Mitsubishi Australia's Plant Closure..more a reality.
10-24-2006, 05:27 PM
#1
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Mitsubishi Australia's Plant Closure by end March 08.
Last night ABC (Australian Broadcasting Commission) broke a story about the pending closure of Mitsubishi Motors only plant here in Australia..and my home state...
A copy of the CEO's plant closure management procedure was leaked to the ABC.
They make the 380 (Galant) and sales have tanked since its release...
I think they are only making about 80 a day!,
where the plants capacity is at least 300 a day.
Mitsubishi Australia has invested massive $$'s to make this model with new plant presses and equipment.
Rumours about their viability have been around for years and has not help the brand sales.
MA will probably remain as a fully imported vehicle line-up like Mazda and Nissan.
More news will break today on this matter...'now the cat is out of the bag'
A copy of the CEO's plant closure management procedure was leaked to the ABC.
They make the 380 (Galant) and sales have tanked since its release...
I think they are only making about 80 a day!,
where the plants capacity is at least 300 a day.
Mitsubishi Australia has invested massive $$'s to make this model with new plant presses and equipment.
Rumours about their viability have been around for years and has not help the brand sales.
MA will probably remain as a fully imported vehicle line-up like Mazda and Nissan.
More news will break today on this matter...'now the cat is out of the bag'
Last edited by ASH8; 02-05-2008 at 04:11 PM.
10-24-2006, 05:41 PM
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hope this doesn't turn into a "mitsubishi bashing" thread but unfortunately it's been only a matter of time before Mitus's low sales started forcing them to take these kinds of measures.
10-24-2006, 05:58 PM
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Yeah, it would be sad for the workers and owners, originally it was Chrysler Australia's plant then Mit's bought it over 25 years ago and upgraded it to the very latest facility.
The bloody media here have been talking them down and making the "closure" issue headline news for 10 years..the 380 is a good car..
Their engine plant went a few years back.....now the engines are imported from Japan.
The bloody media here have been talking them down and making the "closure" issue headline news for 10 years..the 380 is a good car..
Their engine plant went a few years back.....now the engines are imported from Japan.
10-24-2006, 05:58 PM
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They have been in trouble for years, I almost expect Mitsubishi to be gone from the US very soon. We used to sell Mits. here and car sales averaged about 4 a month before we sold the franchise. Several other dealers have closed as well.
10-24-2006, 06:30 PM
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up here in western mass, we have had 2 mitsu dealers shut thier doors and there isn't a near mitsu dealer in the area. The first one sold 4 cars in a couple of months and the other was part of a chain that got bought out and the new buyers didn't pick up Mitsu. I don't see them around much longer. I feel sorry for the owners that have to drive 70 miles to get to the nearest mitsu dealer.
10-24-2006, 06:43 PM
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If Mitsubishi does end up going under, it'll be a eerie feeling as I dont' recall the las time we lost an major automaker here in the US. (and yes, I still consider Mitsu as one of the "big" automakers)
Does this mean the Evo guys will stop picking on us? (guess that's a topic for another day)
Ash: Any more updates on that plant?
Does this mean the Evo guys will stop picking on us? (guess that's a topic for another day)
Ash: Any more updates on that plant?
10-25-2006, 06:33 PM
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Yeah..
The CEO yesterday said that it was Media Speculation...again, the leaked report named Phoenix does exist and the CEO said it was a draft, he informed the Federal Government here that they have no intention to close the plant...(then why commission the draft report in the first place).
IMO they aren't going to say anything else....
All this speculation is not good for sales, however, Avis rent a car have just ordered 2500 380's, but thats a month's production....
Unfortunately...IMO it's just a matter of time.....the work force has gone from 6000 odd to 1600! in about 4 years..
The CEO yesterday said that it was Media Speculation...again, the leaked report named Phoenix does exist and the CEO said it was a draft, he informed the Federal Government here that they have no intention to close the plant...(then why commission the draft report in the first place).
IMO they aren't going to say anything else....
