP said Mitsubishi Motors, which did not break down quarterly earnings figures, kept unchanged its forecast for the full fiscal year ending March 31 of a 472 billion yen ($4.5 billion; €3.5 billion) loss on 2.04 trillion yen ($19.5 billion; €15 billion) in sales.
The report said Mitsubishi sold 146,000 vehicles in Japan during the nine months, down 41% from the same period the previous year, and 131,000 vehicles in North America, down 37%.
