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Mitsubishi Motors cutting U.S. production, jobs

 
3 1,362 views Jun 30, 2008
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Mitsubishi Motors cutting U.S. production, jobs

Mitsubishi Motors cutting U.S. production, jobs

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While Honda's sales in the U.S. are actually increasing, and Toyota and Nissan are losing only single-digits of production, Mitsubishi has decided to cut production and jobs in the face of decreased demand and poor market conditions.

The move will reduce output from the Normal, Illinois factory by about 9%, from 75,500 in 2007 to 69,000 this year. Mitsubishi will also reduce the company's U.S. workforce by about 5%, or 105 workers, mostly through early retirements, reports the Japanese newspaper Nikkei.

Mitsubishi's Normal, Illinois factory is capable of 110,000 units annual output, primarily Galant sedans and Endeavour SUVs. The latest cut puts the plant at about two-thirds capacity. While a significant reduction in U.S. output, the cuts are nothing in comparison to the huge reductions in output announced by the Big 3 Detroit makers earlier this year.



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Comments (3)

  1. By stewie Posted: 6/30/2008 6:17pm PDT

    That's a shame. I was really hoping that Mitsubishi would turn things around like Hyundai is in the process of doing.
     
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  2. By Hanzo Posted: 7/2/2008 9:24am PDT

    Right now Mitsubishi has only one car in its North American line-up that can be considered a compact and that is the Lancer. They do build the solid Galant 4 door sedan at their plant in Illinois that gets pretty good MPG when equipped with the 4 cylinder engine but the current perception among customers is that "midsize" is too big.

    The Mitsubishi worldwide line-up however is pretty fantastic in terms of fuel efficient vehicles. They have the Colt and the i car in most Asian and European markets along with the mini-vehicles they build for the Japan market.

    First, they need to get the new Colt to the U.S. dealers showrooms ASAP.

    Second, ramp up production of their all-electric i car for the worldwide markets.

    Third, plan production schedule for the Concept ZT and Concept RA at their U.S. plant in Illinois. Both those vehicles can be equipped with a wide variety of engines, including diesels.

    Although the knee-jerk attitude among many is for Mitsubishi to cut and run, the fact is that with the Big 3 downsizing taking place there is an opportunity for smaller companies to increase their sales providing they can give the consumer what they want. Look at what Kia and Suzuki are doing right now. While the new car market will be forever changed from now on, rest assured that it will be back, albeit with a much different look. Mitsubishi only has one production facility in North America and if they lose it they will probably never get another one. Time for them to let North America have the pick of the entire Mitsubishi line-up.
     
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  3. By  wii light gun Posted: 1/9/2010 9:07pm PST

    They could find a large market in Brazil for FFVs and if they got into PHEV, they could make a come back in the U.S. They are known for innovation, so they need to stay on that curve or be just another car company.
     
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