All this speculation is not good for sales, however, Avis rent a car have just ordered 2500 380's, but thats a month's production....
Unfortunately...IMO it's just a matter of time.....the work force has gone from 6000 odd to 1600! in about 4 years..
10-25-2006, 07:07 PM
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Originally Posted by Jedi54
If Mitsubishi does end up going under, it'll be a eerie feeling as I dont' recall the las time we lost an major automaker here in the US. (and yes, I still consider Mitsu as one of the "big" automakers)
Does this mean the Evo guys will stop picking on us? (guess that's a topic for another day)
Ash: Any more updates on that plant?
Does this mean the Evo guys will stop picking on us? (guess that's a topic for another day)
Ash: Any more updates on that plant?
Rx8 Owner: Yeah well atleast I dont have to cross state lines to get my car worked on.
Evo Owner: ........... ::goes home and cries::
Well never really knew Mitsubishi was in such trouble till this thread. I live in Norwood, MA home of our luvly lil Auto Mile and the dealership we have here seems to be decently busy but then again its usualy Lancer/Evo's and a Eclipse every so often being taken out on the highway for a test drive. I hardly see any Galants on the road the news ones alteast, but I see ton's of the older styles still being driven. Shame if they are hurting that badly, I like the Eclipse styling but its not my personal style, and the Lancer to me is just to boxy the Evo is fine but again its a box. Now that I think of it both the Galant and Lancers are pretty much boxes. 'eh anyways.. I hope they turn around they do make good cars just need to get away from the Box style I guess (leave the eclipse alone meh like it).
10-25-2006, 07:43 PM
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the new eclipes's have been on sale for over a year now and I've seen exactly 2 of them on the road.
This was suppose to be the savior for the company. mitsu is not the company they used to be. The evo's ok, but most people are not going to spend 35K on a supped up econobox. The galant has gotten lots of negative reviews and ratings. The lancer is ok for what it does, but they got nothing else. a handfull of average or less then average cars with one decent car (evo), which is not for everyone. I don't think they are going to make it...
This was suppose to be the savior for the company. mitsu is not the company they used to be. The evo's ok, but most people are not going to spend 35K on a supped up econobox. The galant has gotten lots of negative reviews and ratings. The lancer is ok for what it does, but they got nothing else. a handfull of average or less then average cars with one decent car (evo), which is not for everyone. I don't think they are going to make it...
10-25-2006, 07:46 PM
#10
September:
Mitsubishi worldwide ouput - 15.4%. Overseas output - 26.5%. Domestic production - 5.4%.
Big write up in the paper today on all the car companies. I see Mazda making huge gains going after the Chinese market. Mitsubishi may soon follow their lead.
Mitsubishi worldwide ouput - 15.4%. Overseas output - 26.5%. Domestic production - 5.4%.
Big write up in the paper today on all the car companies. I see Mazda making huge gains going after the Chinese market. Mitsubishi may soon follow their lead.
10-26-2006, 12:23 AM
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When I worked at the plant here (late90s) we were doing about 280 Magna's (model before the 380) a day...to see it go to 80 units ain't good.
The media here consistently refer to their sales performance probably twice a year, the 380 launch last year was supposed to be Mitsubishi-Motors Australia saviour.
Mitsubishi worldwide has been on a slide for years, along with law-suit's concerning safety issues with their trucks...people in Japan don't have confidence in the brand like they used to.
Their model range is old style and needs an overhaul, the Evo is fast, but looks really "rice" like STI's...there ain't a lot of WOW factor in their looks, I always think that owners of "rice' looking cars are compensating for small genitalia!
The media here consistently refer to their sales performance probably twice a year, the 380 launch last year was supposed to be Mitsubishi-Motors Australia saviour.
Mitsubishi worldwide has been on a slide for years, along with law-suit's concerning safety issues with their trucks...people in Japan don't have confidence in the brand like they used to.
Their model range is old style and needs an overhaul, the Evo is fast, but looks really "rice" like STI's...there ain't a lot of WOW factor in their looks, I always think that owners of "rice' looking cars are compensating for small genitalia!
