Another Automaker Flees California

It used to be that foreign automakers almost huddled in California for their U.S. headquarters, but that’s changing. The latest to leave the Golden State is Mitsubishi, which is in a state of complete reform. The Japanese automaker revealed its plans to move in a press release, as well as more gutting and restructuring plans.

Mitsubishi Motors North America will relocate to Franklin, Tenn. It has called California home since 1988, so this ends an era. That puts the company right by Nissan’s North America headquarters. The plan is to start the move in August and complete it by the end of the year.

In the press release, Mitsubishi cited several reasons for moving to Tennessee. One is the “vibrant technology skill set” the local workforce provides. Surely the automaker had access to similar skills in California. Another reason is the “cost savings through the business-friendly work environment” in Tennessee.

Believe it or not, Mitsubishi is riding a wave of recent success. It’s the fastest-growing Asian car brand in the United States for two years in a row. Sadly, that’s in part because sales fell through the basement previously, but it’s good to see Mitsubishi looking for the positive.

Big changes are coming for Mitsubishi Motors North America. About 80 percent of management is new hires or new internal promotions and the brand is looking to transform and expand its dealer network, and pretty much everything else about it.