Issues with HM
Senior executives at Mitsubishi are keen on resolving issues related to the Chennai Car Plant, which belongs to both the C K Birla Group-promoted Hindustan Motors and Mitsubishi Motors. Both have been discreet about ownership of the plant. Mitsubishi is keen to take it under its fold before any expansion steps.
"The attitude (of Mitsubishi) towards India has changed ever since the financial recovery began last year. We do not wish to waste any more time. There were several issues which were unattended due to lack of participation from HM," said a senior executive from Mitsubishi Motors.
Mitsubishi shares a technical tie-up with HM, a Kolkata-based and loss-making company, for the Chennai plant, where it makes the Lancer, Cedia, Pajero and Outlander models. The Japanese company has also shown interest in having equity participation in HM, which makes the once-iconic Ambassador. HM recently reported a 50 per cent erosion in net worth, following which the matter was reported to the Board for Industrial and Financial Reconstruction.
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