The Truth About Cars » Southeast Asia http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Wed, 16 Jul 2014 04:01:57 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Southeast Asia http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Mitsubishi Wants To Re-Tool Itself http://www.thetruthaboutcars.com/2013/05/mitsubishi-wants-to-re-tool-itself/ http://www.thetruthaboutcars.com/2013/05/mitsubishi-wants-to-re-tool-itself/#comments Thu, 23 May 2013 12:56:33 +0000 http://www.thetruthaboutcars.com/?p=489367 IMG_5537

After accumulating some $9 billion in losses, Mitsubishi Motors is bringing its financial house in order. According to Reuters, “Mitsubishi Motors is considering asking shareholders to approve plans for a 10-for-1 reverse stock split. At the same time, the company may ask shareholders to approve a capital reorganization – a change in accounting that would make it possible to resume paying dividends.”

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Reuters’ sources say the first steps could be announced as soon as Friday and put it before shareholders at the annual meeting at the end of June, “to close a chapter that began with a 2004 bailout for Mitsubishi Motors.”

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Being part of the Mitsubishi group, one of the largest in Japan, Mitsubishi Motors has rich parents that were able to finance an often rocky career of its offspring. Mitsu had a partnership with Chrysler, which was dissolved in the 90s. A decade later, Mitsubishi and Chrysler were back together, as part of a tumultuous threesome with Daimler. In 2004, Mitsubishi dropped out after a boardroom drama at DaimlerChrysler prevented a financial salvage operation of the money-leaking company. At this point, Mitsubishi Motors basically moved in with its well-to-do parent.

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Mitsubishi gave up production in Europe by the end of 2012, and is focusing on the developing markets, mostly Southeast Asia, where it is strong. Mitsubishi has three assembly plants in Thailand alone. At home in Japan, it is streamlining its production. At the Mizushima plant on Monday, I saw nearly to complete catalog of Mitsubishi cars come down the same assembly line. Mitsubishi had  two lines, one for Kei cars, one for regular cars. Even those were combined into one – rather long – multi-model line.

Mitsubishi’s best-selling models on a global basis are the Triton pickup truck and the small SUV sold as both the RVR and Outlander Sport.

 

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SAIC/GM Take First Steps Towards A Worldwide Partnership http://www.thetruthaboutcars.com/2012/12/saicgm-take-first-steps-towards-a-worldwide-partnership/ http://www.thetruthaboutcars.com/2012/12/saicgm-take-first-steps-towards-a-worldwide-partnership/#comments Thu, 06 Dec 2012 19:46:12 +0000 http://www.thetruthaboutcars.com/?p=469331

In its darkest hour, GM handed China-partner SAIC half of GM’s India business in return for some cash. Recently,  GM injected cash (which it has again) into the joint venture, which resulted in GM owning 91 percent of the India business, and SAIC nine. That was widely lauded as GM regaining its independence. Some even said GM and SAIC don’t get along anymore. The opposite is true: GM and SAIC are expected to march hand in hand all over Southeast Asia. SAIC’s influence on GM is spreading.

GM China chief Bob Socia told Reuters that SAIC “will continue to help GM develop ‘value cars’ for India and other emerging markets” and that GM and SAIC might combine their respective strengths to crack emerging market demand for no-frills cars in all of Southeast Asia.

“The whole ASEAN arena is ripe for that same sort of conversation,” Socia said.

“I wouldn’t read too much into the equity share thing; we’re working very well and we will continue to work very well with one another,” said Socia. While GM has resumed operative control of India, SAIC still is “very active in strategic issues of the organization.”

Apart from China and India, Southeast Asia is one of the markets with the most future. It is also where GM had a hard time. Japanese brands own most of Southeast Asia. In Indonesia, Japanese brands control well over 90 percent of the market. GM wants to go on the counter-offensive with low cost cars out of the SAIC stable.

GM is the first and so far only car company that unites with a Chinese joint venture partner to develop other growth markets. A Chinese joint venture slowly develops into a worldwide partnership.

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