10-26-2006, 12:58 AM
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i think youre compensating for you small genitalia by bashing others. thats a sign of insecurity.
and worse come worse, mitsu would get bought out by some bigger company like mazda did. they arnt going anywhere.
and worse come worse, mitsu would get bought out by some bigger company like mazda did. they arnt going anywhere.
10-26-2006, 01:19 AM
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Originally Posted by playdoh43
i think youre compensating for you small genitalia by bashing others. thats a sign of insecurity.
and worse come worse, mitsu would get bought out by some bigger company like mazda did. they arnt going anywhere.
and worse come worse, mitsu would get bought out by some bigger company like mazda did. they arnt going anywhere.
10-26-2006, 01:33 AM
#15
Originally Posted by playdoh43
i think youre compensating for you small genitalia by bashing others. thats a sign of insecurity.
and worse come worse, mitsu would get bought out by some bigger company like mazda did. they arnt going anywhere.
and worse come worse, mitsu would get bought out by some bigger company like mazda did. they arnt going anywhere.
10-26-2006, 01:44 AM
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Originally Posted by tjbourgoyne
Correct me if i'm wrong but Ford only owns 33% of Mazda. I thought buying out a company entailed owning a majority of it. I think your right though, If Toyota was ever going to make a move they should do it now. They have had monthy advances now for 2 years straight and Ford is in no position to fight back.
10-26-2006, 01:48 AM
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It is not only the US makers that can find themselves in deep trouble.
Except the EVO, there is nothing compelling about any Mitsubishi. The Eclipse pretty much sells on appearance. The journalists pretty much thrashed the car. It is built on the Galant platform to save money and it seems it pretty much drives like it too.
Maybe they should bring back those annoying commericals with the youngsters doing those stupid moves in the car to the electronica.
Except the EVO, there is nothing compelling about any Mitsubishi. The Eclipse pretty much sells on appearance. The journalists pretty much thrashed the car. It is built on the Galant platform to save money and it seems it pretty much drives like it too.
Maybe they should bring back those annoying commericals with the youngsters doing those stupid moves in the car to the electronica.
10-26-2006, 02:05 AM
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Originally Posted by CarAndDriver
It is not only the US makers that can find themselves in deep trouble.
Except the EVO, there is nothing compelling about any Mitsubishi. The Eclipse pretty much sells on appearance. The journalists pretty much thrashed the car. It is built on the Galant platform to save money and it seems it pretty much drives like it too.
Maybe they should bring back those annoying commericals with the youngsters doing those stupid moves in the car to the electronica.
Except the EVO, there is nothing compelling about any Mitsubishi. The Eclipse pretty much sells on appearance. The journalists pretty much thrashed the car. It is built on the Galant platform to save money and it seems it pretty much drives like it too.
Maybe they should bring back those annoying commericals with the youngsters doing those stupid moves in the car to the electronica.
http://www.youtube.com/watch?v=X6jBQoS6m7k
10-26-2006, 02:33 AM
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Originally Posted by tjbourgoyne
Correct me if i'm wrong but Ford only owns 33% of Mazda. I thought buying out a company entailed owning a majority of it. I think your right though, If Toyota was ever going to make a move they should do it now. They have had monthy advances now for 2 years straight and Ford is in no position to fight back.
33.4% makes Ford Mazda's largest shareholder. Under Japanese corporate law once one owns more than 1/3 of the outstanding shares you automatically had a board seat, veto rights and the right to pick the executives. I'd say that amounts to the same thing as owning the whole company... without the drawback of the liabilities (which you get under Japanese corporate law).
You can find more detailed information by running a search, as I have posted detailed info and links several times before.
As far as Toyota making a move... I doubt it. Goes against the Japanese old school business politics. More likely is either more financial help from the UFJ - Tokyo Mitsubishi Banking Group (the banking part of the Mitsubishi Group conglomerate) or outside equity investment... probably from a foreign firm.
