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View Full Version : Mitsu may pay DCX Over Compensation Settlement


Cozz
01-23-2005, 07:58 AM
Source: <A HREF="http://www.theautochannel.com" TARGET="_blank">http://www.theautochannel.com</A><p><I><b>Mitsubishi Motors in Talks With DaimlerChrysler Over Compensation Settlement</b><br>TOKYO January 21, 2005; The AP reported that Mitsubishi Motors is in talks with DaimlerChrysler AG to compensate the German automaker for damages related to recall scandals at the Japanese automaker's truck unit, the company said Friday.<p>The talks on possible compensation are continuing, although Mitsubishi Motors has not received an official demand for restitution from DaimlerChrysler, the Japanese automaker said in a statement.<p>DaimlerChrysler was a key partner for the Tokyo-based automaker before deciding last year to end cash infusions to bail out the troubled company.<p>DaimlerChrysler is miffed that scandals about a systematic cover-up of auto defects emerged after it took a stake in both Mitsubishi Motors and its truck unit. The scandals have recurred despite promises by Mitsubishi Motors to come clean after the wrongdoing was first disclosed in 2000.<p>Sales of Mitsubishi cars and trucks have been plunging not only in Japan but also in the United States, where the automaker is suffering deep losses.<p>Mitsubishi Motors said the compensation was still undecided. It denied a report Friday in the major business newspaper Nihon Keizai Shimbun that the settlement may be between 50 billion yen (US$484 million; euro374 million) and 80 billion yen (US$774.5 billion; euro599 billion).<p>Mitsubishi Motors has announced one revival plan after another over the last several years and is set to disclose another this month.<p>The company says the latest restructuring plan involves a fresh cash injection from the Mitsubishi group of companies, which has already doled out nearly 500 billion yen (US$4.8 billion; euro3.7 billion) since last year. The Mitsubishi group includes a major bank, trading company and electronics maker.<br></I><p>Basicly, Mitsu has to pay damages for the cover up in the truck line before DCX took over. I have a funny feeling Mitsu won't pay for it in cash, they'll pay for it in stocks. This would make DCX have a much more firm grip on Mitsu. Who knows for sure.<p>

bolita
01-24-2005, 01:36 PM
You think DCX would want to have a tighter grip on MMC? <IMG NAME="icon" SRC="http://www.germancarfans.com/images/forums/nixweiss.gif" BORDER="0">

Naga Royal Guard
01-24-2005, 05:02 PM
my camera holds CF cards just fine.....

Cozz
01-24-2005, 06:48 PM
<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>bolita</b> &raquo;</i></TD></TR><TR><TD CLASS="quote">You think DCX would want to have a tighter grip on MMC? <IMG NAME="icon" SRC="http://www.germancarfans.com/images/forums/nixweiss.gif" BORDER="0"> </TD></TR></TABLE><p>The way I see it, it's useless to have that kind of money stored up in a company going nowhere. It would be stupid to sell what they have and take such a big loss. They can get "copensation" as stock because Mitsu can't give what they don't have...cash. DCX can then sell it in full or keep it's investment.