Mitsubishi Troubles Mount Amid Recalls

July 7, 2004
There seems to be no end to the bad news afflicting Mitsubishi Motors Corp., Japan's fifth- largest carmaker. As the company prepared to recall 53,926 cars and vans to fix defective engine parts, a bus that's at the center of a recall scandal caught fire on a Japanese roadway.

Mitsubishi Motors is recalling 18 models of vehicles including Libero and Lancer cars and Delica vans to fix the latest round problems. Most of the affected models are sold outside the U.S.

The fire outside Fujioka completely destroyed the Mitsubishi Fuso bus. The driver stopped after he noticed white smoke coming out from below his seat and quickly let all 16 passengers off the bus before fire spread. The model was involved was the subject of a 2002 recall for a defective switch.

Mitsubishi and its Fuso affiliate have recalled as many as 800,000 cars, trucks and buses this year after allegations that the company covered up safety problems and consumer complaints for more than two decades.

As many as 10 Mitsubishi executives have been arrested this year and charged with falsifying safety records.

Mitsubishi, the only unmprofitable Japanese automaker, is 37 percent owned by DaimlerChrysler, which is said to be eyeing ways to dismantle their alliance.

Citing industry sources, the Financial Times said DaimlerChrysler was set to reclassify its investment in Mitsubishi Motors Corp. as "non-strategic and available for sale" later this year.

It's also reported that the company's new chief operating officer plans to fire an unknown number of workers at the company's U.S. assembly plant in Normal, IL, to reduce expenses.

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