Mitsubishi, Merrill tie up in car loan

Mitsubishi, Merrill tie up in car loan

TOKYO: Troubled Japanese automaker Mitsubishi Motors Corp.
said on Saturday it will tie up with Merrill Lynch and Co. in
North American financing operations as part of its business
rehabilitation efforts.

The two companies are also considering establishing a joint
venture tasked with collecting automobile loans and raising funds
as early as this year, Mitsubishi Motors said.

"In an effort to improve (Mitsubishi Motor's) financial
standing by reducing assets and interest bearing debt, the
company decided to sell-off a portion of the assets of Mitsubishi
Motors Credit of America Inc," the firm said in a statement.

Mitsubishi Motors will sell about US$2 billion worth of
assets, such as lease and loan receivables, to Merrill Lynch out
of the total $4 billion assets held by Mitsubishi Motors Credit
of America. -- AFP