Mitsubishi Rules Out New Capital Alliances

Mitsubishi Motors Corp. will seek shareholder approval on Dec. 26 to shed preferred shares the other Mitsubishi group companies acquired nearly a decade ago to help save the company, The Nikkei reports.

The investments were made when MMC was struggling to emerge from a scandal over product defects it hid for years from customers and government regulators. The company has since recovered.

MMC vows to avoid any new capital alliances, preferring instead to form project-based non-equity partnerships with other carmakers as needed. The company currently operates such ventures with Nissan (minicars and electric vehicles), PSA Peugeot Citroen (small cars, SUVs and EVs), Proton (small cars), Renault (sedans) and Suzuki (small cars and commercial trucks).

MMC plans to accelerate its successful "Jump 2013" effort to improve profits over the past three years with a new three-year program that begins in April. The plan aims for a 30% hike in sales to 1.4 million units by the end of fiscal 2016, driven by demand for higher-margin SUVs, crossover and pickup trucks.

Other goals of the plan include streamlining operations; boosting quality; introducing an array of next-generation engines; building a stronger presence in ASEAN countries, China and Russia; and reviving sales in North America and Europe;