Mitsubishi To End Production In The US

Mitsubishi has been producing vehicles inside the United States for over thirty years. In 2012 Mitsubishi Motors North America (MMNA) celebrated their 30th year in the U.S., but recently, they have announced that they will be ending production in the United States. At the end of November 2015, Mitsubishi and its production will be consolidated in Okazaki plant in Japan. MMNA will be making efforts to try to identify buyers with help from the United Auto Workers (UAW).

Mitsubishi began production in the United States in 1988 as Diamond Star Motors (DSM, later to be renamed MMNA) which was a joint venture with Chrysler Corporation. The Normal, Illinois plant produced over 3.2 million models since 1988. The 2.4 million square foot plant has the capacity to produce up to 120,000 cars and exports vehicles to 50 countries. It’s recent struggle in the United States is one of the reasons it is choosing to close its U.S. operation.

Almost 1,200 workers will be affected by the plant closure. MMNA contributes about $120 million annually to the local economy in taxes, salary, and benefits and is the fifth largest employer in the area. Because of this, locals are looking for potential buyers for the plant to keep it open and avoid layoffs to employees.

Mitsubishi Motors North America has been struggling and seen car sales drop in recent years. Although they have had a decline in sales in the U.S., they have seen sales in Asia rise, which helped fuel the decision to close the U.S. plant and focus on production in Asia. MMNA is committed to working with local and state officials to help find a buyer for the plant. Some think that Tesla could be a good candidate for the plant as well as TaTa or maybe even Jaguar as they have all expressed interest in opening a plant in the United States.