The Japanese car maker, which has seen sales fall sharply since it admitted last year to covering up defects in its vehicles, is already in the midst of a restructuring begun early last year that included job cuts in Japan. But, the new plan will expand and accelerate the programme, due largely to pressure from German executives dispatched by DaimlerChrysler to move more quickly.

Under the restructuring plan, Mitsubishi Motors will cut its current lineup of two dozen passenger cars by about half, an individual familiar with the plan said. Mitsubishi will also share basic components of some Sedans with Chrysler to save on development costs, two people familiar with the plan said.

Mitsubishi is also likely to announce the closing of its 81-year-old Oye factory near the central-Japan city of Nagoya. The Japanese auto maker will cut some 8,000 jobs, said an individual familiar with the plan; that would represent about 12 per cent of its worldwide work force of about 6,000 as reported by the company. But, it wasn't clear whether those cuts would be in addition to the previously announced plan to trim about 1,000 workers in Japan.

Mitsubishi's latest troubles began in July when it admitted it had systematically concealed customer complaints that could have led to recalls by regulators. Mitsubishi President Takashi Sonobe's predecessor, Katsuhiko Kawasoe, resigned under pressure to take responsibility for the scandal.

Mitsubishi has suffered double-digit percentage declines in its Japanese sales in four of the six months since then, including a 10 per cent decline last month.