Report: Mitsubishi Motors needs €2bn

A German newspaper report quotes a Mitsubishi official as saying that Mitsubishi Motors Corp (MMC) needs at least €2bn fresh capital from shareholders DaimlerChrysler AG and the Mitsubishi group.

The report said as part of the capital injection, Mitsubishi is prepared to give up its remaining shares in truckmaker Fuso, generating some €300m.

It also said DaimlerChrysler wants MMC to cut worldwide capacity, and cut personnel and production costs by a two-digit percentage in an aim to make the group profitable again by 2007.