afrol News, 19 April

Japan's automaker, Mitsubishi Motors Corp has confirmed it will contest a lawsuit laid by an Egyptian sales company Masria Co for breach of contract.

The Egyptian company has filed the lawsuit in a local court claiming that a termination notice on its contract was not sufficient and is trying to get an extension or up to US$ 900 million in damages.

However, Mitsubishi contests that it gave a notice of termination six months before the expiry of the contract, which it believes was sufficient enough. The company has further denied accusations that its reducing the company's profit estimates had nothing to do with the lawsuit.

The automaker has announced a reduced annual operating profit citing a drop in vehicle sales as well as failure on its part to meet the planned cost reductions. The company also mentioned the economic downturn as well as the weakening Japanese yen against other currencies for its losses.