Tokyo, Sept. 6, 2001 - Mitsubishi Motors Corp. (MMC) announced today
that it will phase out the production of components at its Oye Plant and
outsource them by the end of FY2002.
Mr. Sonobe, President & CEO, said "This step, an important part
of MMC's Turnaround Plan, will enable the company to focus more on its
core business and reduce production costs."
The Oye Plant closing initiates the first steps in the outsourcing plan.
In November, a significant portion of Oye's existing component production
will be transferred as follows:
- Differential and front-wheel drive transfer components for products
such as Galant and Lancer will be shifted to Tochigi Fuji Sangyo K.K.
Tochigi Fuji will continue production within a designated area of MMC
Oye Plant.
Approximately 270 MMC employees will be transferred along with the above
mentioned component production.
- Rear-wheel drive transfer components for products such as Pajero
and Challenger will be shifted to two manufacturers: AISIN AI CO., LTD,
a subsidiary of AISIN SEIKI CO., LTD, and ARAKAWA INDUSTRY CO., LTD
both located in Aichi prefecture.
This production shift will include approximately 120 MMC employees to
be transferred to the new locations.
The ultimate goal of the company is to outsource most component production
from the Oye Plant by the end of FY2002.
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