Big loss renews Mitsubishi fears

[csv8]

Big loss renews Mitsubishi fearsBy George Lekakis
September 11, 2007 12:00am
THE auditor of Mitsubishi Motors Australia has again highlighted "significant uncertainty" about whether the local car maker can continue as a going concern.

In a note to the company's latest financial accounts filed to the Australian Securities and Investments Commission, the directors of Mitsubishi's Australian arm revealed that it had a net current asset deficiency of $168 million.

This disclosure, and the uncertainty about the future of Japanese parent Mitsubishi Motors Corp, caused PricewaterhouseCoopers to make the following statement in its audit report:

"There is significant uncertainty whether the company will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report."
Deep cost cutting and higher sales of imported cars were not enough to push the Australian subsidiary into the black in its latest year.

Accounts for the year to the end of March reveal the country's fourth largest car maker posted a net loss of $118 million.

The bottom line is a 48 per cent improvement on the previous year, when a sharp slide in sales led to a net loss of $226 million.

Disclosure of Mitsubishi's latest result comes on the back of disastrous August sales figures for the locally-built 380 sedan.

Mitsubishi is feeling the impact of dwindling demand for locally-made large passenger cars more than Toyota and Holden because it does not have a large export program.

According to data from the Federal Chamber of Automotive Industries, only 658 Mitsubishi sedans were sold last month -- down 38 per cent on the 1069 in August last year.

Lower than expected sales of the 380 forced production at the Tonsley Park plant in Adelaide to be reduced by more than two thirds last year.

In a written commentary attached to the latest accounts, Mitsubishi's Australian chief executive Robert McEniry indicated that weak export sales and special restructuring costs undermined the bottom line.

"The result was hindered by a continued lack of vehicle exports and lower than expected sales in the domestic market and continued restructuring costs of $33.7 million," Mr McEniry said in the report.

"Issues in the large passenger vehicle segment were further exacerbated by fierce competition between local manufacturers."

Despite these problems, Mr McEniry indicated that Mitsubishi planned to continue producing cars in Adelaide.

"Mitsubishi Motors Australia's manufacturing operations are now 'right-sized' for moving forward," he said.

"The operation is able to maintain low stock levels and meet sales demand, but still has the flexibility necessary to accommodate market shifts."

Recovery in the operating result was mainly due to solid sales growth of imported Mitsubishi models.

Mitsubishi's share of the Australian automotive market stood at 6.2 per cent at the end of March.

Group revenue declined $185 million, or 11.3 per cent, to $1.44 billion, but this was countered by lower writedowns and marketing costs.

[BLDNUT01]

what also makes it hard is the same car is made elsewhere so very easy to pack up and just import em

[EgoFG]

What if Chrysler and MMC merged Au operations, and assembled the coach door charger here instead !

[csv8]

That Charger is awsome see it in NCIS. But when the MONDEO is on sale, that is going to finish the 380..sad too say

[Bossxr8]

Originally Posted by csv8

That Charger is awsome see it in NCIS. But when the MONDEO is on sale, that is going to finish the 380..sad too say

Not to mention the Orion and new Mazda 6, which are all rivals to the 380. The biggest problem is having no money to upgrade it either, its up to a series 3 and they haven't changed much at all bar seat trims, wheels and paint colours. I don't know how they are going to afford a facelift.

[SB076]

Dont think they will change the 380 that much - therefore I think they will stop producing it. HOWEVER I hope (due to recent government grants etc) they they keep manufacturing in Aust. I think they just need to manufacture a different car - Lancer, SUV or a something with Hybrid technology and they need some export program to increase build numbers

[Riksta]

Originally Posted by SB076

I think they just need to manufacture a different car - Lancer, SUV or a something with Hybrid technology and they need some export program to increase build numbers

Maybe they could come up with a new Cordia to keep people like Roger happy

[SB076]

Originally Posted by Riksta

Maybe they could come up with a new Cordia to keep people like Roger happy

We can only dream - with Roger in a new Cordia (plus with stability control to help reduce all the wheel spin and torque steering) I am sure he would give an F1 car a decent run at the GP

[Ralliart]

how did i know this would pop up here : :

[[Tonko]]

Originally Posted by Ralliart

how did i know this would pop up here : :

: why cant we talk about your brother?
/flashback...toll bar

[Fairlane]

Very poor figures for Mitsu very sad- Far out Nissan sells more of those bloody X-Trails

They are bloody dirt cheap at the moment and a pretty nice drive. Compared to say Camry and Mazda 6 they a bloody riot. You can get a bloody nice kitted up 380 for around 29.5k drive away these days.

