Mitsubishi expands production at US plant

February 05, 2011 | 12:18

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Japanese automaker Mitsubishi announced plans Friday to expand production at its US plant as it looks to bolster sales in the region.

Mitsubishi said it will begin producing 50,000 Outlander Sport crossovers in mid-2012 at its Normal, Illinois plant.

The company first began producing vehicles there in 1988 through a joint venture with Chrysler. Chrysler stopped producing vehicles there several years ago and the fate of the plant has long been in question.

The plant produced less than 50,000 vehicles last year, a fourth of its capacity.

Mitsubishi said its $45 million investment reinforces its commitment to the US market. Its sales rose four percent last year to 55,000 vehicles.

"With the new model, the plant will have better utilization, and of course we will see improved efficiency when we eventually consolidate to one model with higher production volume," said Mitsubishi Motors North America president Shinichi Kurihara.

"I fully expect this plant will strongly improve its performance further down the road."

Kurihara estimated that about half of the Outlanders produced will be exported, primarily to the Americas and the Middle East.

Mitsubishi is the only Asian or European auto manufacturer currently partnering with the United Auto Workers union. About 1,000 of its 1,300 employees are union members.

AFP

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