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+--- Thread: Mitsubishi's lifeline gets cut (/showthread.php?tid=416)
Mitsubishi's lifeline gets cut - Evan - 04-23-2004
DaimlerChrysler Pulls Plug on Mitsubishi
DaimlerChrysler AG will no longer bankroll Mitsubishi Motors and may sell its stake, leaving the German auto giant's global strategy in disarray and the future of the ailing Japanese firm in doubt.
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- G.Irish - 04-23-2004
Very bad news indeed for Mitsu. They Mitsu USA took a huge financial hit with that idiotic 0 money down/0%/0 payments program they had a few years ago and it doesn't help that their product lineup is weak (other than the Evo). They'll definitely need someone to bail them out.
- Evan - 04-23-2004
I am certainly no mitsubishi fanboy (or even like their products at all) but marketplace competition is always a good thing for the consumer. (something the nasioc boys dont seem to understand)
hopefully they will get bailed out. there should be a light at the end of the tunnel with them, since they just incurred big R&D costs with the redevelopment of their entire line, and eventually they will start making money off the 0/0 crap.
- G.Irish - 04-23-2004
The problem with the 0/0/0 program is that they also took on a lot of bad credit which is defaulting now and costing them money.
But like you said it comes down to product. I'm sure they can get the capital from somewhere (like Nissan did).
- CaptainHenreh - 04-23-2004
G.Irish Wrote:The problem with the 0/0/0 program is that they also took on a lot of bad credit which is defaulting now and costing them money.
But like you said it comes down to product. I'm sure they can get the capital from somewhere (like Nissan did).
An excellent point. Someone will buy Mitsu. Honestly, I'd like to see VAG do it. That'd be awesome, and it would really diversify their market. The problem is that there's nmothing special about mitsubishis. They are plain, capable cars.
And that's it. It's just plain, average transportation. (with the exception of the Evo, or the JDM Galant VR-4)
- Dave - 04-23-2004
sux to be Mitsu.
If they go under, where are all the DSM boys going to get thier engines when they blow them up?
- .RJ - 04-23-2004
Dave Wrote:sux to be Mitsu.
If they go under, where are all the DSM boys going to get thier engines when they blow them up?
I bet a 4G63 will pull a premium right before racewars!
- Mike - 04-23-2004
I guess that rules out an Evo for me...
- mrbaggio - 04-23-2004
Mitsu does A LOT of biz in other area's not just cars. They will take a hit but they company is not going anywhere.
-Justin
- KPWSerpiente - 04-23-2004
^^ for real.
I can't imagine them going bankrupt over this but I don't know anything about billion dollar businesses so who knows.
I'd be more worried if I was a fan of Dodge. Who's going to help them turbocharge cars in the future?
-T
- .RJ - 04-24-2004
KPWSerpiente Wrote:Who's going to help them turbocharge cars in the future?
I dont think they need any help with that one...
Mitsu's stock tanked 25% yesterday, while DC's jumped up 7%
- KPWSerpiente - 04-24-2004
You're right. Silly me thinking Chrysler got almost all of it's turbochargers from Mitsubishi.
-T
- mrbaggio - 04-24-2004
My car has a Mitsu turbo in it, for what its worth.
-Justin
- .RJ - 04-24-2004
KPWSerpiente Wrote:You're right. Silly me thinking Chrysler got almost all of it's turbochargers from Mitsubishi.
Mitsu Turbos != Mitsu Cars
Like most japanese auto manufacturers, they are involved in many other industries as well.
- KPWSerpiente - 04-24-2004
I don't understand your point at all RJ. Since Chrysler does not make turbos, and Mitsubishi Heavy Industries does, they will have to get theirs from somewhere. And I promise you they will want some now that cars turboed from the factory are all the rage again.
-T
- .RJ - 04-24-2004
Just because Mitsu Motors is tanking, doesnt mean Mitsu Heavy Industries is....
- JohnC - 04-24-2004
KPWSerpiente Wrote:I don't understand your point at all RJ. Since Chrysler does not make turbos, and Mitsubishi Heavy Industries does, they will have to get theirs from somewhere. And I promise you they will want some now that cars turboed from the factory are all the rage again.
-T
You missed it completely. The point is that the manufacture of Mitsubishi turbos is not closely related to the auto business. Therefore, cuts in funding to the auto business shouldn't affect the turbocharger business at all. Mitsubishi (as we all know) is an enormous conglomerate, deeply invested in all aspects of world industry, banking, etc... They're not going anywhere.
- JohnC - 04-24-2004
.RJ Wrote:Just because Mitsu Motors is tanking, doesnt mean Mitsu Heavy Industries is....
What he said.
- KPWSerpiente - 04-25-2004
Thanks guys!! I would never have realized Mitsubishi Motors and Mitsubishi Heavy Industries are two discrete corporations without your assistance!!!!!
Now, remembering I don't run billion dollar companies, if I were Mitsubishi Heavy Industries I wouldn't be impressed with daimlerchryslers global screwups and I would not be inclined to design turbochargers for them after they bailed out on my fellow Mitsubishi company. My remarks were meant to be lighthearted and ironic...Mitsubishi Motors loses out on lots of capital and possibly the livelyhood of their company, whereas DC has to look for a new turbo supplier.
But I can see nothing gets past some of you!!!!
-T
- CaptainHenreh - 04-25-2004
Mitsubishi was a huge company before World War 2.
After that, it was split up into a bunch of smaller companies. Mitsubishi autos have NOTHING WHATSOEVER to do with Mitsubishi electronics, or mitsubishi heavy industries. They are completely 100% seperate. And as far as DC having mitsu turbos, I doubt that will cease if mitsu goes under...WHICH IT WON'T.
If some crazy Korean company can buy LOTUS, then surely somebody (GM maybe?) can scoop up mitsubishi motors. I mean, Christ. If you buy mitsu, you not only get mitsu, but also a huge percentage of Hyundai and Kia...something quite a few automakers would love to get a hold of. Mitsubishi isn't going anywhere, and I think we'll see alot of exciting cars from Mitsubishi. DC raped mitsubishi as an R&D lab, and didn't give them a thing in return.
So don't worry folks. We'll still have Evos 5 years from now.
DC just doesn't NEED Mitsu anymore.