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Thread: Mitsu might sell its only North American plant (Normal, IL, USA)

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    Senior Member grsupercity's Avatar
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    Mitsu might sell its only North American plant (Normal, IL, USA)

    Just outside of Chicago sits Mitsubishi's only North American automobile plant. There UAW contract ends in August. They are considering not renewing there contract and selling the plant. That would be a huge loss. 1, its 918 people out of business. 2, The factory brings in 120 Million to Normal IL. 3rdly it wont look good to potential buyers seeing Mitsubishi ending production in America all over the TV.

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    I love everything about Mitsubishi!!!!

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    The plant is growing older and is the only auto plant owned by a foreign manufacturer that has workers represented by the UAW. The plant got a ton of tax "incentives" when it was built, all of which have expired.

    None of the above bode well for Mitsubishi retaining the plant.

    On the other side, the brand is doing well in the US and publicity about them moving production offshore would probably not be what they would like to see, even though this is common practice for "American" brands.

    The plant also manufacturers the Outlander Sport, which is a great seller for Mitsubishi.

    I'm guessing that the option of moving production elsewhere in the world is a bargaining chip for contract renewal. Got to be less expensive to ship vehicles within the US after production, as opposed to half way around the world.

    Just have to wait and see how the negotiations go.

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    Senior Member Ares's Avatar
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    Plus, didnt mitsu just invest in a plant in the Philippines? If it's not too expensive to just ship stuff from there, and other places, then let it go.

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    Phantasmagoria
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    It's official according to this:

    http://www.msn.com/en-us/money/compa...ort/ar-AAdqLOH

    Sounds like just the Outlander!?

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    Senior Member Cobrajet's Avatar
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    Doesn't make sense to keep building cars in a union/tax hell like Illinois if you are only selling 60k of them per year.

    Cheaper to ship them in from Japan or SE Asia.

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    Senior Member jamiec's Avatar
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    Mitsubishi announced overnight that it will cease manufacturing vehicles in the USA by the close of 2015.
    Article here http://www.caradvice.com.au/368612/m...on-in-the-usa/

  9. #7
    Regardless of the business case for doing it (or threatening to do it -- union negotiation tactic), this is going to put a serious dent in prospective buyers' confidence about the company's commitment to the U.S. market.

    It's going to ratchet up the "Mitsubishi USA deathwatch" commenters all over the Internet again.

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    Senior Member jamiec's Avatar
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    Mitsubishi Australia ended car production here in 2008. There was some talk at that time from uninformed people that Mitsu was leaving Australia all together and would not buy a Mitsu car. Well Mitsubishi is still here and doing ok.

    Hope that the USA closure works out at least as good as it did in Australia for Mitsubishi.

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    I don't see them pulling out of the US market - especially since they are doing so well lately. But, getting rid of a UAW plant is a good move. It's sad that US workers have to lose their jobs over it.

    Maybe we will get lucky and they will open a non-UAW plant in a state like Alabama?

  13. #10

    Mitsubishi USA is doomed (TTAC); Mitsubishi is Not Dead Yet (Jalopnik)

    Inevitable:

    The Truth About Cars ...

    Mitsubishi Doomsday Clock – When Do We Start Counting? UPDATE: Right Now.Our Mitsubishi Doomsday Countdown starts right now, putting Mitsubishi’s Best-Before Date at Tuesday, January 16, 2018.

    Source: http://www.thetruthaboutcars.com/201...tart-counting/
    Jalopnik ...

    These guys, on the other hand, think it's too soon to count Mitsubishi out. Sales are up, in no small part because of the Mirage.

    Their total sales peg them at around 8,000 cars a month, which is better than brands like Mini and Fiat. They’re hardly too small or contracting (though it’s true their dealer network appears to be.) If you’re not doubting the existence of Fiat in the United States then think twice about why you’re so worried about Mitsubishi.

    ...

    Would shuttering the Normal plant be the first sign that Mitsubishi is abandoning the United States? Yes. It’s also the first sign that Mitsubishi may be trying to adjust its United States operations more sustainable so they can stay here for a long time.
    I’d bet on the latter.


    Source: http://jalopnik.com/mitsubishi-is-no...yet-1720389883

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