Post by hjr on Jun 24, 2004 21:29:40 GMT -5
affect that Global Engine Manufacturing alliance(Chrysler, Hyundai, Mitsu) that has 3 plants, one in Japan, 1 in S Korea, and 1 in USA; Dundee Michigan, to open in Jan 05.
Mitsu Loses Mareski, More Could Follow
Mitsubishi Motor Sales advertising chief Paul Mareski, hired just last February, has left the automaker, and may be just the first of a number of executives leaving as the company's future becomes less certain in the face of mounting bad publicity and falling sales.
Mitsubishi's parent company inJapan, amidst a chaotic and uncertain restructuring, had its credit rating lowered by Standard & Poors this week from B-minus to CCC-plus, implying the company's debt is vulnerable to default and questioned the future viability of the company.
Mareski came from Lexus ad agency Team One, and replaced Greg Stahl, who left in December. Mareski is expected to resurface in the ad agency business.
When Mitsubishi CEO Finbarr O'Neill arrived last fall from his successful tenure at Hyundai, he stressed his interest in the job because of its connection to Chrysler. Chrysler has owned 37 percent of Mitsubishi and is in several joint ventures with Chrysler. But since Chrysler balked at upping its investment last April, the size of its stake is going down as Japanese banks pump capital into Mitsubishi. Chrysler's Steve Torok, who recruited O'Neill, is gone already.
Mitsubishi said last week that it would cut employee salaries and speed up layoffs as it expanded a recovery plan to deal with a sharp drop in vehicle sales in Japan . In addition to accelerating previously announced layoffs, the company is cutting executive pay packages by 25 percent to 50 percent, trimming the salaries of middle managers by ten percent and lowering the paychecks of rank-and-file workers by five percent. The company says it expects the cutbacks will reduce costs by $660 million over the next two years.
The company, plagued by cover-ups of quality problems in its trucks, now expects to sell 40 percent fewer vehicles than last year. The company also said it expected its operating losses to grow by a total of 60 billion yen ($545 million) over the next two years because of the decline in sales.
In the U.S., sales are down to a 13-year low. There are rumblings that Mitsubishi's ad agency, Deutsch, may not be long for the business and may go work for General Motors. Other Mitsubishi executives have their resumes out, say executive recruiters. Marketing experts say that Mitsubishi's brand image in the U.S., as well as Japan, is such a long term turnaround that others will jump ship and good people will be hard to recruit.
"This is not a Hyundai situation where quality fell off...this is a case of cover-ups and bad behavior surrounding a brand that barely had a brand image when it was going good," says marketing consultant David Sinclair. "This is like Audi and Suzuki ten and fifteen years ago if you add corruption on top of a PR problem...there are so many other brands for car buyers to choose from that all Mitsubishi will get going forward are bad credit risks and bottom feeders...it isn't pretty or hopeful for customers or employees," says Sinclair.[/color]-Jim Burt
Mitsu Troubles Deepen with Recalls by Joseph Szczesny (6/21/2004)
Another revival plan due for beleaguered Japanese carmaker.
from
thecarconnection.com
daily news, 24june04.
Mitsu Loses Mareski, More Could Follow
Mitsubishi Motor Sales advertising chief Paul Mareski, hired just last February, has left the automaker, and may be just the first of a number of executives leaving as the company's future becomes less certain in the face of mounting bad publicity and falling sales.
Mitsubishi's parent company inJapan, amidst a chaotic and uncertain restructuring, had its credit rating lowered by Standard & Poors this week from B-minus to CCC-plus, implying the company's debt is vulnerable to default and questioned the future viability of the company.
Mareski came from Lexus ad agency Team One, and replaced Greg Stahl, who left in December. Mareski is expected to resurface in the ad agency business.
When Mitsubishi CEO Finbarr O'Neill arrived last fall from his successful tenure at Hyundai, he stressed his interest in the job because of its connection to Chrysler. Chrysler has owned 37 percent of Mitsubishi and is in several joint ventures with Chrysler. But since Chrysler balked at upping its investment last April, the size of its stake is going down as Japanese banks pump capital into Mitsubishi. Chrysler's Steve Torok, who recruited O'Neill, is gone already.
Mitsubishi said last week that it would cut employee salaries and speed up layoffs as it expanded a recovery plan to deal with a sharp drop in vehicle sales in Japan . In addition to accelerating previously announced layoffs, the company is cutting executive pay packages by 25 percent to 50 percent, trimming the salaries of middle managers by ten percent and lowering the paychecks of rank-and-file workers by five percent. The company says it expects the cutbacks will reduce costs by $660 million over the next two years.
The company, plagued by cover-ups of quality problems in its trucks, now expects to sell 40 percent fewer vehicles than last year. The company also said it expected its operating losses to grow by a total of 60 billion yen ($545 million) over the next two years because of the decline in sales.
In the U.S., sales are down to a 13-year low. There are rumblings that Mitsubishi's ad agency, Deutsch, may not be long for the business and may go work for General Motors. Other Mitsubishi executives have their resumes out, say executive recruiters. Marketing experts say that Mitsubishi's brand image in the U.S., as well as Japan, is such a long term turnaround that others will jump ship and good people will be hard to recruit.
"This is not a Hyundai situation where quality fell off...this is a case of cover-ups and bad behavior surrounding a brand that barely had a brand image when it was going good," says marketing consultant David Sinclair. "This is like Audi and Suzuki ten and fifteen years ago if you add corruption on top of a PR problem...there are so many other brands for car buyers to choose from that all Mitsubishi will get going forward are bad credit risks and bottom feeders...it isn't pretty or hopeful for customers or employees," says Sinclair.[/color]-Jim Burt
Mitsu Troubles Deepen with Recalls by Joseph Szczesny (6/21/2004)
Another revival plan due for beleaguered Japanese carmaker.
from
thecarconnection.com
daily news, 24june04.
