MMC is Closing Japanese Plant and Toyota is Picking Up Trained Workforce
It shouldn't come as news that Mitsubishi Motors Corp. (MMC) has been undergoing financial challenges of late, as the subject has
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| As part of its new restructuring plans, Mitsubishi will shut down the Okazaki, Japan plant that makes the Colt subcompact (shown) and Grandis minivan at the end of this year. (Photo: Mitsubishi Motors North America) |
On Thursday, July 15th MMC received a combined 200 billion yen (USD$1.83 billion) in investment from J.P. Morgan Chase & Co. and Phoenix Capital, bringing its total restructuring package to 496 billion yen (USD$4.53 billion).
"MMC has raised new capital of 496 billion yen, which is 46 billion yen more than the recapitalization measures set out in the company's revitalization plan announced on May 21," stated Japan's 4th largest automaker in a
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| Although the plant that makes the Grandis minivan (shown) and Colt subcompact is closing, 400 ex-Mitsubishi workers will find new jobs with rival Toyota. (Photo: Mitsubishi Motors North America) |
Part of that implementation is to cut workers and lower production at its domestic (Japanese) and North American facilities. With regards to the former, MMC plans to shutter its Okazaki plant in central Japan at the end of this year. The only silver lining, for the workers at least, is a slap in the face to financially strapped MMC, however, as cash rich Toyota announced on Wednesday, July 21st it would hire 400 of those losing their jobs at the MMC plant.
It makes sense for Toyota, running at full capacity, picks up MMC's highly skilled, fully trained workers, but it must come as a psychological blow to MMC to know these workers might never return.