Newswire

M'bishi Motors to spend Y6.6 bln on recall, repair

TOKYO, Nov 21 (Reuters) - Japan's Mitsubishi Motors Corp said on Friday the recall and repairs of five models it announced a day earlier would cost about 6.6 billion yen ($60 million) but not affect its earnings forecasts.

Japan's fourth-largest auto maker, owned 37 percent by DaimlerChrysler , said on Thursday it would recall more than 360,000 Galant, Galant Aspire and Legnum sedans, and about 11,000 Grandis minivans worldwide.

It also said it would repair 75,528 Pajero Mini recreational vehicles sold in Japan and built between September 1998 and November 2001. The defect, in the car's automatic transmission, could cause the vehicle to slide when in parking mode but does not fall under the recall category.

The announcement is another setback for Mitsubishi Motors, which is trying to improve its image after a huge recall scandal rocked the company three years ago.

Last week, the auto maker reported a huge interim loss and slashed its forecasts for the full business year to March, citing financial troubles at its North American finance unit.

It now expects a group net loss of 11 billion yen and an operating loss of 45 billion yen, reversing its July projections of a net profit of 10 billion and an operating profit of 60 billion.

Shares in Mitsubishi Motors ended the morning session up 0.9 percent at 223 yen after the news. The TOPIX index was flat. ($1=108.95 yen)