An Ailing Mitsubishi Motors Seeks Buyer for U.S. Operations
By NORIHIKO SHIROUZU and JATHON SAPSFORD
Staff Reporters of THE WALL STREET JOURNAL
Struggling Japanese car maker Mitsubishi Motors Corp. is quietly seeking a buyer for its U.S. operations, a move that may well signal the company's intent to exit the world's largest car market, people familiar with the matter said.
Mitsubishi Motors's new president, Osamu Masuko, traveled to Detroit in January to begin talks with potential buyers during the North American International Auto Show, they said. He was accompanied by Yasushi Ando, head of Tokyo-based investment and workout fund Phoenix Capital Co., which holds a 21.2% stake in Mitsubishi Motors, these people said.
During their trip to Detroit, Messrs. Masuko and Ando met privately with several industry executives, including representatives from U.S. private equity fund Ripplewood Holdings LLC and the Austrian unit of parts supplier Magna International Inc. that assembles vehicles under contract from different auto makers, people familiar with the matter said.
Mitsubishi is interested in discussing a sale of its Normal, Ill., plant as well as its North American sales unit that is based in Southern California, these people said. The key asset of the sales arm is the relationships Mitsubishi has with about 600 dealerships across the U.S. Those could be valuable to other car makers that are expanding in the U.S. but need more dealers to continue growth. Auto makers in that situation include Hyundai Motor Co. and Kia Motors Corp., both of South Korea.
Mitsubishi representatives confirmed Messrs. Masuko and Ando attended the Detroit auto show, but wouldn't comment on any meetings, adding only that Mitsubishi has "no plans to withdraw from the North American market." (Ed: yeah, right)
If Mitsubishi Motors does pull out of the U.S., it would be the first major overseas car maker to do so in more than a decade. The late 1980s and early '90s saw the departure of French car makers PSA Peugeot-Citröen SA and Renault SA as well as Japan's Daihatsu Motor Co.
