Mitsubishi Electric's auto-related unit may accept external capital
Japan's Mitsubishi Electric Corp. is considering accepting external capital for its slumping automobile system and equipment unit, it has been learned.
Prospective investors in the Tokyo-based subsidiary, Mitsubishi Electric Mobility Corp., are believed to include Taiwanese electronics giant Hon Hai Precision Industry Co., informed sources said.
Mitsubishi Electric apparently hopes to run Mitsubishi Electric Mobility jointly with a company that has a competitive edge and sophisticated management capability to improve the subsidiary's business value.
The major Japanese electronics maker spun off its loss-making automobile-related division into Mitsubishi Electric Mobility in 2024, with an aim to speed up decision-making.
Mitsubishi Electric has said in a statement that the firm is considering the possibility of selling part of its equity stake in Mitsubishi Electric Mobility to a company outside its group or an investment fund, from the perspective of improving the business value of the unit.
Mitsubishi Electric is promoting the reform of its business structure, such as pulling the plug on nonprofitable operations.
[Copyright The Jiji Press, Ltd.]
