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Investing.com – Japanese automaker Mitsubishi Motors Corp. (T:7211) saw its shares plunge to a record low as sales in key markets fell.
Mitsubishi’s Tokyo shares plunged 11.90% to JPY237 ($2.2474) by 12:23 AM ET (5:23 AM GMT), their lowest point since the company’s listing in 1988.
The company projected an operating loss of JPY140 billion ($1.32758 billion) for the year ending on March 31, 2021 on Monday, its biggest in almost two decades according to records that date back to 2002. Falling sales in key markets, such as China and South East Asia, were exacerbated by the COVID-19 virus. The South East Asian market accounts for a quarter of Mitsubishi’s sales.
Considering the heavy losses, the company announced a restructuring plan, which involves discontinuing the company’s Pajero SUV crossover model in 2021 and closing the plant that manufactures the model. The plan also involves concentrating on growth in the Asian market and reducing presence in Europe and North America.
