Mitsubishi Motors has halted one of the four production lines at its mainstay car plant in Okayama Prefecture since late November due to slack demand in Europe and falling profit on exports because of the yen’s appreciation, company sources said.
The Mizushima plant is now operating at about 60% of its capacity totaling about 600,000 cars a year, a news agency report said. The halted production line, with annual capacity at about 130,000 units, had been used for the Lancer and other cars for markets such as Europe.
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Slumping overseas demand has also prompted MMC to retreat from its earlier plan to expand output to make up for a drop in production in the wake of the 11 March earthquake and tsunami in northeastern Japan.
