President Tetsuro Aikawa of Mitsubishi Motors

Withdrawal of production to expand capacity in ASEAN countries by choice & concentration, says Mitsubishi President

President Tetsuro Aikawa of Mitsubishi Motors Corporation had a press conference on July 27, related to withdrawal of production at their USA factory at the head office in Minato-ku, Tokyo. Among these, they decided on “choice and concentration,” and he declared their plans for the future production system, saying, “We will focus in Japan, ASEAN, and Russia.”

Currently, Mitsubishi is making efforts to expand the capacity of their Philippine factory and to establish a new Indonesian factory (annual capacity of 160,000 units), that is slated to begin operations on April 2017. Among the three production areas, Aikawa explained that it will have a huge effect on the withdrawal of production in the United States; he said, “We will focus on expanding the capacity in ASEAN countries.”

Regarding the business development in ASEAN regions, he proudly said, “We have built a sales network in each country since before, for about 40 to 50 years. Even in competing with other companies, we saw that it is possible to expand our sales.”

They established a joint venture with the Chrysler Group and started production in 1988 at the USA factory, which they decided to withdraw production from on November of this year. Mitsubishi acquired the holdings of Chrysler in their joint venture and turned it into a subsidiary in 1991. Although it produced 220,000 units in 2000 at its peak, it fell to about 70,000 units in 2014. Aikawa said, “It is clear that it does not meet the standards of economic rationality.”

(Translated by Natassia Jeronne D. Martinez)