Stop The Bleeding! Suzuki/Mitsubishi May Have To ABANDON U.S. Market
Agent00R submitted on 7/10/2009 Official Bell & Ross Timestamp: 2:35:54 PM
21 user comments | Category: Misc News | Source: | SOURCE: www.bloomberg.com
(Originally submited by 0to60)
July 10 (Bloomberg) -- Suzuki Motor Corp.
and Mitsubishi Motor Corp., suffering from plunging U.S. sales and excess North American plant capacity, may have to quit the market after a quarter century.
Suzuki, Japan’s fourth-largest carmaker, reported a 78 percent drop in unit sales in June, pushing its first-half decline to 60 percent, the market’s worst. Mitsubishi is down 51 percent this year, and is stuck in a slump that began in 2003.
Both carmakers “should withdraw from the U.S.,” said Yuuki Sakurai, chief executive of Tokyo-based Fukoku Capital Management Inc., which oversees about $10 billion in Tokyo. “It’s time for them to decide whether they pay a high price to continue business there or stop the bleeding.”
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