Mitsubishi Motors Corporation has been studying the outsourcing of components currently produced at its Oye Plant as part of its strategy of concentrating resources on its core business,an integral part of the comprehensive MMC Turnaround.
As a result, the company has decided to transfer propeller shaft and front axle production away from the Oye Plant. This comes after the transfer of differential and drive transfer production announced in September last year and accounts for around 20% of total component production at the Oye Plant. This latest move means some 95% of component production has already or will soon have been transferred from the Oye Plant.
Outsourcing production of these and other components, which offer volume-production benefits, enables the company to reduce production costs as well as further strengthen the cor-porate base by selling off surplus plant and reducing payroll. The outsourcing will also enable the company to make other use of the vacated land from 2003 onward.
Outsourced components
1. Front axles (for Challenger, Chariot Grandis, Pajero iO models)
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| Outsourced to: |
Advics Co., Ltd.
(President, Haruhiko Saito; Head office, Kariya, Aichi Pref.) |
| Transfer date: |
Early May, 2002 |
| Transferred to: |
| * |
Knuckle machining, knuckle and hub assembly to main factory of Aishin Takaoka Co., Ltd. |
| * |
Hub machining and assembly to Kira factory of Aishin Ta-kaoka Co., Ltd.: |
|
| Personnel transferred: |
20 |
2. Propellor shafts (for Pajero, Challenger, Chariot Grandis models)
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| Outsourced to: |
Showa Corporation (President, Masahide Matsushima; Head office, Gyoda, Saitama Pref.; listed First Section Tokyo Stock Exchange) |
| Transfer date: |
Mid-August, 2002 |
| Transferred to: |
* Nagoya Plant of Showa Corporation (Kasugai, Aichi Pref.) |
| Personnel transferred: |
30 |
|
