Mitsubishi Motors plans $2.1bn rights issue Mitsubishi Motors plans to raise up to Y210bn ($2.1bn) through a rights issue to repay other parts of the Mitsubishi group that rescued it almost a decade ago, in the clearest sign so far that the Japanese carmaker is returning to health. The move - on the back of buoyant Japanese stock markets fuelled by the stimulus package known as Abenomics - is likely to pave the way for the manufacturer to reinstate its dividend after a 15-year hiatus. Mitsubishi Motors was almost forced out of business in 2004 by a scandal involving vehicle defects that resulted in plunging sales. It emerged later that the company had attempted to cover up the faults. When DaimlerChrysler, then one of its biggest shareholders, decided not to provide more funds, sister companies within the Mitsubishi group rescued the carmaker by taking up almost Y400bn in preferred shares in 2004. Payments on the preferred stock - held by Mitsubishi Heavy Industries, Mitsubishi Corp and Bank of Tokyo-Mitsubishi UFJ - hindered the carmaker's ability to pay a dividend on its ordinary shares. Mitsubishi said it would issue an undisclosed number of shares over the next year, pending shareholder approval next month, in order to raise funds to redeem the preferred stock. Osamu Masuko, president of Mitsubishi Motors, said he wanted to make a decision on the future of the preferred stock by early 2014. Wednesday's announcement came as the Japanese carmaker outlined its new midterm business plan until 2016. It will concentrate on producing its core pickup trucks and SUVs, targeting increasing sales in Asian markets such as the fast-growing economies of Thailand, Indonesia and the Philippines. Mitsubishi has forecast net sales of Y2.6tn by 2016, up from the Y2.13tn expected in the year to March 2014. Operating income is predicted to grow from Y100bn to Y135bn in the same period. The news comes a day after Mitsubishi announced it would join forces with Renault and Nissan to develop cars and share manufacturing capacity. The French and Japanese carmakers intend to share technology and model platforms with Mitsubishi in exchange for expertise to develop a new mini-car, including an electric version to be sold around the world. Closer collaboration with the Renault-Nissan alliance would be a boon to Mitsubishi, which has struggled in recent years to match the growth of larger rivals such as Toyota. Shares in Mitsubishi Motors, which have risen over 60 per cent in the past 12 months, closed up 0.6 per cent at Y1,114 in Tokyo. Additional reporting by Mitsuko Matsutani