Mitsubishi Motors Corp. will transfer propeller shaft and front axle production away from its Oye plant in Japan, AutoAsia Online reported.
The website said that MMC transferred production of differential and drive transfer production last September and the latest move will mean that about 95 percent of component production is outsourced.
AutoAsia said that MMC wants to focus on R&D, vehicle assembly, engine production and marketing by extensive outsourcing under the MMC turn-around plan.
The website quoted an MMC statement saying: “Outsourcing production of these and other components, which offer volume-production benefits, enables the company to reduce production costs as well as further strengthen the corporate base by selling off surplus plant and reducing payroll. The outsourcing will also enable the company to make other use of the vacated land from 2003 onward.”
Production of front axles for the Challenger, Chariot Grandis and Pajero iO (Shogun Pinin in Europe) models will be transferred to ADVICS Co. in early May, AutoAsia Online said, with Aisin Takaoka reponsible for knuckle machining, hub machining and knuckle and hub assembly.
Production of propellor shafts for the Pajero, Challenger and Chariot Grandis will be transferred to Showa Corp in mid-August, AutoAsia Online added.