Friday, May 21, 2004 | 9:15 a.m.
TOKYO -- Japanese automaker Mitsubishi Motors Corp. will cut nearly 11,000 jobs, or 22 percent of its global work force, close an assembly plant in Japan and receive a $4 billion infusion from the Mitsubishi group and other investors under a revival plan its chief executive described as its "last chance."
Under the plan announced today, Mitsubishi Motors will keep open its U.S. plant in Normal, Ill., but will shutter an engine plant in Australia while keeping a passenger car plant there. The company will close a passenger car plant in Okazaki in fiscal 2006.
The automaker, burdened with more than 1 trillion yen ($9 billion) in debt, plunging car sales and a spate of recalls, also reported a much steeper than expected loss of $1.9 billion for the fiscal year ended March 31.
The automaker had been dealt a serious blow by a surprise announcement last month by U.S.-German automaker DaimlerChrysler that it would not provide a fresh cash infusion. Its image has been badly tarnished by recurring defect cover-ups that began four years ago.
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