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Tokyo (pte027/23.05.2005/12:18) - The Japanese auto manufacturer Mitsubishi Motors Corporation (MMC) http://www.mitsubishi-motors.com/ posted a US$4.39 billion (474.79 billion yen) group net loss for the 2004/05 year to 31 March.
Sales have been plunging in the US and Japan ever since the company was exposed in 2000 as having used defective auto parts for over a decade. Former executives and high-profile employees of the company were arrested when two road deaths were linked to the company and safety-related defects.
The group net loss has almost doubled as the company is struggling with restructuring cost charges and provisions for asset impairment. The predicted net loss for last year was 475 million yen.
Operating losses went up to 128.54 billion yen from 96.85 billion yen.
MMC is the only Japanese auto manufacturer that posted a loss this year. Competition includes Toyota Motor Corp., Nissan Motor Co., Honda Motor Co. and Mazda Motor Corp., which all reported record-high earnings for the 2004/05 year.
Managing director Hiizu Ichikawa said: "We want to recover the 300,000-unit level (for domestic sales) during the 2006/07 business year."
MMC is hopes to post a profit in the financial year ending in March 2007.
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