Mitsubishi Pajero Japan Factory To Be Shut By 2023
The Japanese automaker plans to cut fixed costs by a massive margin, hence the plant closure.
The Mitsubishi Pajero Japan factory will be shut in three years and the automaker is undertaking final arrangements at present.
This will be the first domestic plant owned by Mitsubishi to be closed in about 20 years. The Nagoya plant that was shut way back in 2001 was the last.
The plant in Sakahogi will be closed since sales of the Pajero slumped and to cut back on costs. It also produces the Outlander and Delica D:5 minivan, apart from export-oriented Pajero models, the production of which will be ceased around 2021.
In the year 2019, 63,000 vehicles were manufactured at the plant, about 10 percent of Mitsubishi’s total output in Japan.
Manufacturing of the Delica and Outlander models will likely be relocated to Okazaki Manufacturing, a Mitsubishi Motors subsidiary based out of Okazaki, but is not confirmed yet.
Fortunately, most of the employees, about 900 of them, of the Mitsubishi Pajero Japan Factory are likely to be reassigned as well.
Increasing cost burden in addition to sales loss due to the spread of COVID-19 has driven Mitsubishi to take such a move. The carmaker aims to cut fixed costs by $935 million (Rs. 6994 crores) and closing the Pajero factory is the start of it.
Joining Mitsubishi in such similar efforts are Toyota and Honda. Toyota will be closing the Susono plant at the end of 2020, while Honda will shut its Sayama plant by 2021.
Source – Asia.Nikkei.com