UPDATE 1Mitsubishi yet to decide on Australia plantGovt
(Updates with Australian state, national government comment)
TOKYO/CANBERRA, Feb 4 (Reuters) - Mitsubishi Motors Corp
(7211.T: Quote, Profile, Research) is yet to decide whether to shut its car factory in
Australia due to slumping sales, Australia’s government said on
Monday following a report the company planned to close it down.
“I am advised that Mitsubishi Australia’s position is that
no final decision has been made,” Australia’s Industry Minister
Kim Carr told Reuters.
The Japanese automaker has been studying what to do with
the unprofitable factory in the southern city of Adelaide. It
is due to unveil a new mid-term business plan in March.
Bloomberg news agency reported on Monday that Mitsubishi
planned to shut the factory, as it loses out to competition
from cheap imported cars.
Citing three unnamed company officials, Bloomberg said the
timing of the closure had not yet been decided. Japanese
business daily Nikkei said the factory, which builds the large
380 sedan, could halt production as early as March.
Mitsubishi Motors built just over 10,000 cars at the
factory last year, against a capacity of 30,000 vehicles a
year.
Speculation about the closure of the factory has swirled
for the past few years, while the government has granted
Mitsubishi Motors more than A$100 million this decade to help
with its restructuring.
Carr, whose centre-left Labor government was elected in
November, said he was “closely monitoring developments”. Continued…
