Mitsubishi's New Plant Could Potentially Be in Canada
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| Mitsubishi's 2004 Endeavor, unveiled at the North American International Auto Show in Detroit earlier this month, is built in the Normal, Illinois plant. (Photo: Trevor Hofmann, Canadian Auto Press) |
Yesterday, Mitsubishi Motors Corp. announced that it would be deciding on the location of its new North American factory within the next few weeks, necessary to boost production to keep up with demand on its new cars and SUVs. Currently the Japanese based company can build up to 270,000 vehicles annually in their Normal, Illinois plant.
In a news conference President Rolf Eckrodt stated that Mitsubishi planned to reach the 400,000 vehicles sold mark for 2003, which would show an 11% increase of 2002 sales. The automaker's recent Canadian (Sept 2002) and Mexican (Feb 2003) market expansions are deemed to be reason enough for its bullish projections.
Positive news to Canadians is the chance Mitsubishi's new facility might end up north of the 49th. "We are evaluating where we want to place the additional capacity. The location of the factory is under discussion now," Eckrodt continued, adding that it could end up in Canada, Mexico or the U.S. "We are looking at various opportunities, and in the next few weeks we will have a decision."
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| The Lancer is Mitsubishi's smallest entry, making up for the majority of its North American sales. (Photo: Trevor Hofmann, Canadian Auto Press) |
Eckrodt also mentioned that it was considering the possibility of working together with stakeholder DaimlerChrysler AG's Chrysler Group, a move that industry analysts would most likely consider wise due to the opportunity for cost savings by both companies.
It's no secret that the Japanese company is not flush with cash therefore the question was posed regarding Mitsubishi's plans for funding the expenditure. Eckrodt responded by saying they are working toward financial improvements via "active and offensive asset management" that may include the sale of some of its holdings in South Korea's Hyundai Motor, while at the same time are considering divesting the Mitsubishi truck business. Making sure his point was clearly understood Eckrodt added, "We are not talking about any kind of capital increase."