[soulfire]

Originally Posted by Fairlane

Very poor figures for Mitsu very sad- Far out Nissan sells more of those bloody X-Trails

They are bloody dirt cheap at the moment and a pretty nice drive. Compared to say Camry and Mazda 6 they a bloody riot. You can get a bloody nice kitted up 380 for around 29.5k drive away these days.

Lol, the 380 is a better car to drive than both the base commodore and falcon with much better build quality and equipment, and most of the panels are the same colour :p - It's a good product, but too many fleet companies were burnt by the magna - it was doomed from the start.
Mitsubishi are better doing what Nissan di and closing Australian operations and becoming a complete importer.

[Smoke Pursuit]

Originally Posted by soulfire

Lol, the 380 is a better car to drive than both the base commodore and falcon with much better build quality and equipment, and most of the panels are the same colour :p - It's a good product, but too many fleet companies were burnt by the magna - it was doomed from the start.
Mitsubishi are better doing what Nissan di and closing Australian operations and becoming a complete importer.

Bullshit, a BF XT 6 speed auto with ESP shits all over a 380... Front wheel drive crap boxes... They arent anything special, in my eyes no better then the last of the Magnas, basically the same car with more power...

They are destined for a bad future, the Series III would have to be the worse looker of them all!

[Ralliart]

Originally Posted by LSTerritoryGhia

Bullshit, a BF XT 6 speed auto with ESP shits all over a 380... Front wheel drive crap boxes... They arent anything special, in my eyes no better then the last of the Magnas, basically the same car with more power...

They are destined for a bad future, the Series III would have to be the worse looker of them all!

the 380 was a dispointment, in all there models they all have the same power of each of them, 175Kw, a 3td gen magna would beat it anyway, they should put more power in the higher models say 190kw , the only good thing i like about the 380 is big space, i love the new lancer that looks hot :

[MoreHPformyXR6]

Originally Posted by soulfire

Lol, the 380 is a better car to drive than both the base commodore and falcon with much better build quality and equipment, and most of the panels are the same colour :p - It's a good product, but too many fleet companies were burnt by the magna - it was doomed from the start.
Mitsubishi are better doing what Nissan di and closing Australian operations and becoming a complete importer.

Originally Posted by LSTerritoryGhia

Bullshit, a BF XT 6 speed auto with ESP shits all over a 380... Front wheel drive crap boxes... They arent anything special, in my eyes no better then the last of the Magnas, basically the same car with more power...

They are destined for a bad future, the Series III would have to be the worse looker of them all!

When I was speeking to my local mechanic a few weeks back & he services all three models BA/BF's VZ/VE's & 380's he reckons the 380's are a dam nice reliable car from what he has seen & he said he would happy to buy one if he was in the market. But its good that we dont all thing the same otherwise we would have big problems. : Except if you think like me rofl. :

[Tles]

Originally Posted by soulfire

Lol, the 380 is a better car to drive than both the base commodore and falcon with much better build quality and equipment, and most of the panels are the same colour :p - It's a good product, but too many fleet companies were burnt by the magna - it was doomed from the start.
Mitsubishi are better doing what Nissan di and closing Australian operations and becoming a complete importer.

Any semi government organisation like a Uni for example will get a substantial discount user chooser if they go Australian made and the 380 is the recommendation for over 20,000kms per year.
I could list three such individuals who are just waiting for the LPG dual fuel option (October) and they will buy 380s. The good news is that will mean one less Astra and 2 less Corollas traded in on big Aussies.
The 380 is a great car and outstanding value, and teenage boys fit in the back easy as deserves to succeed.