Mitsubishi Motors Corporation (MMC) today announced the transfer of certain vehicle production of the Mizushima plant to the Okazaki plant and the continuation of vehicle production at the Okazaki plant as a supplement to the Mizushima plant. This action will prevent missed sales opportunities and allow the company to focus on achieving fiscal 2006 sales targets.
Mitsubishi Motors expects planned production volume at the Mizushima plant to exceed production capacity in fiscal 2006, due to strong sales growth in Japan and for export models. The company sees this situation continuing because sales are expected to increase further and exports from Mizushima are representing an ever increasing share of the company’s global unit sale volume. To overcome this situation, the company has decided to switch production of certain models from Mizushima to the Okazaki plant after studying the most cost effective way to avoid missing sales opportunities, reduce lead times, and ensure quality from suppliers.
Outline of the production transfer:
Model: Outlander (for export)
- May 2006 Start preparation
- January 2007 Start vehicle production
Workforce needed: Several hundred
Mitsubishi Motors has been making efforts to rationalize its global production network from a global point of view. Overseas, to match sales in each region and globally, starting with exports for the U.S Galant to Russia, the Middle East, and South America, the company will work toward improving utilization through new export businesses in all regions.
For the longer term, as the company pushes forward its policy of reducing the number of platforms and introducing new models, concentrated production will be promoted.