Poor Sales Force Mitsubishi Out Of The US, Three Years After Quiting Europe

via Industry Week | Business

Sample Stats: June, 2015 Auto Sales Figures: Mitsubishi sales 7,963 vehicles, Toyota sales 209,912 vehicles and Honda sales 134,397.

Mitsubishi Announce Plans To Quit The US. (Credit: via Wiki)

Declining business is bad news for Mitsubishi which Friday announced it intends to quit the US and seek a buyer buy out of its manufacturing facilities there. Mitsubishi is looking to sell its plant in Normal, Illinois.

In a statement reported by the Industry week, Friday, Mitsubishi Motors North America said: "Following a review of Mitsubishi Motor Corporation's global supply chain, we have been informed it is necessary to end production and seek a strategic buyer for the Normal plant."

But car sales are expected to continue through associate dealerships across the US, said refocusing Mitsubishi, which stopped production in Europe three years ago and is looking to concentrate in Asia, Thailand and Philippines where it hopes to buy a factory from Ford.

Friday's statement said "The North American market remains a priority for Mitsubishi Motors".

It is bad news for over 1,250 employees of the Illinois factory who will loose their jobs, but with only about half of its capacity (60.000) cars produced, and selling far less vehicles than other the competition, it seemed the decision was unavoidable, despite increasing sales.

In fact Mitsubishi's US vehicle sales jumped 24.9 percent in the first half of 2015 from the same period a year ago. But looking at the above figures, paints a different scenario, trailing behind rivals.

"The company, which withdrew from production in Europe three years ago, will be the first major Japanese automaker to stop building in both the United States and Europe, it added," according to the report.

Sport was the company's best-seller, accounting for about half the sales.