Mitsubishi Motors has denied a newspaper report that it would stop building cars in the United States but repeated that pulling out of Australia remained an option.


Reuters said that the Nikkan Kogyo Shimbun business daily reported that the firm planned to halt production of Mitsubishi-brand cars at its Normal, Illinois, plant, its sole US production site and, after a planned capital injection by the Chrysler division of DaimlerChrysler into Mitsubishi’s US unit, the Illinois plant would produce only Chrysler-brand vehicles.


“The report is wrong. We want to give a clear statement that there are no such plans,” Mitsubishi Motors senior spokesman Jochen Legewie told the news agency, adding: “North America will continue to be a very important region for our profits but (production in) Australia is something we will look at in the long run.”


Reuters noted that, reeling under losses resulting from loan control problems at its North American finance unit, Mitsubishi is expected to unveil major restructuring measures, including a massive capital increase, on April 30.