- Mitsubishi Motor Corp shares plunged over 10 per cent
- The company will stop production of Pajero SUV in 2021
Due to the ongoing Coronavirus (COVID-19) pandemic, the Japanese vehicle manufacturer, Mitsubishi Motor Corp has reported over 10 per cent drop in shares after the automaker posted dismal sales in its key Southeast Asian market. Moreover, the company forecast a huge loss for this financial year. As a result, the company will discontinue its iconic 4x4 SUV, the Pajero in 2021.
The company has projected an operational loss of 140 billion Yen ($1.33 billion) for the year ending on 31 March, 2021. As per records dating back to 2002, this is the biggest loss in 18 years. Mitsubishi has already discontinued the Pajero in its home market. However, the company’s facility in Gifu Prefecture town of Sakahogi in Japan Prefecture town of Sakahogi in Japan has been making Pajero units for exports. This facility will be closed with the end of production of the Pajero SUV.
Additionally, it is learnt that Mitsubishi will gradually reduce its presence in Europe and North America and will focus on growth in Asia. It is believed that the restructuring plan will help in increasing the company’s operating profit to 50 billion Yen in 2022/23 and will boost the operating profit to 2.3 per cent.
