SA: Cash bailout for Mitsubishi today

AAP General News (Australia)
04-30-2004
SA: Cash bailout for Mitsubishi today

By Tim Dornin, National Motoring Correspondent

ADELAIDE, April 30 AAP - Cash-strapped Japanese car producer Mitsubishi is expected
to get an injection of funds today but uncertainty over its Australian operations will
continue for some weeks.

A meeting of shareholders in Tokyo is expected to be told of a $2.5 billion rescue
package, the funds coming from other Mitsubishi group companies.

The money will be used to develop new models.

But a detailed restructuring plan has been put on hold until next month after Mitsubishi's
major global shareholder, German-US car auto giant DaimlerChrysler, pulled out of the
bailout program last week.

Today's meeting was not expected to be told the fate of Mitsubishi's two plants in
Adelaide, an engine production facility and a vehicle assembly operation which employ
more than 3,000 people.

That continues the uncertainty for those employees and the company's suppliers but
also allows time for the local management, along with the South Australian and federal
governments and union representatives to continue to lobby for their survival.

In Tokyo Mitsubishi has put together a team of 40 senior executives to work on its
global revival plan with its main focus the brand's flagging sales in the United States
which are largely responsible for the big losses it suffered last year.

Yesterday the Australian Manufacturing Workers' Union said it was prepared to lead
a delegation to Japan to impress on the parent company the importance of the Adelaide
operations to Australia's manufacturing sector.

The union also called on the federal and state governments and the company to come
together with union representatives to consider the issues affecting Mitsubishi.

AMWU national secretary Doug Cameron said he was more optimistic about Mitsubishi Australia's
future as a local manufacturer after talks with company president Tom Phillips.

But he said there were still doubts and everything had to be done to ensure Mitsubishi's
survival because of the impact its loss would have on South Australia.

Mr Phillips said the company remained confident of its future as a local manufacturer
and expected to push on with a plan to build a new model next year.

"Mitsubishi Motors is committed to the Australian marketplace and our customers and
I am confident we will be building a new car in 2005," he said.

AAP tjd/drp

KEYWORD: MITSUBISHI DAYLEAD

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