Daimler Chrysler pull out of Mitsubishi

[ex-jonboy4969]

DaimlerChrysler Board of Management and Supervisory Board decide on Mitsubishi Motorshttp://www.autoindex.org/images/news/824/small_1_orig.jpgIn an extraordinary meeting on April 22, 2004, the Board of Management and the Supervisory Board of DaimlerChrysler have decided not to participate in a capital increase planned by Mitsubishi Motors Corporation (MMC) and to cease further financial support for MMC.





So what effect will this have on Proton... and the MGR deal ?

[James Riley]

DaimlerChrysler Board of Management and Supervisory Board decide on Mitsubishi Motorshttp://www.autoindex.org/images/news/824/small_1_orig.jpgIn an extraordinary meeting on April 22, 2004, the Board of Management and the Supervisory Board of DaimlerChrysler have decided not to participate in a capital increase planned by Mitsubishi Motors Corporation (MMC) and to cease further financial support for MMC.





So what effect will this have on Proton... and the MGR deal ?


The Mitsubishi link with proton has ceased already hasn't it, although it could be that Mitsubishi are now a potential collaborative partner for MG too! They sell slighely less than MGR do in europe, a good way to combine costs.

Could be a better bet than Proton - or maybe all three together.

[ex-jonboy4969]

What woult the company be called though...

MGRMMCProton
MGRMP
or B.M.C. Brilliant Motor Company (MGR)
B.L.M. bl**dY Lovely Motors (MGR)

[Ian Senior]

Hmmmmm. I reckon Mitsubishi could have a lot to learn from MGR, and not too much benefit t'other way round. Apart from those Evo things, their range is distinctly lacklustre. I once had the "pleasure" of being stuffed up with a Charisma for a day as a hire car. In terms of build standard and quality of materials, it was one of the worst cars I have ever come accross. Seats, handling and ride comfort were woeful, the only redeeming features being a decent engine and gearbox. I also got landed with a Shogun Pinin one day and it was bloody awful. It's the one car I have driven in which I felt unsafe.

[ex-jonboy4969]

the cars may not be the bees knees but what about rteady made 4x4's, they do some very good all wheel drive vehicals, and an instant way in for MGR, badge them as Something else, like Pathfinders or MG's and you have instantly another market !!!!

[smosquito]

Lord, that's a bloody earthquake. Mitsubishi is the sportiest of japanese makers IMO... What will the future augur for them?

An MGR partnership perhaps?

[Atmos]

Mitsubishi needs two things:

- Lots of money
- New and attractive/selling models

None of the above shows any possible partnership with MGR.

[ex-jonboy4969]

Lord, that's a bloody earthquake. Mitsubishi is the sportiest of japanese makers IMO... What will the future augur for them?

An MGR partnership perhaps?

Would be nice to have some ready made 4x4 on sale again, but for obvious reasons not with the Rover name on, thats why i think Pathfinder or MG should be used, If pathfinder is not owned by B*W

[preetoo]

Mitsubishi is to DaimlerChrysler was Rover was to BMW - a cash drain with no visible results due to management neglect and cultural differences. Whether Mitsubishi can sort itself the way the MG-R has shown it can is the new question, but any partnership talk between Mitsubishi and MG-R is premature at best.

[ex-jonboy4969]

Ther was a difference, Mercedes did not Own ALL the share in Mitsubishi, whereas BMW did........

[preetoo]

Ther was a difference, Mercedes did not Own ALL the share in Mitsubishi, whereas BMW did........

This is very true, perhaps revealing that DC did learn from BMW in this instance by minimising its risk.

[< N I C K >]

I think Mercedes only owns 47% of the company... but that is enough. Mitsubishi had very an extravagant top brass with chauffer driven personalised Mitsubishis. They behaved like a company that was making huge profits. So when the Germans swept in they changed all that and made cuts to management everywhere. In fact there is a German guy in charge of Mitsubishi at the moment (Japans fourth largest car maker with a German at the helm).

I wonder why Mercedes decided not too increase their stake...thought that they had made progress in turning around the company.

My mate has a Mitsubishi Galant, which is a good car, very solid. They are not very common in England ah??

Mitsubishi only owned 20% of Proton ah...who did they sell it too?

[ml.williams]

Mitsubishi needs two things:

- Lots of money
- New and attractive/selling models

None of the above shows any possible partnership with MGR.MGR cant realy help with the money bar for they ability to pull cars or facelifts out of the air for pennys

but as for new models would it be so hard to rebody some of the egsiting cars MGR have proved they can turn a dog in to a good looking car look at the 45/ZS

[preetoo]

I think Mercedes only owns 47% of the company...

Only 37%....still a sizeable chunk, but I suspect much easier to dispose of.

