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80 mitsubishi motors corporation annual report 2008
Since the entities combined are consolidated subsidiaries in the automobiles segment, these transactions are treated as transactions
under common control. Thereby the combined entities’ transactions are properly accounted for based on the appropriate book values in
the stand-alone accounts and are properly eliminated as inter-company transactions in the consolidated accounts.
Additional acquisition of subsidiaries’ shares is as follows.
In millions of yen
In thousands of
U.S. dollars
Acquisition consideration (cash and deposits) ¥920 $9,182
Acquisition cost ¥920 $9,182
From additional acquisition of subsidiaries’ stocks, goodwill of ¥3 million ($29 thousand) is charged to income as incurred.
During the year ended March 31, 2007, in order to improve the efficiency of its sales network by the integration of domestic sales
companies, MMC merged its consolidated subsidiaries as follows.
1. Business of the entities combined:
Sale of vehicles, etc
2. Description of business of the entities combined:
Sale of vehicles, etc
3. Legal form of business combinations:
Absorption by surviving company
4. Corporate name before and after the business combination:
April 1, 2006
Corporate name before the business combination Corporate name after the business combination
Surviving company: Shimane Mitsubishi Motors Sales Co., Ltd. Sanin Mitsubishi Motors Sales Co., Ltd.
Non-surviving company: Nishi Tottori Mitsubishi Motors Sales Co., Ltd.
July 1, 2006
Corporate name before the business combination Corporate name after the business combination
Surviving company: Saitama Chuo Mitsubishi Motors Sales Co., Ltd. Saitama Mitsubishi Motors Sales Co., Ltd.
Non-surviving company: Saitama Mitsubishi Motors Sales Co., Ltd.
Surviving company: Iyo Mitsubishi Motors Sales Co., Ltd. Ehime Mitsubishi Motors Sales Co., Ltd.
Non-surviving companies: Uwajima Mitsubishi Motors Sales Co., Ltd.
Matsuyama Mitsubishi Motors Sales Co., Ltd.
Since the entities combined are consolidated subsidiaries in the automobiles segment, their transactions are treated as transactions
under common control. Thereby the combined entities’ transactions are properly accounted for based on appropriate book values in the
stand-alone accounts and are properly eliminated as inter-company transactions in the consolidated accounts. Moreover, there are no
additional acquisitions of shares from minority interests of the entities combined.
22. Subsequent Event
On May 19, 2008 the MMC group entered into a contract for a joint plant in Russia with PSA Peugeot Citroën to produce vehicles under
Peugeot, Citroen, and Mitsubishi brands.
The joint plant will be constructed in Kaluga state in Russia to start production in 2011.
The annual production capacity of the plant will be 160,000 units and plans are to produce mid-range SUVs under Mitsubishi, Peugeot, and
Citroen brands and mid-range models under Peugeot and Citroen brands.
The MMC group will bear 30 percent of the total 470 million Euro contribution into joint ventures. On the other hand, PSA Peugeot
Citroën will bear 70 percent of the contribution.