Mitsubishi Motors (MMC) is to cut production at its factories in Japan by up to 100,000 units in five months from November due to slow sales.
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The automaker will cut the production of cars, such as sports utility vehicles, and is expected to revise down its planned global sales from the current 1.39m units in the business year ending 31 March 2009, the Kyodo news agency said.
MMC on Monday said its global production last month fell 2.2% to 121,449 units, the seventh consecutive monthly decrease.
Production in Japan was up 10.8% to 84,146 units as a 12.8% increase in passenger car output outpaced a 7.9% decrease in commercial vehicle output in the first monthly year-on-year increase since July this year.
The growth was due mainly to a 27.4% increase in output (33,382 units) of the new Lancer line to match demand from Russia, Middle East and African markets.
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By GlobalDataHowver, MMC sales in Japan in September declined 19.2% to 18,189 units, the 13th consecutive monthly decline since September 2007.
Overseas production last month fell 22.6% to 37,303 units, the seventh consecutive monthly decline.
Asia output declined 26% to 23,643 units as a 10% increase in Indonesia failed to offset the end of MMC model assembly at Proton in Malaysia.
North America volume was flat while European output reflected the change-over between Colt generations.
Exports from Japan fell 8.3% to 51,740 units, the first decline in 23 months. Exports to Asia were slightly up over last year, this was accounted for mainly by an increase in knock-down kit shipments.
Exports to North America were down 21.8% at 3,773 units while European exports were down 21.1% to 21,853 units, reflecting slower sales in western Europe.
MMC’s first fiscal half output fell 6.5% to 634,816 units, the first year-on-year decline since H1 2006.
Production in Japan rose 4.8% to 410,601 units due mainly mainly to a 13.8% hike in Lancer output and a 16.8% rise to 86,218 Outlander units for Europe and China.
Japanese market sales fell 17.3% to 83,298 units.
Asia production was off 21% to 150,256 units as MMC model assembly ended at Proton and Taiwan sales slowed.
North America production was down 27.9% ti 27,814 units and off 31.6% to 21,983 units at NedCar in Holland.
Total export shipments from Japan were up 6.0% year on year.
