Mitsubishi Motors deepened its financial crisis in the six months through September, reporting a record interim net loss of 146.16 billion yen (1.38 billion dollars), nearly double the 80.22 billion yen deficit recorded in the same period a year earlier. Revenue for the half-year fell 11.3 percent to 1.07 trillion yen, the worst first-half performance in the Japanese automaker's 34-year history.
The company, battered by repeated defect cover-up scandals that triggered large-scale vehicle recalls, also revised its full-year projections downward, now expecting a net loss of 240 billion yen and sales of 2.1 trillion yen through March 2005. Global unit sales dropped 16 percent to 646,000 vehicles in the first half, with Japan and the United States both posting steep revenue declines, though European sales edged up 9.2 percent on the strength of a new model.
A 496 billion yen rescue package from affiliated companies and outside investors followed DaimlerChrysler's April refusal to inject fresh capital. Cost-cutting measures include workforce reductions and factory closures in Japan and Australia.
Historical summary. TurkishPress restated this AFP wire report, first published in November 2004, in its own words.