Mitsubishi Motors Corp. has revised its consolidated net loss figures for the year through March 31 to around 250 billion yen due to slumping sales, recalls and restructuring spending, MMC officials said Sunday.
The revised figure represents an increase of more than 100 billion yen from the automaker's original forecast of a 140 billion yen loss on the year.
On Feb. 26, after close consultation with DaimlerChrysler, its largest shareholder, MMC announced that it would cut some 9,500 jobs, or 14 percent of its group workforce, by 2003 and close down its key Oe plant in Nagoya. This is part of a major restructuring plan.
The MMC officials said the company is upping its net loss projection because of outlays such as 100 to 150 billion yen on add-on allowances and other restructuring measures, as well as 17 billion yen on recalls and at least 10 billion yen on a campaign to offer free repairs.
MMC said its sales are expected to decline due to repercussions from a recent recall cover-up scandal. It had originally projected a sales increase of 65 billion yen to 3.4 trillion yen.