[anthony]

but as for new models would it be so hard to rebody some of the egsiting cars MGR have proved they can turn a dog in to a good looking car look at the 45/ZS

A dog is a bit strong isn't it? The 400 wasn't a dog in any shape or form, in fact it is a superb car which is generally underrated!

Anthony.

[Greg]

Oooooh... All sorts of speculation of a Shogun derived Riley Pathfinder 4x4... Would you rather Rove the Lands and Ranges or Find the Paths...?

:hyper:

[ml.williams]

A dog is a bit strong isn't it? The 400 wasn't a dog in any shape or form, in fact it is a superb car which is generally underrated!

Anthony.
no but the 45 mk1 was

[andy]

. Apart from those Evo things, their range is distinctly lacklustre.
How could you say that? Mitsubitshi has a bigger range than MG Rover's one.

[red_rover]

Charisma, Galant, colt erm :doh:

[red_rover]

oh and they do that like smaller sized zafira thing, but its name passes me

[MGROVERnut]

I don't think Mitsubishi have a bad range of cars, but I think they could be a real headache to work with. In a way the problem with Mitsubishi is that they could overwhelm MGR. They have a large product range, relatively new cars and efficient factories but they also have a top heavy management. In contrast MGR and Proton need each other. Proton and MGR both need development partners. There are plenty of gaps to fill in both companies line ups and in Europe Proton needs the MGR brands. It's quite possible to see how both these companies, could plan a good long term future together.

[andy]

Mitsu does not sell all of their range in UK such as the Japanese K-cars and Eclipse, Diamante in American/Aussie markes.

[PhilTheGreek]

I have to say this is a bit of a bombshell, as DC were widely predicted to increase their stake in Mitusbishi to the point where they would be the first wholly foreign-owned Japanese car company.

I think this says a lot more about Mercedes than Mitsubishi - like BMW with Rover, they have bitten off much more than they can chew. I'm extremely sceptical about Mercedes' ludicrous future product plans, with 18 new models planned for the next five years, including estates, B-class saloons, D-Class saloons, 4X4s, sports cars etc - all looking the bloody same! And there is NO WAY they have the engineering capability to produce all this nonsense - they are just trying to scare their competitors into over-investing to a greater extent than they are, with the hope that only the three-pointed star will survive. I don't think it will work - it will just create massive losses and a diluted brand.

It is like VW with all that Bugatti nonsense (they apparently now want to make a more modest(!) Bugatti supercar) - why can't these people just acknowledge their mistakes and move on?

As for Mitsu, they were due to release a couple of very attractive city cars later this year, which looked a lot more promising than any of the recent Mercs or Chryslers - so it seems to be a strange moment to have the plug pulled. I don't feel a great deal of sympathy for them though - their previous cars were soulless and pig-ugly - especially the EVOs.

[mrd]

Don't Mitsubishi hold the patent for gasoline direct injection technology?

[andy]

Right, I am moving this thread from General MGR chat to Other Car chat as this is hardly MGR related.

Don't Mitsubishi hold the patent for gasoline direct injection technology?
Yes, but their GSI technology does not work well in humid places. I am not sure if they had fixed the promblem now.

Phil, is it the Colt you are refering to as the attractive city car?

[ex-jonboy4969]

I think we will have to wait and see what it does to the MGR deal...

[75Lover]

This shouldn't even be a question...two companies merging each on shaky footing =a fall! Mitsubishi and MGR would NOT mix...but I believe Mitsubishi will be fine on it's own with out DC...they have a different range then MGR and are better set up to start out...but MGR has done a good job of working with the current range and making something out of nothing...

[ex-jonboy4969]

Totally agree, but there should be nothing wrong with borrowing a model or two and rebadging them for an instant entry to niche markets as a short term measure is there ?

[andy]

One thing I want to say: Mitsubishi does not need MG Rover!
I don't see why they would be interested as they won't gain much from deals or collaboration with MGR.

[ex-jonboy4969]

What about a few MG 4x4 models from Mitsubishi.... more sales for them and instant entry to the 4x4 world that i believe could be good for MGR...IMO

[Lord Minty]

Given MGRs involvement with Proton is still at an early stage a tie up with MMC could be a good thing. MMC also have a share of Hyundai and IIRC FHI (aka Subaru).

Mitsubishi Corp have said they'll bail out MMC to protect their brand, so if MGR entered the fray they could benefit from using some of Mitsubishi Corps cash for joint platform development - and we all know Proton need this too and there aren't buyers queuing up for Proton either!

I say send Kevin Howe of to Japan!

[smosquito]

Mitsubishi and MGR are both makers out in the cold, with things they might offer one another.

MGR know what Europeans will buy. Mitsubishi know what Americans will buy. And they have a dealer network in the US.

Could only be positive IMO. Send Kevin Howe over in a kimono, with David Beckham, a crate of whiskey and make a deal!

[ex-jonboy4969]

Kevin Howe in a Kimono, now thats gonna give me nightmares for weeks..........