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