MITSUBISHI NEWS | Peugeot Buying Mitsubishi?
You might want to read this informative article from Business Week.
Some bullet points for those short on time:
– PSA Peugeot Citroen, France’s 2nd largest automaker (behind Renault) is looking to take control of Mitsubishi Motors.
– Peugeot is looking to spend $3.5Bn to buy a 30-50% stake in Mitsubishi.
– Combined, Mitsubishi & Peugeot would be the 6th largest automaker in the world (selling nearly 4.5M vehicles per year).
– Mitsubishi would buy a 15-18% stake in Peugeot as part of the deal.
– This would be the 3rd time Mitsubishi partnered with another manufacturer. First Chrysler (70s-1993), then Daimler (2000-2001).
– The deal would be modeled after Nissan-Renault. Renault owns 44% of Nissan and Nissan 15% of Renault.
– Mitsubishi would bring SUV experience and US dealership presence to Peugeot.
– Mitsubishi is the first major automaker to begin selling electric vehicles (i-MiEV).
– Mitsubishi sales in the US in November fell 43% (total: 2,295 vehicles sold).
– Mitsubishi’s market capitalization is $7.5Bn, roughly double Mazda’s.
– Peugeot took a $1.25Bn loss in the first half of this year.
– Mitsubishi has won praise for bold electric vehicle plans.
– Mitsubishi expects worldwide sales to fall by 17% (836,000 vehicles sold, compared to 1,000,000).
– Peugeot deal would bring benefits, but this would mean another group of foreign owners just 4yrs after Daimler bailed.
– Koji Endo, (Advanced Research Japan): “This repeated change in the management creates chaos [inside the company].”
– In 2005, Mitsubishi Heavy Industries, Mitsubishi Corporation, and Mitsubishi UFJ Financial Group got $3Bn in preference shares as part of a $5Bn Mitsubishi Motors bailout.
– In 2010, Mitsubishi will have to begin paying $230M a year in dividends on these shares and it might not be able to do so. This deal would probably be used to redeem the shares to avoid bankruptcy or a fight with the shareholders.