Mitsubishi Production To End

[78_7kRolla]

Production of 380 sedan to end as large car market contracts Mitsubishi sales, dealerships, service, parts and accessories operations unaffected 5th February 2008, Adelaide: Mitsubishi Motors Australia Ltd (MMAL) together with its parent company Mitsubishi Motors Corporation (MMC) has today said that while it is committed to being a long-term participant in the Australian car market, regretfully its Tonsley Park production facility in Adelaide, which manufactures only the large 380 sedan, will cease operations. No other products in the Mitsubishi range will be affected by this decision.

 

Mitsubishi Motors Australia Ltd President & CEO Robert McEniry said: “We are focused on growth in Australia, notwithstanding the decision to cease local manufacture. “Australia is an important market for the Mitsubishi brand, as the fifth largest country for Mitsubishi vehicle sales in the world. Over the past 12 months we have achieved impressive sales growth of 20.7 percent driven by our imported passenger, light commercial and SUV vehicles, taking sales to 66,000 units and placing Mitsubishi in the top five selling brands in Australia with 6.2 percent market share.

 

“However, it is an inescapable fact that there is now a deepening trend away from large cars.

 

“The Adelaide plant has been the subject of numerous studies over recent years into its utilisation and options for alternative model production.

 

“Over the last few months, we have been working closely with MMC to determine the best business model to secure Mitsubishi’s long term aspirations for the Australian market. After a searching analysis of the current business structure and extensive review of the available options for the Adelaide plant, a decision has been made to cease production and focus on a full import approach.

 

“We can see no path for a return to viable production levels of the 380 sedan, or a commercial case for developing any replacement production.

 

“This has been a very difficult decision. We have a deep appreciation of the commitment and loyalty of our workforce, suppliers and other business partners who have given the plant a proven track record of flexibility, cost efficiency and excellent quality control,” Mr McEniry said.

 

The closure will directly affect 930 employees who will receive very favourable separation packages based on those provided to the Lonsdale Engine Plant employees in 2005. Mitsubishi Motors Australia has ensured that all employee entitlements are protected and guaranteed when the plant ceases production at the end of March 2008.

 

MMAL will also be working closely with Government agencies in the provision of comprehensive counselling, job seeking, retraining, and other support services.

 

Mr McEniry said: “Over the last ten years, MMC has gone beyond the call of duty in supporting manufacturing in Australia through major capital investment, in addition to covering significant operating losses. Having persevered for so long, it is simply not rational to contemplate continuing such losses. To invest in further models for local production can not be justified.

 

“Given the magnitude of the challenge, government assistance is not the answer to maintaining manufacturing at Tonsley Park, and this has not been sought by the company.” Mr McEniry said.

 

The company acknowledges and appreciates the support it has received from the Federal Government in the form of partial relief from import tariffs under the Automotive Competitiveness and Investment Scheme (ACIS) which is drawn upon by all local manufacturers. In addition, there has been a $35 million grant received from the South Australian government in 2002 in relation to development of the 380 model which will be repaid by the company following the closure.

 

Mitsubishi Motors Australia plans to expand its extensive dealer network of over 200 sites across Australia, providing full parts, warranty and service support for all Mitsubishi products including 380.

 

Mitsubishi Motors Australia also announced that all past and future private buyers of new 380’s will also be provided with an extension of their already industry leading warranty terms, to six years.

 

“This clearly demonstrates our ongoing support for this multi-award winning car,” Mr McEniry said.

 

“Mitsubishi is now focused on further growth in the Australian market. We have a comprehensive model range - Lancer, Colt, Grandis, Pajero, Outlander, Triton and Express Van, which today comprise nearly 90% of our annual sales - with more new products to come, confirming our long-term presence and growth aspirations in the Australian car market,” he said.

 

Not good for the 930 workers. The government does nothing to assist local manufacturing hence the coming closure of the Geelong Ford plant. These low import taxes/charges has really made it hard for the locals.

 

Discuss.

[7shades]

The unfortunate reality of a globalised economy. Profit knows no borders and cares not for loyalty....

[Jono]

make gsr and evo lancers here, drop the price and they would be laughing.

[Raven]

Makes it harder for the rest of us who are currently unemployed to get a job now too as there are going to be a lot of unemployed workers out there come the end of next month.

 

Its sad to see it happen, but what else is a car manufacturer to do when their cars arent selling as well as they thought?

 

The 380 was definitely a flop. The VE Commodore nearly took the same path as well.

 

Gonna be an interesting next couple of years with only Holden, Ford and Toyota producing cars, thats for sure.

