Mitsubishi U.S. workers uneasy over instability, production cuts

By Liza Berger

NORMAL, Ill., May 18 (SNS) – Negative company news and media speculation surrounding Mitsubishi Motors Corp. (MSBHY), an ailing Japan-based car and truck-maker, along with less than favorable market conditions, have caused uneasiness among the 2,800 hourly workers at the company’s manufacturing facility here, a company source told Stark’s News Service Interactive today.

"It’s (the mood in the facility) is very just down and it’s because of the uncertainty," the source said.

The plant here – the only Mitsubishi plant in the United States – produces Endeavor sport utility-type vehicles, as well as cars, including Eclipses, Eclipse Spiders and Galants. All of the vehicles are made on one assembly line.

As reported yesterday, Mitsubishi may receive ¥450.00 billion ($3.93 billion) as part of a bailout package from its Mitsubishi Group parent.

As part of the deal, Mitsubishi Motors would close a production facility in Pajero, Japan, where its makes sport utility-type vehicles and transfer the production to its Okayama plant, the reports said, citing unnamed sources.

Also, DaimlerChrysler AG (DCX), a major producer of cars and trucks, said last month it would not raise its 37 per cent stake in Mitsubishi, citing Mitsubishi’s inability to establish a viable back-to-profit plan.

The source, while "extremely confident" that the plant here will remain open, said workers are nervous as they await news from the company about its turnaround plan.

"They want to know how we fit in the future of Mitsubishi and how we move forward," the source said.

A production slowdown has contributed to workers’ nervousness.

Starting last March, production on the assembly line here declined to 52 units from 60 units per hour, a decrease of 13 per cent.

In April 2004, about 200 workers accepted buyout packages as part of the company’s effort to pare the plant’s workforce.

The source said workers are also slightly jittery because the assembly line at the plant here has not been running every Friday for the last six to seven months. 

This June, there will also be a two-week shutdown instead of the usual one-week due to a slowdown in the marketplace.