TOKYO, May 21 (UPI) -- Mitsubishi Motors Corp. announced a restructuring plan that includes the elimination of 10,000 jobs, a plant closure and $4 billion in capital transfers.
The three-year plan is in response to the surprise announcement by DaimlerChrysler AG last month that it wouldn't invest any more to aid its 37 percent-owned Japanese affiliate.
The company said Friday the plan should allow it to cut overall costs by about $2.1 billion, the Wall Street Journal said.
As part of the rescue package, J.P. Morgan Chase & Co. will underwrite as much as $900 million of securities, according to company source. The securities will be issued as bonds, but the bonds will convert into preferred shares at a later date.
The turnaround plan calls for closing one of three final-assembly plants in Japan over the next three years and shrinking manufacturing operations in the United States and Australia to slash the company's global production capacity by 17 percent over the period.
The company also will reduce its worldwide work force by 22 percent to about 40,000, including a 30 percent cut in white-collar workers to 18,400.
