Latest Automotive News

Subscribe in a reader

Mitsubishi third quarter losses

Email   small font medium font large font


By Yuri Kageyama

TOKYO (AP) _ Scandal-tarnished Mitsubishi Motors trimmed its losses for the third quarter, although it continued to struggle to boost revenue.

The Japanese automaker reported a 4.3-billion-yen ($36-million-US) net loss for the quarter ended Dec. 31, considerably better than the 49.4-billion-yen loss for the third quarter of 2004.

Tokyo-based Mitsubishi Motors Corp. has struggled for several years to restore its image and boost sales as it fought recurring scandals centred on cover-ups of auto defects.

Sales for the October-December period totalled 538 billion yen ($4.6 billion US), down two per cent from 547 billion yen the previous year.

Lower advertising costs in the United States and Europe as well as the weaker yen helped the company trim its loss, Mitsubishi Motors said in a statement Thursday.

Also adding to the latest results was the absence of losses this fiscal year related to the U.S. financial services unit that came in financial 2004.

In 2000, Mitsubishi Motors acknowledged it had been systematically hiding auto defects from authorities for more than two decades.

The automaker has since announced a spate of recalls, and disclosed in 2004 it had failed to come clean in 2000 and had more concealed defects.

Mitsubishi Motors' sales had been lagging even before the defect scandal surfaced, as it fell behind powerful domestic rivals like Toyota Motor Corp. and Honda Motor Co.

Mitsubishi had already suffered earlier scandals since the mid-1990s, including a sexual harassment lawsuit in the United States and arrests of executives on criminal charges in Japan of paying off racketeers tied to gangsters.

But faith in the Mitsubishi brand, respected for decades in the past, took its worst hit among Japanese consumers with the defect cover-up.

The defects are suspected in two fatal accidents in 2002 in Japan. One occurred when a tire rolled off a truck and crushed a pedestrian; the other when a truck crashed after its brakes failed and killed the driver.

Mitsubishi Motors appeared to be on a turnaround for a few years under an alliance with DaimlerChrysler AG, but the German automaker withdrew additional financing in 2004.

Since then, Mitsubishi Motors has received massive cash infusions from the Mitsubishi group of companies, including a bank, machinery maker and trading company, to support revival efforts.

The automaker said the recovery remains on track.

For the first three quarters of this fiscal year, Mitsubishi Motors sold 985,000 vehicles globally, up four per cent from the same period a year ago.

Mitsubishi Motors kept unchanged its forecast for the year ending March 31 at a 64 billion yen ($542 million US) loss on 2.22 trillion yen ($19 billion US) in sales.

Receive the latest automotive news by email!

Enter your email address:

Related news
TOKYO (AP) _ Scandal-marred Mitsubishi Motors said Monday losses for the April-June quarter shrank to 8.23 billion yen, or US$69.6 million, from the same period last year, boosted by growing sales in North ...
Japan's troubled Mitsubishi Motors on Monday reported a narrower net loss of 16.1 billion yen (US$137 million) for fiscal first-half, compared to the same period last year, helped by favourable ...
A Japanese court has acquitted three former executives of Mitsubishi Motors Corp. of charges related to a fatal accident that prosecutors said was caused by their alleged coverup of a ...
Mitsubishi Fuso Truck and Bus Corp. said Tuesday it is in talks with the Japanese government over a hub problem in some of its vehicles amid news reports that the ...
Japanese tire maker Bridgestone Corp. reported a 69 per cent drop in profits for the first three quarters Wednesday, blaming expenses from the surging cost of rubber and other raw ...
NEW YORK (AP) _ GMAC Financial Services, the finance company formerly controlled by General Motors Corp., said Monday continued losses from its home lending operations caused second-quarter profits to fall sharply. The New York-based ...
The latest job cuts at Chrysler LLC will cost thousands of Canadian jobs directly and at parts suppliers _ some of which may face bankruptcy _ Canadian Auto Workers president Buzz Hargrove says. The ...
Delphi Corp.  filed a report showing that the auto-parts maker's monthly losses grew in September to US$673 million from $508 million in August. The Troy, Mich.-based company is working to ...
SEOUL, South Korea (AP) _ Angry employees of subcontractors for Kia Motors occupied an assembly plant paint shop for a fourth day Tuesday as production losses mounted, the automaker said. The unrest caused ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!

Mitsubishi third quarter losses
> © 2006-2017 except where otherwise noted