MMC's Colt compact and Grandis minivan factory is located in the Aichi prefecture, which is in close proximity to several Toyota plants.
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| Mitsubishi Motors North America will lay off 1,200 workers from the Normal, Illinois manufacturing plant that produces the all-new award-winning 2004 Galant. (Photo: Trevor Hofmann, Canadian Auto Press) |
It was a kind gesture for MMC just the same, as the automaker has been negotiating the deal with Toyota for weeks now. MMC had previously committed to relocating its 1,600 Okazaki plant workers to other Japanese facilities, but then started the talks when realizing that many employees would rather remain in Okazaki than uproot their families and move elsewhere.
"We are looking into re-employment opportunities with other local businesses for workers who will find it hard to relocate or wish to look for new employment," MMC commented in a statement. MMC also has 200 mature workers at the plant that are being offered early retirement packages.
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| "This capacity adjustment will put us on a more solid foundation for long-term sustainable growth and profitability," states Finbarr O'Neill, chairman and CEO, Mitsubishi Motors North America. The Normal, Illinois plant also produces the sporty new Endeavor crossover SUV. (Photo: Trevor Hofmann, Canadian Auto Press) |
The cuts continue at the automaker's only U.S. manufacturing plant in Normal, Illinois. Mitsubishi Motors North America (MMNA) will lay off 1,200 workers before it eliminates one of two production shifts in October of this year. The automaker says the volume reduction is part of "strategic efforts" to align production output with customer demand, which should improve long-term profitability.
"We have significantly reduced our dependence on fleet sales and eliminated risky consumer financing products, which have resulted in lower sales volumes. As we work to rebuild natural retail demand for our vehicles, our production volumes must be adjusted accordingly," commented Finbarr O'Neill, chairman and chief executive officer, Mitsubishi Motors North America. "This capacity adjustment will put us on a more solid foundation for long-term sustainable growth and profitability. We need to be a market-driven, not a production-driven company."