Hold your Pajero's

[ajmat]

Lancer = Ambassador ? DaimlerChrysler stated yesterday that it would not be rescuing ailing Japanese carmaker Mitsubishi after all. The announcement was seen as a volte-face; several reports last week claimed that an enormous capital injection was planned for Mitsubishi, with DC infusing up to $7bn to revive the company. These appear to have been over-confident; a DC spokesman ominously told Reuters that when talks broke down over the amount to be raised for a bail-out, it "clearly mean[t] separation." DaimlerChrysler's 37 percent stake in Mitsubishi, Japan's only loss-making automaker, is now being tendered. Just-auto reports an industry insider as saying, "This could be the end for Mitsubishi if nobody else injects fresh capital."

Mitsubishi has not recovered from the dire effects of poorly-judged loans in the States and an ageing product line-up. Daimler has been partner to Mitsubishi and Chrysler since 1998; both companies have proved difficult bedfellows, bleeding $billions from the company coffers. One industry analyst has called the partnership with Mitsubishi a 'financial black hole'. Many insiders are now worried how the move will affect a joint four-cylinder "world engine" development program between Chrysler and Mitsubishi.

Meanwhile, a question mark is held over the future of DC's relationship with Hyundai. Another Just-auto report claimed that the Korean firm 'felt it no longer needed its German partner after its emergence as one of the world's fastest-growing carmakers.' Plans to build engines together may be scrapped. DaimlerChrysler owns 10 percent of Hyundai. (just-auto.com/ANE)

[GTO]

Mitsubishi had a tremendous beating of its reputation after its quality levels dipped below that of even american car makers and consumers realised theres not too much of the traditional japanese reliability in them. Mitsubishi had been forced to admit in 1999 that it was selling cars with major defects (safety and performance category), but hid the same from its buyers.The cars depreciate like used shoes in each and every developed market around the world. JD Quality has consistently rated Mitsubishi at the bottom of the pile since the last 5 years. In fact, most of the recent sales have had more to do with heavy discounting and 0% financing for three year loans than the products themselves.

Mitsubishi, alongwith Nissan, embarked on a massive restructuring plan in the late 90's but while cost-cutting guru Carlos Ghosn succeeded in getting Nissan back to the black with an exciting product range and massively improved levels of quality...Mitsubishi could not achieve even a small percentage of what it set out to do. Beside the almighty EVO VIII, there is not product that is modern and exciting enough.

Its a shame since I really love the Lancer in N/A and EVO form alike. The Pajero also ranks as one of my favorite SUV's for its sheer off-road capabilities. But as the current auto market dictates, you have to be an innovator, quality leader and customer-oriented to survive in todays highly competitive times.

If Daimler Chrysler, as owner of 37% stake in Mitsubishi Motors, refuses to inject capital in the Japanese automaker right now...its shows that they have no faith in Mitsu's cars. And if the owner himself loses faith in a company's products and services...should the customer be far behind?

GTO

[aadix]

what would be the effect in india?

so does it mean/indiates mitsu india going the daewoo india way???

[vishnugnair]

wait i am sure there r enough people wanting to overtake mitsubishi. with the amount of expertise they have like in the suv pajero winnig the dakr and other major rallies they r sure to be approached by other companies. and guys it wont have a fate of daewoo..since in the latter the ceo comited sucide and owner applied for bankrupcy. this has not happend here. and in that case what abt hyundai who r facing similar crisis. their owner apparently jumped off the apartment storey and fel ot his death doesnt that sound awefuly familiar......1
and hey who knows maybe we will finally have a car called the reliance VII ....kapda, makhan, mobile or gaadi!!!! karlo road muthhi mein!!!

[ajmat]

Originally Posted by [b

Quote[/b] (vishnugnair @ April 26 2004,16:07)].since in the latter the ceo comited sucide and owner applied for bankrupcy. this has not happend here. and in that case what abt hyundai who r facing similar crisis. their owner apparently jumped off the apartment storey

Correction - owner of Daewoo has gone into hiding.

Hyundai Motorshas always been successful, it was the CEO of another wing of Hyundai -construction or shipping that jumped

[Rtech]

BTW, mitsubishi is not officialy in India as a automobile company. They have just liceneced HM to manufacture their products! just thought i'd mention that!

[vishnugnair]

Originally Posted by [b

Quote[/b] (rtech @ April 26 2004,17:33)]BTW, mitsubishi is not officialy in India as a automobile company. They have just liceneced HM to manufacture their products! just thought i'd mention that!

hmm well u r buying a mitsubishi lancer not an hm one....!!!so the company matters,

oh by the way daewoo is ne of the largest ship buliders and cargo movers in the world.
Mong-hun - Son of late Hyundai Motors founder comitted sucide .....buddy !

[ajmat]

Originally Posted by [b

Quote[/b] (vishnugnair @ April 27 2004,02:04)]Mong-hun - Son of late Hyundai Motors founder comitted sucide .....buddy !

What I am trying to sat Hyundai Motors were never in trouble - other parts of the Hyundai conglomerate were. Whole of Daewoo is decimated.

[toyota]

I dont think there will be much problem in India . They have a very thin model range and even if they wrap up their sales and service, still you can get parts from overseas .
Nowadays you get all those G parts much cheaper !

[GTO]

Right Toyota, they would hardly have a problem in India as their only presence is with supplying HM the Lancer kits....You cant really say they are commited to this market.

But on another note, trust a vintage Hindustan Motors to totally ruin the Lancer. Where the year 1999-2001 cars just reeked of strong build quality and felt tight all around, the new Lancers are a shame. Chipping plastics, creaks and rattles and wait...uneven panel gaps!!

So much for localization

GTO

[v12]

Also i think the Pajero bookings have been stalled for the moment. HM isnt accepting any more bookings for the Pajero 3.2. They will wait till the facelifted Pajero 3.2 is launched.

[S350L-E240]

Would anyone even buy the pajero ?when the company does not even know if it would get it's breakfast tomorrow?
But i believe the next Gen pajero was to be based on the Jeep Grand cherokee, I think that would be intresting to see,
Well it's ok, The world isnt goin to go smaller with one less ''could have been'' good car

[GTO]

Originally Posted by [b

Quote[/b] ]Would anyone even buy the pajero ?when the company does not even know if it would get it's breakfast tomorrow?

I honestly wouldnt mind picking up a traditional body-on-chassis Pajero from the late 90's...Its got the looks, off-roadability, street presence, reliability and performance.

Its one of my favorite SUV's...right up there with the old-gen Landcruiser!

GTO