10-26-2006, 02:35 AM
#20
Ike, my question was about defining what a buyout is and if Ford technically bought Mazda out. I understand they make the decisions, but a buyout takes the form of a leveraged buyout or a management buyout. I'm a history major but it seems neither one of those fits the bill. With Madza controling the decisions and assuming the least amount of risk, is that technically a buyout?
10-26-2006, 02:46 AM
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It doesn't matter because Japan isn't the US... meaning that the laws are different. What matters is how the situation is viewed under Japanese law. And this kind of situation exists in many different industries. There are plenty of odd ones like Nippon Broadcasting having control of Fuji TV, even though Fuji TV is worth much more.... thus getting control of Nippon Brocasting gives one control over Fuji TV... this was the situation involving Horie and Livedoor...
10-26-2006, 03:04 PM
#22
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Ford purchased 25% of Mazda back in the mid 70s....as we know
I recently recall the Sumitomo Bank (a Mazda Shareholder) was aggressively buying stock from smaller Mazda Motor Corp investors.
I think Mitsubishi-Motors Corp will find it difficult to find any major investor, as Daimler Chrysler lost 1.5 billion dollars..and got burnt.
I recently recall the Sumitomo Bank (a Mazda Shareholder) was aggressively buying stock from smaller Mazda Motor Corp investors.
I think Mitsubishi-Motors Corp will find it difficult to find any major investor, as Daimler Chrysler lost 1.5 billion dollars..and got burnt.
10-27-2006, 02:55 AM
#23
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Here is a link to the AIMS...where the Mitsubishi-Motors Australia CEO responds to the ABC's 7.30 Report a few nights ago...
It is also the website for the Motor Show in Sydney..
http://carsguide.news.com.au/aims2/s...008420,00.html
It is also the website for the Motor Show in Sydney..
http://carsguide.news.com.au/aims2/s...008420,00.html
02-05-2008, 01:10 AM
#24
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Well it is now official....
Today a Mitsubishi- Board meeting confirmed that their only Australian plant here in Adelaide (Tonsley) will close at the end of March 2008.
As this thread was started in 2006, the writing was well and truly on the wall.
Mitsubishi was only producing 40, 380(Galant) models per day!
The workers union is hoping for another auto brand to use the facility, particularly after a $700m upgrade a few years ago... Mazda's made in Australia?
So this now leaves my home state with only one car plant...GM Holden (Pontiac G8)
The workforce was streamlined in recent years to only 1000, from 5000.
The flow on effect to component suppliers will add another 3000 lost jobs.
For a small city (1.5 mil pop) this is a very large business loss.
Chrysler originally built the plant in 1964 until they moved out of Australia in 1979 when Mitsubishi purchased the site.
Also today the workers have been given the rest of the week off, reporting for work next Monday.
Today a Mitsubishi- Board meeting confirmed that their only Australian plant here in Adelaide (Tonsley) will close at the end of March 2008.
As this thread was started in 2006, the writing was well and truly on the wall.
Mitsubishi was only producing 40, 380(Galant) models per day!
The workers union is hoping for another auto brand to use the facility, particularly after a $700m upgrade a few years ago... Mazda's made in Australia?
So this now leaves my home state with only one car plant...GM Holden (Pontiac G8)
The workforce was streamlined in recent years to only 1000, from 5000.
The flow on effect to component suppliers will add another 3000 lost jobs.
For a small city (1.5 mil pop) this is a very large business loss.
Chrysler originally built the plant in 1964 until they moved out of Australia in 1979 when Mitsubishi purchased the site.
Also today the workers have been given the rest of the week off, reporting for work next Monday.
Last edited by ASH8; 02-05-2008 at 01:14 AM.
02-05-2008, 01:32 AM
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Just got this email from MMA CEO...
Dear Member,
Mitsubishi Motors - 47 years in Australia with many more to come.
Mitsubishi Motors is a well recognised and trusted brand in the Australian market. The outstanding performance of our broad-based imported vehicle line-up, which achieved 32 percent sales growth over the past twelve months, clearly indicates the strength of the brand. Our growing range of passenger and commercial vehicles makes heads turn ? not simply because of their style but also their safety, reliability and value.
