ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, August 2, 1996 TAG: 9608020014
SECTION: BUSINESS PAGE: A7 EDITION: METRO
DATELINE: TOKYO
Mitsubishi Motors Corp. said Thursday it is pumping $540 million into its money-losing U.S. subsidiary, which is facing a sexual harassment lawsuit.
The new capital will be used to repay part of the huge debt of Mitsubishi Motor Manufacturing of America. The unit, burdened by sluggish sales since opening its plant in Normal, Ill., in 1988, is the target of a sex-harassment suit by the U.S. Equal Employment Opportunity Commission that has led to a boycott of its vehicles by civil and women's rights groups.
The Japanese automaker said in May it would take a one-time charge of 32.6 billion yen ($304 million) to write off losses from the U.S. subsidiary.
The harassment lawsuit alleges that male workers at the Normal plant groped and made obscene remarks to hundreds of female co-workers. The U.S. unit said it has punished offenders. It also hired former U.S. Labor Secretary Lynn Martin to investigate the charges and form a plan to ensure fair treatment of women at Mitsubishi.
-Associated Press
LENGTH: Short : 29 linesby CNB