Mitsubishi group firms plan to pour up to 300 billion yen ($2.93 billion) more into Mitsubishi Motors Corp (MMC), which is still struggling to rebuild itself after receiving a hefty aid package last year, financial sources said on Wednesday. MMC, Japan's only unprofitable auto maker, has been trying to improve its fortunes after former majority shareholder DaimlerChrysler AG gave up on its rehabilitation in April last year.
MMC then secured an aid package of 496 billion yen from the Mitsubishi group and others, but its troubles deepened when its past practice of covering up vehicle defects resurfaced. The subsequent blow to the brand led to a 40 percent plunge in MMC's domestic sales last year.
The sources said the Mitsubishi group firms, including machinery maker Mitsubishi Heavy Industries Co, trading house Mitsubishi Corp and Mitsubishi Tokyo Financial Group, would buy common and preferred shares in MMC as well as some of its assets.
The companies are also seeking other forms of aid from the Bank of Tokyo-Mitsubishi and Mitsubishi Trust Bank. If agreed, the group's total assistance could reach 400 billion to 500 billion yen, the sources said.
MMC said no final decision had been made on the details of its revitalisation plan.