Mitsubishi to Concentrate on Production of Vehicles in Russia, Japan, and Southeast Asia
Published By : 28 Jul 2015 | Published By : QYRESEARCH
Soon after shutting down the plant in the U.S., Mitsubishi would mainly be focusing on the production processes in Southeast Asia, Russia, and Japan. Tetsuro Aikawa, the president of Mitsubishi Motors has stated that the company will concentrate on some of the key areas of production wherein the countries involved would be Russia and Japan and also the countries that are the members of the trading bloc ASEAN (Association of Southeast Asian Nations).
Some of the key members included are Thailand, Philippines, Malaysia, and Indonesia. While speaking at a conference, Mr. Aikawa confirmed that the company would be taking such as step that would involve the close down of the facility Illinois. Also, he confirmed that much of the demand in the U.S. market will be met with, by the factories that will be established in Thailand and Japan. This has led to a whole new investor confidence wherein they are welcoming such a development.
As a result, the shares have risen by greater than 5%. Such a shift in business operations has come at a time when Mitsubishi is gradually shifting its focus towards the Southeast Asia output which mainly specializes in SUVs and pickup trucks. In Philippines and Thailand, Mitsubishi’s production focus lies in the manufacturing of cars. And by February, it has plans of setting up a new facility in the Indonesia market for manufacturing vehicles like the Pajero Sport SUV. Mitsubishi has also entered into a joint business venture with Peugeot-Citroen/PSA located in Russia.
Aikawa stated that this move which entailed the closure of the factory at Illinois was initiated because of sluggish production and not the fluctuating rates of foreign exchange. This factory also known as the Normal factory was started in 1988 wherein Mitsubishi entered into a joint business venture with Chrysler.