Mitsubishi Motors shares drop to a record low
Citing heavy losses, the automaker announced a restructuring plan
Stocks impacted: Mitsubishi Motors Corp. (7211)
Japanese automaker’s stocks plunged to a record low after the company posted weak quarterly sales in its key Southeast Asia market due to the coronavirus pandemic. The South East Asian market accounts for a quarter of Mitsubishi’s sales. Also, Mitsubishi Motors said that it expects to see a 140-billion-yen loss in operating income for the year ending March 31, 2021, its biggest in almost two decades. Citing heavy losses, the automaker announced a restructuring plan. The plan involves concentrating on growth in the Asian market, discontinuing its Pajero SUV crossover model in 2021 and closing the plant that manufactures the model. The news about dismal sales in Asia sent Mitsubishi shares down nearly 13% to an all-time low of JPY235.
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