Mitsubishi on the brink after partner pulls plug

Japanese car giant Mitsubishi – burdened with multi-billion pound debts, plunging sales and a spate of recalls – suffered a major blow today when partner DaimlerChrysler ruled out pumping more cash into the company.

Shares in Mitsubishi Motors plunged by 25% in Tokyo, the day’s allowed limit, after DaimlerChrysler said it had “decided not to participate” in a planned capital increase.