Japan's Mitsubishi Motors Corp. said Wednesday it anticipates a group net loss of 60 billion yen (674 million U.S. dollars) for the current fiscal year through March, its first red ink in three years due to slumping global auto sales and a stronger yen.
The expected loss compares with its October forecast of 20 billion yen in net profit and a profit of 34.71 billion yen the previous year.
As part of cost-cutting efforts, the automaker said it will withdraw from the Dakar Rally.
"The sudden deterioration of the global economy made it necessary for the company to focus its resources more tightly," it said in a statement.
The company said it would withdraw from all Cross Country Rallying. It will also further cut executives' pay up to 40 percent starting in March, it added.
Mitsubishi Motors now expects a group operating profit of 5 billion yen, compared with its earlier forecast of 50 billion yen on sales of 2.01 trillion yen.
(Xinhua News Agency Feburary 5, 2009)
