Tokyo, Feb 18: Barely a year after declaring itself “back on track”, Mitsubishi Motors appears to be back at square one amid reports of bigger losses, more restructuring and the dismissal of its German chief executive. Japanese business daily Nihon Keizai Shimbun (Nikkei) said on Tuesday that Japan`s fourth-largest auto maker was set to close one of its three domestic plants within three years and could sell its joint ventures in Malaysia and the Philippines, among others, to raise funds and cut costs.

The paper also said 37% owner DaimlerChrysler would send a new president as early as April to replace Rolf Eckrodt, who had been enlisted 20 months ago to steer a debt-laden, scandal-hit Mitsubishi back to health. Mitsubishi said the report was based on speculation, but many analysts expect an announcement along those lines. “We believe that for Mitsubishi to revive itself, it is indispensable that there are new personnel appointed to senior positions who have a good grasp of Mitsubishi`s business and the leadership abilities to see the company through this period,” an analyst, Nikko Citigroup said. With Mitsubishi Motors in need of funds to develop cars, DaimlerChrysler and other Mitsubishi group firms are expected to extend it 200bn yen ($1.9bn) soon. Analysts worry that won`t be the last time Mitsubishi draws on its partner`s cash. DaimlerChrysler faces a more urgent task of reviving its tattered US Chrysler division, and can`t afford to let anything slip at its money-making Mercedes arm. The German-US auto maker has already extended 52bn yen to shore up Mitsubishi`s balance sheet by buying an additional 22% stake in its healthy truck-making arm. The Nikkei also reported this week that poor sales in the US would push Mitsubishi`s group operating loss for the year ending March to about 100bn yen in what was meant to be the final year of three years of restructuring. That would be more than double the 45bn yen loss projected three months ago and a far cry from the 82.8bn yen profit booked last year. Bureau Report