Mitsubishi Motors chief quits today
Rolf Eckrodt resigned as chief executive and president of Mitsubishi Motors today after its US-German partner refused to help finance the struggling Japanese car manufacturer’s turnaround plan.
The Tokyo-based company, burdened with a multi-billion euro debts, plunging car sales and a spate of recalls, was dealt a serious blow by the DaimlerChrysler decision not to hand over more cash to aid a revival plan.
Analysts say Mitsubishi Motors’ lagging sales are likely to dip even further now and its chances for recovery are precarious because other Mitsubishi companies are unlikely to have enough cash to fund a revival plan.
The company image never recovered after it acknowledged four years ago that it had systematically hidden car defects for decades and announced a massive recall.
Eckrodt, a German, has said he felt responsible for the troubles .
“Of course I feel responsible. I would be stupid not to,” he said in February. ”We make a mistake, and for a mistake, of course, you take consequences.”
