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Chrysler Group to Stop Production at Mitsubishi's Normal, Illinois Plant

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Khatir Soltani

While MMC was already planning to cut production at the Normal, Illinois plant as part of its restructuring

No doubt the lack of DaimlerChrysler revenue at the Normal, Illinois plant will make it more difficult for Mitsubishi to make its operations profitable. The redesigned Sebring sedan was expected to share Galant (shown) architecture. (Photo: Trevor Hofmann, Canadian Auto Press)
plan, the Chrysler Group business would have been revenue producing, in sharp contrast to overproducing Mitsubishi cars in an economic downturn, and not being able to recoup the production costs, at least initially. For this reason the DCX action is another blow to Mitsubishi.

There are some analysts, however, that are speculating the recent DCX actions are the result of bad blood between the two automakers, citing that MMC executives would not agree to 37.3 percent shareholder DCX's conditions, and therefore DCX is putting

Is DaimlerChrysler attempting to put a "stranglehold" on Mitsubishi due to prior bad blood? That's hard to say, but either way the next generation Sebring sedan (2003 model shown) will continue to be manufactured at one of DXC's plants. (Photo: Shawn Pisio, Canadian Auto Press)
the "stranglehold" on MMC. Such innuendo is unsubstantiated, however, despite making for good soap opera-style drama.

In fairness to Chrysler Group, while its new PT Cruiser Convertible and 300 series sedan are selling out around the country, many of its other models, including the Sebring and Stratus coupes, are stagnating in dealers' lots. The domestic automaker is involved in considerable cost cutting measures of its own, and external relationships are usually the first to fall under the axe.

In addition to the two Chrysler Group models, Mitsubishi makes the Galant midsize sedan, Eclipse sport coupe, Eclipse Spyder (convertible), and Endeavor midsize SUV at the Normal, Illinois plant. In total, 156,800 vehicles were built there during fiscal year 2003/04 ending March. Of these, 28,735 were Sebring and Stratus coupes.

Khatir Soltani
Khatir Soltani
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