Mitsubishi Motors says it will receive 450 billion yen in aid from the Mitsubishi group and other sources to fund a revitalisation of its battered operations.
Announcing a keenly awaited rescue package, delayed for three weeks after DaimlerChrysler refused to take part, Japan's fourth-largest car maker said on Friday it aimed to show a recurring profit by the business year starting next April.
Its three main shareholders in the Mitsubishi group - Mitsubishi Heavy Industries, Mitsubishi Corp and the Bank of Tokyo-Mitsubishi - and others will buy a total of 140 billion yen (€1.039 billion) in preferred shares.
BTM and Mitsubishi Trust & Banking Corp, both part of the Mitsubishi Tokyo Financial Group, will also exchange a combined 130 billion yen of debt owed by Mitsubishi Motors for equity.
The Mitsubishi group will contribute a total 270 billion yen to the scheme.
Separately, Phoenix Capital, a Tokyo-based investment fund with close ties to the Mitsubishi group, and J.P. Morgan Chase will buy a total of 170 billion yen of shares.
As part of its effort to overhaul its loss-making operations and boost efficiency, Mitsubishi Motors, owned 37 per cent by DaimlerChrysler, said it would close an engine plant in Australia in 2005/06 and shrink its assembly plant there.
The company also plans to cut 30 per cent of its global non-factory workforce.