Mitsubishi Motors North America Inc., a subsidiary of Mitsubishi Motors Corporation in the U.S., has just announced, in a press release, that it will be ending the production of the Outlander Sport, its sole production model at the Normal plant, by the end of November 2015.
The production of the vehicle will be consolidated in Okazaki plant in Japan, pending a final decision by the Mitsubishi Board of Directors on July 30.
The next model year of the Outlander Sport will then be exported from the Okazaki plant to the U.S.
The decision to end production at the plant in Normal, Illinois is due to several factors, according to the press release.
The relatively low increase in production volume, following the U.S. economic crisis, played a role in Mitsubishi's decision.
Furthermore, the 2014 economic crisis in Russia made matters worse, as the country, which accounts for more than 30 percent of the production volume, "significantly" dropped its production order.
Reuters adds that Tetsuro Aikawa, President and Chief Operating Officer of Mitsubishi, said that aside from Japan, Mitsubishi is also eyeing to increase production in Southeast Asia and Russia.
"Japan, ASEAN (countries), and Russia will be the main points of production for our company," he said.
In a separate press release, Mitsubishi is working closely with the United Auto Workers in looking for a suitable buyer to assume operations in the facility.
Mitsubishi and United Auto Workers aim to preserve the jobs that the Normal plant operation provides.
"In the coming days, weeks and months, our focus will be on helping the hard-working men and women at Mitsubishi Motor's plant transition to new job opportunities under new ownership," said Ron McInroy, director of UAW Region 4, in the press release.
Hiroshi Harunari, executive vice president in charge of overseas operations for Mitsubishi Motors Corporation, added that they value all the work of their employee and the "motivation" to end production in the facility is "unrelated to labor cost" or their "relationship with the UAW."
"Our partnership over the years has been both respectful and mutually beneficial. Our primary focus right now is to work together to identify a strategic buyer for the plant in order to transit into the next phase," he said.
