Mitsubishi to cease production in the US

Japan, Russia, Thailand and Indonesia declared Mitsubishi's major manufacturing sites.

Published on Jul 29, 2015 07:00:00 PM

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Mitsubishi Outlander Sport.

Mitsubishi has confirmed its plans to stop production in the United States. After announcing the end of its run at the Illinois factory, company head Tetsuro Aikawa declared Mitsubishi's most important production sites to be Japan, Russia and Southeast Asian Nations (ASEAN), which include Thailand, Indonesia, Philippines and Malaysia.

Focus on Asian and other developing markets is not surprising as sales of Mitsubishi’s pick-ups and SUVs have seen improved growth in these regions; on the other hand, sales in the US have been dwindling. The Japanese carmaker's Outlander Sport was manufactured at the Illinois plant, but will now be shifted to Japan. This will make Japan one of Mitsubishi’s export hubs, other than Thailand where it has three manufacturing set-ups. An added advantage here is that, the yen being weaker against the US Dollar, will allow the carmaker to save on manufacturing cost.

As for the Illinois facility, Mitsubishi is looking for a buyer that will retain the current employees. Aikawa believes that finding a buyer shouldn’t be difficult considering the growing American car market.

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