Mitsubishi Motors to End US Production, Only Car Factory to Shut Down
After years of making cars in the United States, Mitsubishi has reportedly decided to shut down its U.S.-based plants.
The Associated Press reports that automaker Mitsubishi Motors has decided to end production in the United States to focus on the Asian markets. According to the Japanese newspaper the Nikkei, the automaker will cease production in Normal, Illinois and is attempting to sell the plant. It is the company's only plant in the United States.
According to MLive, the company decided to shut down because of low U.S. demand for Mitsubishi vehicles, an expiring union contract at its facility, and a decision to focus company attention on the Asian market. Over the years, the plant has produced several Mitsubishi models, including the Mitsubishi Eclipse coupe, Plymouth Laser coupe, Eagle Talon coupe, Mitsubishi Mirage sedan, Eagle Summit sedan, Mitsubishi Galant sedan and the Dodge Avenger coupe.
UAW Local 2488, which is the union that represents the plant workers, said that the union workers contract expires in August. Vice President Kyle Young said that despite this news, nothing changes and talks of negations are expected to be coming up in the coming months.
According to the Chicago Tribune, Mitsubishi Public Relations Manager Alex Fedorak addressed the issue, stating, "Following a review of Mitsubishi Motor Corporation's global supply chain, we have been informed it is necessary to end production and seek a strategic buyer for the Normal plant." He also stated that Mitsubishi will not be leaving the North American market.
The plant, established in 1988, currently employs 918 people. Originally the plant was under a 50-50 joint partnership between Chrysler and Mitsubishi, but in the early 1990s, Mitsubishi bought out Chrysler.
Mitsubishi UFJ Financial Group Inc. is headquartered in Tokyo, Japan and was founded in 1917.
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