MITSUBISHI MOTORS: Reduce Dealerships as Part of
Company Reporter, May 29, 2007
Mitsubishi Motors Corp. said it will
domestically start reducing group
dealerships to 5 from 29 on July 1 to help streamline sales channels and
turn around its money-losing operations, reports Kaho Shimizu of The
As indicated by Mr. Shimizu, this domestic reorganization is part of
Mitsubishi’s revitalization plan in January 2005.
The five group dealerships will control 293 outlets, as compared with
295 at the end of March 2007. As a result, the total number
of dealerships selling MMC vehicles will drop to 129 from 153, leaving a
total of 800 outlets across the nation, Mr. Shimizu relates.
Each group will be based in one of five areas -- Hokkaido, northeast
Japan, and east, west and central Japan, the report added.
Mr. Shimizu further added that Fujio Cho, Mitsubishi’s managing
in charge of domestic operations, said that its company aims to build a
structure that will allow them to gain profit even if domestic sales
volume remain 250,000 vehicles.
As part of its revitalization plan, Mitsubishi will refurbish 91 outlets
in the next year and open large outlets to serve its flagship stores,
the daily reports.
On April 30, 2007, Troubled Company Reporter-Asia Pacific reported that
the carmaker reported a 3.9% decrease in vehicles sold all over Japan.
Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
is one of the few automobile
companies in the world that produces a full line of automotive products
ranging from 660-cc mini cars and passenger cars to commercial vehicles
and heavy-duty trucks and buses.
The company also operates consumer-financing services and provides this
to its customer base. MMC adopted the "Mitsubishi Motors
Plan" on Jan. 28, 2005, as its three- year business plan covering
2005 through 2007, after investor DaimlerChrysler backed out from the
company. The main objectives of the plan are "Regaining
The company has operations worldwide, covering the United States,
Germany, the United Kingdom, Italy, the Netherlands, the Philippines,
Indonesia, Malaysia, China and Australia. Its products are
sold in over 170 countries.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Standard & Poor's Ratings Services raised its
corporate credit and senior unsecured debt ratings on Mitsubishi Motors
Corp. to B- from CCC+, reflecting progress in the company's
revitalization efforts and reduced downside risks in its earnings and
financial profile. S&P said the outlook on the long-term
rating is stable.
As reported by the TCR-AP on Aug. 4, 2006, Rating & Investment
Information Inc. upgraded its issuer rating on Mitsubishi Motors Corp.
from CCC+ to B with a stable outlook and its commercial paper rating
from C to B, and has removed the rating from its monitor at the same
In July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the rating
of Mitsubishi Motors' senior debts to BB- from B-, with a stable
outlook. The agency also affirmed the NJ rating on CP program of
the company, while upgrading its rating on the Euro Medium Term Note
Program of MMC and subsidiaries Mitsubishi Motors Credit of America,
Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC.