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FINANCIAL NEWS
Egypt- Masria files lawsuit against Mitsubishi
19 Apr 2010
(MENAFN) Mitsubishi Motors Corp said in a statement that Masria Co., an Egyptian sales firm, is suing it for $900 million in damages, claiming that Mitsubishi unfairly ended a distribution contract.
Masria said in a suit filed in an Egyptian court that Mitsubishi’s termination notice lacked reasonable grounds and demanded an extension of the contract or damages of $900 million, equivalent to 56 percent of Mitsubishi Motors’ net assets.
Mitsubishi, Japan’s sixth-largest automaker, said it served a termination notice on Masria six months before the contract was due to expire, in accordance with agreed provisions.
Separately, the Japanese automaker slashed its estimate of annual operating profit by 54 percent to $149.7 million citing a drop in vehicle sales and the failure to fully meet its planned cost reductions.
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