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Poor MMC 2004 Auto Sales in USA
Mitsubishi Cars Problems in USA
Mitsubishi Motors North America Corporate news
Normal Plant Restructuring
July 21,2001. Mitsubishi Motors North America said that it will cut manufacturing at its Normal, Illinois plant from 2 shifts to one beginning October, and cut 1,200 jobs in the process. Currently it employs 3,150 workers, 2,670 of whom are members of United Auto Workers Local 2488. [mitsubishisucks.com has full sympathy for the workers, suppliers and the dealers who are paying the price for the mistakes of others.]
July 16, 2004. MMC indicated that Normal plant's production may be cut to 120,000 a year in view of lower demand for its vehicles in the USA. Nihon Keizai Shimbun reported that 600 to 700 could their jobs at the manufacturing plant.
July 7, 2004. Tokyo. In an interview in Tokyo with Automotive Weekly, Mitsubishi Motors President and Chief Operating Officer Hideyasu Tagaya said, "We have a plan that includes reducing the work force, and we'll adjust North American production capacity to an appropriate level." (Kyodo News)
June 16, 2004. MMC announced modification to its current restructuring plans. Details in the Japan News section. However, Mitsubishi Motors Japan said that it is planning to cut number of US workers and their salaries.
May 26, 2004. Bloomberg reported that Chrysler has decided to stop using Normal plant to manufacture its Chrysler Sebring and Dodge Stratus coupes after June 2005. Currently about 28,500 of these are made each year at Mitsubishi Motors' plant besides MMNA's own Galant sedans, Endeavor sport-utility vehicles, and Eclipse and Spyder coupes. It made 156,800 vehicles during the year ending March 2004. Production capacity is about 240,000. Means poor capacity utilization.
Chrysler's CEO Dieter Zetsche said in an interview that Chrysler and Mitsubishi Motors still plan to use a common chassis for upcoming models such as the Dodge Neon, Sebring and Stratus, and the Mitsubishi Galant. Chrysler also plans to supply a pickup truck to Mitsubishi based on its Dodge Dakota.
Note: May 24. mitsubishisucks.com thinks that, based on its subjective evaluation, voluntary redundancy packages, when and if offered, deserve serious considerations. Good luck.
Restructuring Announcement
May 21, 2004. Tokyo. MMC has issued the statement that "Profitability in North America will be achieved by maintaining a balance between supply and demand. In particular, MMC will review an adjustment to production capacity at its Illinois plant, cut back on incentives and the ratio of fleet sales, and launch new and special edition cars: 3 models in fiscal 2005. " and
"Despite the recent problems we have faced in the US, North America remains a top priority for us. We are fully committed to getting our North American operations back on track to pave the way for future growth there." and
The company plans to add 7 new models to the USA market by 2007, stating that "The new cars will be steeped in "Mitsubishi Motors DNA," which is best summed up by MMC's SUVs-as typified by the Pajero-and the sporty, driver-oriented traits found in the Lancer Evolution."
We will be commenting on this by the end of coming weekend.
Mitsubishi's Normal Plant to Survive in Scaled-down version
May 19, 2004. While we are waiting for the Tokyo decision, recap on Bloomington-Normal plant's activities: This is one of the most efficient auto plants in the USA. It produced 175,000 vehicles last year for Mitsubishi and Chrysler in 6 models including Galant, Eclipse, Endeavor SUV and Sebring coupe. Last year, in Normal, Illinois, 300 jobs were to be added but that plan was put on hold because of declining auto sales. Last March, many positions were cut and about 200 employees took voluntary severance package. Total annual production is expected to be cut from 240,000 to 160,000 units. mitsubishisucks.com thinks that by year end this number could be revised further downwards and recommends Mitsubishi workers who manage to escape unscathed this time, to intensify their job searches for the most likely 'eventuality.'
May 15, 2004. Nikkei, Japan's influential business newspaper reported that while two plants are going to close - Adelaide one in Australia, and Pajero Manufacturing in Japan - Normal plant wil survive, albeit in a scaled down version. Mitsubishi Motors plans to focus on Asian markets' growth and will concentrate on Pajero and subcompant models like Lancer - reducing number of chassis used in its cars from the current 11 to around 5-6. Normal produces models like Eclipse and redesigned Galant.
April 30, 2004. Tokyo. New CEO, Yoichiro Okazaki, of MMC Japan was quoted as saying that his focus will be on the US market and the Japanese market. Gives some hope for the Normal plant.
March 30, 2004. According to Reuters, Nihon Kogyo Shimbun of Japan reported that Mitsubishi Motors is planning to stop building cars at its Normal, Illinois plant, its sole U.S. production site. Sources say that Normal plant will be used for producing Chrysler-only autos. Furthermore Nihon Keizai Shimbun reported that Mitsubishi Motors' top 5 execs - Rolf Eckrodt, Steven Torok, Ulrich Walker, Eiji Iwakuni and Keiichiro Hashimoto would be asked to resign around June in order to restructure its operations.
April 2, 2004. Bloomberg reports that Steve Torok, in charge of the Japanese carmaker's business outside Japan including the U.S., will resign today, according to the company.
April 3, 2004. Nikkei reports that agreement has been reached between Mitsubishi group in Japan and DaimlerChrysler to appoint Andreas Renschler as president and CEO of Mitsubishi Motors in June. In addition, a large-scale production cut will be made at its factory at Normal, Illinois.