smackkk

MMC asking around for buyer of U.S. operations

Struggling Japanese automaker Mitsubishi Motors Corp. is quietly seeking a buyer for its U.S. operations, implying the company intends to leave the world's biggest car market, the Asian Wall Street Journal reported Friday.

Mitsubishi Motors' new president, Osamu Masuko, traveled to Detroit in January to begin talks with potential buyers during the North American International Auto Show, the business daily said, citing people familiar with the matter.

Masuko was accompanied by Yasushi Ando, head of Tokyo-based investment fund Phoenix Capital Co., which holds a 21.2 percent stake in Mitsubishi Motors, the sources were quoted as saying.

Masuko and Ando met privately with several industry executives, including representatives from U.S. private equity fund Ripplewood Holdings LLC, the paper said.

Ripplewood did not show much interest in Mitsubishi Motors' U.S. operations, the sources were quoted as saying.

The talks mainly focused on Mitsubishi Motors' assembly plant in Normal, Ill., and its North American sales unit in southern California, the paper said.

If Mitsubishi Motors withdraws from the U.S. market, it would be the first major foreign automaker to do so in more than a decade, according to the daily. French auto manufacturers PSA Peugeot-Citroen SA and Renault SA, and Japanese automaker Daihatsu Motor Co. pulled out in the late 1980s and early 1990s.

http://www.japantimes.co.jp/cgi-bin/...20050219a4.htm

HAZ-Matt

Interesting. I've got a few bucks lying around, maybe I can buy them

Gold_Rush

I really like the EVO, and would hate to see that discontinued. I really couldn't care less about the rest of Mitsu's line.

redzed

I've frequently hinted at the outside possibility that we might see rebadged Galant sedan, Endeavor crossover SUVs or the upcoming Eclipse coupe sold at Daimler-Chrysler dealerships. This sort of seemingly improbable development would explain why DCX seems to have made little visible progress towards a Sebring/Stratus replacement.

Nothing's writen in stone, but I wouldn't worry about the future of the Normal, Illinois factory.


It's pretty much certain that Renault is coming back and Peugeot has been moving slowly and cautiously towards a return to the USA for the last decade. Since Renault owns Nissan, a return to the USA doesn't look impossible. Peugeot, however, needs either a partnership or some pre-existing production capacity. Peugeot already has a joint venture with Mitsubishi for a European SUV and a sales presence in Mexico - don't laugh, its still a beachhead in post-NAFTA North America.

Could Peugeot be a bidder for Mitsubishi's North American assets?

Antz97ZNJ

Yea I was reading in business week there having some real problems over here...supposedly there hoping the redesigned eclipse save's there ***'s

Chris 96 WS6

Very interesting. Would certainly give the buyer a foothold here with a US dealerships network and some production capacity.

Or an existing maker could expand marketshare using the dealer network with such an aquisition.

AronZ28

If their new Eclipse is a flop(or any other new car they introduce) is a flop, expect to see them gone within a few years.

redzed

The Eclipse isn't a make-or-break vehicle for Mitsubishi in the USA. A bigger issue is platform sharing with DCX. DCX has killed plans to share the LX platform (yes, the LX platform) with Mitsubishi. The C-D sized midisized car program is gone as well.