Mitsubishi to Halt Production in the U.S.

Mitsubishi’s Normal, IL plant’s sign

The writing has been on the wall for some time, as Mitsubishi has steadily been a very low-volume automaker in the U.S. for many years. Mitsubishi is now one step closer to closing up shop in the U.S. for good (a la Suzuki), as a new report indicates that it will sell its only U.S. factory in Normal, IL, which builds the Outlander Sport.

This report stems from a news piece from Nikkei in Japan that Mitsubishi declined to comment on. One thing is known, however, is that Mitsubishi’s contract with UAW (Mitsu happens to be the only Japanese automaker with hourly UAW workers) expires in August, making now the perfect time to pull out of the American facility.

According to Mitsubishi representatives, the brand has “no plans to stop selling” in the U.S. and is “concentrating on enhancing” its sales in America. While I appreciate the automaker stating that it plans to keep selling cars in the U.S., it is clear that the brand is turning its focus to Asia and Europe, which will likely make America an expendable market very soon.

According to the UAW, it is business as usual for workers at the plant, and Kyle Young, vice president of UAW Local 2488, says he hasn’t heard anything from Mitsubishi regarding the closure or the new contract. The report claims that Mitsubishi is currently negotiating with UAW to save the jobs of the 918 workers that the plant currently employs, but it doesn’t indicate how this will go down once the plant sells.

My assumption is that the UAW contract would be part of the sale of the plant. This could hamper Mitsubishi’s ability to sell the plant quickly, but it certainly does show a bit of loyalty on the part of the automaker.

I’ll keep an eye on this developing story and bring you updates as they become available.