Mitsubishi seeks 56 percent sales growth by 2013

Article by Christian Andrei, on August 29, 2010

By the end of 2010, Mitsubishi Motors Corp. expects to be able to announce its plans to remove billions of dollars in preferred shares from its balance sheet, according to its president.

At roughly the same time, the carmaker also expects to reveal a growth plan for a 56% increase in vehicle sales. In recent years, Mitsubishi sales have plunged.

Many analysts have stopped covering its stock because of the unsettled matter of over 400 billion yen ($4.4 billion) of unredeemed preferred shares issued mostly to the Mitsubishi group.

According to President Osamu Masuko, the only options available to the company are converting the shares to common stock, selling them through a third-party allocation, purchasing them back, or a combination of these steps.

Masuko, who moved to this post in 2005 after a great career at sister trading firm Mitsubishi Corp., said that he wants to be able to talk about it by the end of the year.

He said that the factors that could have an adverse impact to this goal are the unsteady global economy and financial markets. In an interview with Reuters, Masuko said that if these conditions persist, it would be hard to come to a decision by year-end.

If all the preferred shares are converted to common stock, it would result in a massive dilution of Mitsubishi Motors shares, adding more than 3.5 billion shares to the current 5.5 billion.

Topics: mitsubishi, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries