Mitsubishi Motors reportedly plans to end car production in the US.
A Reuters report said the automaker, which had declined to comment, was facing declining US demand and an expiring union contract at its only plant in North America.
Go deeper with GlobalData
Japan’s Nikkei news service had said the plan to end production at Mitsubishi’s plant in Normal, Illinois, was part of a strategic shift to the growing Asian market.
The company has “no statement,” a spokesperson for Mitsubishi Motors North America, told the news agency.
The Nikkei said Mitsubishi would look for a buyer for the plant, which opened in 1988 as a joint venture between Mitsubishi and its then-partner, Chrysler. The report also said Mitsubishi would begin negotiations with labor representatives to maintain employment for the plant’s 918 workers, who are represented by the United Auto Workers union.
A local mayor and union representatives said thay had heard nothing of closure and were expecting contract negotiations to begin soon.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe Normal plant is the only Japanese-owned US car factory whose hourly workers are represented by the UAW, Reuters noted.
At its peak in the early 2000s, Normal built over 200,000 cars a year. Last year, production of the Outlander Sport utility vehicle [aka ASX] totaled 69,178, according to Mitsubishi.
