Report: Mitsubishi to stop making cars in US; will focus on Asia

Report: Mitsubishi to stop making cars in US; will focus on Asia image

Text: Marcus De Guzman / Photos: Mitsubishi | posted July 27, 2015 13:19

Mitsubishi's only US factory to be sold, sales operations to continue

Production of Mitsubishi cars in the US will soon cease as the company will reportedly sell their only plant in the country to other auto manufacturers.

Mitsubishi has not yet made an official statement about the closure of their factory in Normal, Illinois, but according to Nikkei Japan, the move was made to direct all of its remaining resources to the growing Asian market.

A spokesperson for Mitsubishi Motors North America stressed that the company has no plans to stop selling vehicles in the country as they are still focused on improving their sales in the US.

Currently, Mitsubishi is looking for a buyer for the soon-to-be vacated plant that was originally put up back in 1988 as a joint venture with its former partner, Chrysler. In addition, the automaker is also in talks with labor representatives to maintain employment of the plant’s 918 workers.

However, Normal Mayor Chris Koss and Vice President of United Automobile Workers (UAW) union group Kyle Young, both stated that haven’t received any official word from Mitsubishi about the planned closure and selling of the factory. Young even added that the workers at the factory are still assembling automobiles.

Despite being one of the smallest players in the US market, Mitsubishi Motors North America was still able to churn out 69,178 units of the Outlander Sport (ASX) last year. Moreover, the company’s US sales increased 25% to 49,544 units this year through June on a 17% increase in Outlander Sport deliveries. The company also raked in a 40% growth in overall car volume.

Source: Nikkei via Automotive News Europe