Mitsubishi Motors to Close Plant in Central Japan

Economy

Tokyo, July 22 (Jiji Press)--Mitsubishi Motors Corp. <7211> is considering closing an automobile plant of subsidiary Pajero Manufacturing Co. in Gifu Prefecture, central Japan, informed sources said Wednesday.

Mitsubishi Motors aims to cut fixed costs because its new vehicle sales are slumping due chiefly to weak demand caused by the coronavirus pandemic, the sources said.

The automaker is expected to include the envisaged plant closure in a new medium-term business program to be announced Monday.

The subsidiary builds such SUVs as the Pajero and the Outlander as well as the Delica D:5 minivan. Production adjustment is going on there from April due to the COVID-19 crisis.

Mitsubishi Motors was in dire straits even before the crisis struck, owing to lingering effects from its fuel economy data manipulation scandal, which came to light in 2016.

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Jiji Press