Struggling Japanese auto-maker Mitsubishi Motors Corp will restructure itentire production system in a major overhaul expected to see its president step down, news reports said Tuesday.
President Rolf Eckrodt will move aside as early as April to take management responsibility for the large financial and job losses the carmaker is expected to incur, the Nihon Keizai Shimbun daily said.
Japan's fourth-ranked carmaker plans to transfer production of its Pajero sports utility vehicle line to China, consolidate domestic operations and consider the sale of Southeast Asian joint ventures as part of the restructuring efforts, it said.
Mitsubishi rejected the reports. "The reports are mere speculation. There is no such decision (to replace Eckrodt). The reports on restructuring are also speculation. We have nothing to report to you at this point," a spokesman said.
The company later issued a statement denying any plan for Eckrodt's replacement but added that it "plans to announce a new mid-term business plan at the time of our fiscal year 2003 financial results announcement" in May.
Mitsubishi Motors, 36.97 percent owned by DaimlerChrysler, will craft a new business plan based on the revamped production structure by the end of April and plans to carry out the realignment in three years, the Nihon Keizai said.
Eckrodt's successor will likely be sent from DaimlerChrysler - as Eckrodt was - the Nihon Keizai, Jiji Press and Kyodo News agencies reported.
Eckrodt assumed the Mitsubishi Motors presidency in June 2002 after being sent to the Mitsubishi Motors board as chief operating officer in January 2001 from the German-American auto-maker to turn around the troubled Japanese company.
At the time the company was reeling from a major vehicle recall scandal.
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