[Jason]

there fault for making the 380... its just karma ;)

[philba]

The company acknowledges and appreciates the support it has received from the Federal Government in the form of partial relief from import tariffs under the Automotive Competitiveness and Investment Scheme (ACIS) which is drawn upon by all local manufacturers. In addition, there has been a $35 million grant received from the South Australian government in 2002 in relation to development of the 380 model which will be repaid by the company following the closure.

 

Not good for the 930 workers. The government does nothing to assist local manufacturing hence the coming closure of the Geelong Ford plant. These low import taxes/charges has really made it hard for the locals.

 

Discuss.

 

So $35 million is doing nothing to assist?

[Jason]

35mill isnt that much.

[Des]

380 = pure shite.

 

Old school mitsi's for the win.

 

Feel sorry for the workers though but there are other jobs out there.

[LittleRedSpirit]

Obviously they wanted some of Toyotas market share, or it would have been rear wheel drive and aimed more squarely at Holden and Ford.

 

I say well done to Toyota for crushing the inferior product.

 

Its probably not that bad a car, but there was nothing new or different about it except the Aussie connection. Australians must care too much about the enjoyment of driving to drive a slab sided, front wheel drive, patriotic econobox.

 

Sad for the workers, but seriously, they couldnt give them away. Even a 10 year warranty couldn't sell these things. Wrong car for our market.

 

If they made it an affordable rear wheel drive mid-size platform, they might have had a different result. Thanks for nothing Mitsubishi. Stick to Tritons and Pajeros from now on, ok.

[7shades]

I wouldn't be PAID to own a Mitsubishi. Job loss is unfortunate, but hey, we are facing a labour crisis at the moment to the tune of about 50000 workers per year and the unemployment rate is still at record lows, even adjusted for Mr. Howard's legacy of statistical spin doctoring. Shouldn't be too difficult to walk out of that factory and into something even better.

 

A blessing in disguise for the Australian motor industry. What have we learned? Make a substandard product, feel the mighty wrath of economic rationalism!

[lijeza]

I work for a company that has extremely close ties with Mitsubishi (MMAL) and it is a shit outcome for the workers and everyone in general.

 

But before anyone bitches about the 380 being a shit car and that's the reason why it closed down, just a quick question, have you ever driven one????? don't go by the mentality that "it's a Mitsubishi and i'd never drive one of those, (unless it's an EVO)". if you love cars in general, don't be a sheep and just repeat what other people say, use your own brain and test it for yourself.

 

I was given one to drive for a week, absolutely thrashed it and it was fantastic. I'm not just saying this because of where I work, my past cars were a 74 Lancer, 80 Celica, 2000 WRX and now a 76 Corolla, have been around and driven Holden and Fords as well. You get good and bad in all makes, and we all have our favourites.

[Raven]

I also own a 1994 TS Magna V6 Manual and its great to drive for a daily and very reliable.

 

Didnt miss a beat going to Portland and back ;)

[LittleRedSpirit]

I work for a company that has extremely close ties with Mitsubishi (MMAL) and it is a shit outcome for the workers and everyone in general.

 

But before anyone bitches about the 380 being a shit car and that's the reason why it closed down, just a quick question, have you ever driven one????? don't go by the mentality that "it's a Mitsubishi and i'd never drive one of those, (unless it's an EVO)". if you love cars in general, don't be a sheep and just repeat what other people say, use your own brain and test it for yourself.

 

I was given one to drive for a week, absolutely thrashed it and it was fantastic. I'm not just saying this because of where I work, my past cars were a 74 Lancer, 80 Celica, 2000 WRX and now a 76 Corolla, have been around and driven Holden and Fords as well. You get good and bad in all makes, and we all have our favourites.

 

I didn't critiscise how they work, just the category the car was aimed at, and its lack of style. It was a bad move. You can take it however you want but at the end of the day, the problem is the car. Not the workers or the factory.

 

I have a 2006 Triton V6. Its Rear Wheel Drive. I know what I want from a car and the 380 isnt it.

[7shades]

Likewise. Refer to my rants in other threads about the lacklustre local product. Sure, they all do the job just fine, but so does a Lada Niva. I found the 380 to be adequate, but unremarkable. I like to DRIVE. I want more than adequate if I'm going to shell out the big bucks for a new car.

 

Good riddance 380. May you rest in anonymity.

[KE30_KE35_KE55]

Its very unfortunate, I toured the plant a several times, I personally think they may have done better with a Rear Wheel Drive family car