Floundering Illinois Mitsubishi plant to stay open through August 2012
10/06/2008, 5:06 PM
By Andrew Ganz
Mitsubishi’s Normal, Illinois, factory, which began as a joint-venture between Mitsubishi and Chrysler (then called Diamond Star Motors), has struggled of late, producing fewer than 100,000 cars annually. Yet over the weekend, Mitsubishi and the UAW agreed to a program that will keep the plant open until at least August 2012 in exchange for some pay cuts.
The plant has the capacity to produce nearly 1/4 of a million vehicles, but can be profitable if it produces over 100,000. The factory makes Mitsubishi’s Galant, Eclipse and Endeavor, none of which have posted strong sales in recent years.
Mitsubishi’s president, Osamu Masuko, acknowledged the plant’s difficulties when he spoke to Automotive News recently.
“We are seriously re-evaluating our U.S. operations as to what kind of automobiles we should manufacture there, and eventually we hope to announce our decision,” Masuko said.
“It is very difficult to sell the kinds of cars we are producing in this factory.”
Masuko didn’t suggest what Mitsubishi might produce in the factory that would return it to profitability – and help bolster the struggling automaker’s slipping sales in the U.S. market.
10/06, 5:17 PM
posted by:
Madcapp
If they started building the Mitsibishi Starion there with a modern interior, they’s have to work around the clock to keep up with the demand.
10/06, 5:41 PM
posted by:
rds130
Build the “i” MIEV there and I’d buy 2
10/06, 5:51 PM
posted by:
TOZO
The UAW there will not have any power there if Mitsu just closes the plant before 2012. It’s a 1-plant union. It’s only good for wage control, but not for plant closings. GM, Ford, & Chrysler UAW workers wont help. With the way Mitsubishi sales are going, it may be better to close the plant, and just sell Lancer-based vehicles made in Japan, maybe even a Lancer-based Eclipse.
10/06, 11:41 PM
posted by:
HRR
Who buy’s these POS’s anyway?
10/07, 6:58 AM
posted by:
ricky_b
I was just thinking about Mitsubishi this past weekend. I had a hard time thinking of the models they still sell in America… and I’m a serious car nut. TOZO has it right. They have some good technology but most is in just the Lancer EVO. They need to spread to the Eclipse, Galant and maybe even the Outlander. Otherwise it could by sayanora Mitsubishi.