Mitsubishi Motors Corp.'s three top executives stepped down Friday for failing to revive the ailing automaker, which announced the same day that it is receiving a 540 billion yen bailout halfway sponsored by other group firms.</PARAGRAPH>
<PARAGRAPH>The bailout is part of a new revival plan announced by the scandal-ridden automaker to restore its reputation among consumers and creditors under the guidance of Mitsubishi Heavy Industries Ltd., which spun off the automaker 35 years ago.</PARAGRAPH>
<PARAGRAPH>The new plan, which replaces the 'last chance' survival plan announced in May, will hopefully allow MMC to achieve a net profit of 8 billion yen in fiscal 2006 and 41 billion yen in fiscal 2007, the company claimed.</PARAGRAPH>
<PARAGRAPH>Critics panned the new plan for lacking details.</PARAGRAPH>
<PARAGRAPH>'Generating 41 billion yen will be absolutely impossible' unless MMC maps out a solid business strategy in the near future, said Koji Endo, an analyst at Credit Suisse First Boston Securities –
Ltd. MMC's latest plan includes no specific steps for increasing profits, he said.
But MMC chief financial officer Hiizu Ichikawa said that external consultants have reviewed the plan and claimed he was confident it would work.
"Despite our extremely conservative sales forecast, our measures this time will enable us to turn to the black," he figured.
Sales at MMC have been plunging in the wake of decades of defect coverups involving thousands of vehicles. The latest coverup, which also spurred recalls, surfaced last March.