Australia is a very important market for Mitsubishi Motors and we are committed to building on our many successes and increasing our market share. Becoming a long-term sponsor of the Australian Olympic Team is a strong symbol of that commitment as is our plan to strengthen our nationwide network of over 200 dealers selling and servicing Mitsubishi cars.
None of these commitments are affected by the decision announced this week that our Adelaide production facility, which manufactures only the large 380 sedan, will cease operations. That decision has been made because Australian consumers are moving towards smaller, more economic, and environmentally friendlier cars like those in the rest of the Mitsubishi range.
We would like to publicly express deep appreciation to our highly committed and loyal workforce and supplier family, who have given the 380 plant a proven track record of flexibility, cost efficiency and excellent quality control.
Closure of the 380 plant will directly affect 930 employees. The company has ensured that our employees will receive all entitlements along with very favourable separation packages in recognition of their contribution to the company. Mitsubishi Motors Australia will also be working closely with government agencies in the provision of comprehensive retraining, job seeking and other support services.
Looking ahead we have a comprehensive model range - Lancer, Colt, Grandis, Pajero, Outlander, Triton and Express Van with more new products to come, confirming our long-term presence and growth aspirations in the Australian car market.
Additionally, Mitsubishi customers will continue to enjoy the industry leading reassurance of the Diamond Advantage programme, which incorporates our 5/10 Warranty, five year Roadside Assist, 24/7 Customer Assistance Centre, genuine service and parts, and financing options, delivered through our extensive dealer network.
At Mitsubishi, we greatly value our customers and are proud of every vehicle that carries the Mitsubishi badge. These have been hallmarks of our 47 years in the Australian market, as they will be for our long and successful future here.
Yours faithfully,
Robert McEniry
President & CEO
Mitsubishi Motors Australia Ltd
Dear Member,
Mitsubishi Motors - 47 years in Australia with many more to come.
Mitsubishi Motors is a well recognised and trusted brand in the Australian market. The outstanding performance of our broad-based imported vehicle line-up, which achieved 32 percent sales growth over the past twelve months, clearly indicates the strength of the brand. Our growing range of passenger and commercial vehicles makes heads turn ? not simply because of their style but also their safety, reliability and value.
Australia is a very important market for Mitsubishi Motors and we are committed to building on our many successes and increasing our market share. Becoming a long-term sponsor of the Australian Olympic Team is a strong symbol of that commitment as is our plan to strengthen our nationwide network of over 200 dealers selling and servicing Mitsubishi cars.
None of these commitments are affected by the decision announced this week that our Adelaide production facility, which manufactures only the large 380 sedan, will cease operations. That decision has been made because Australian consumers are moving towards smaller, more economic, and environmentally friendlier cars like those in the rest of the Mitsubishi range.
We would like to publicly express deep appreciation to our highly committed and loyal workforce and supplier family, who have given the 380 plant a proven track record of flexibility, cost efficiency and excellent quality control.
Closure of the 380 plant will directly affect 930 employees. The company has ensured that our employees will receive all entitlements along with very favourable separation packages in recognition of their contribution to the company. Mitsubishi Motors Australia will also be working closely with government agencies in the provision of comprehensive retraining, job seeking and other support services.
Looking ahead we have a comprehensive model range - Lancer, Colt, Grandis, Pajero, Outlander, Triton and Express Van with more new products to come, confirming our long-term presence and growth aspirations in the Australian car market.
Additionally, Mitsubishi customers will continue to enjoy the industry leading reassurance of the Diamond Advantage programme, which incorporates our 5/10 Warranty, five year Roadside Assist, 24/7 Customer Assistance Centre, genuine service and parts, and financing options, delivered through our extensive dealer network.
At Mitsubishi, we greatly value our customers and are proud of every vehicle that carries the Mitsubishi badge. These have been hallmarks of our 47 years in the Australian market, as they will be for our long and successful future here.
Yours faithfully,
Robert McEniry
President & CEO
Mitsubishi Motors Australia Ltd
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