Mitsubishi Motors to widen production cuts on falling demand

December 24, 2008 - 0:0

TOKYO (Bloomberg) -- Mitsubishi Motors Corp., the Japanese maker of Outlander sport-utility vehicles, will scrap the night shifts at two domestic factories as the deepening global recession saps auto demand.

The carmaker will halt the night shift at its Mizushima plant, excluding the minicar line, from Jan. 26, Kai Inada, a spokesman for the Tokyo-based company, said on Tuesday by phone. Nighttime work at the Okazaki factory will stop from Feb. 2.
The cuts are part of Mitsubishi’s move to reduce planned output by 110,000 vehicles in the year ending March because of tumbling sales in Japan, the U.S. and Europe. Japan’s vehicle sales may fall to the lowest in 31 years in 2009, according to the country’s automobile manufacturers association.
Mitsubishi will also halt production of passenger cars on every Friday next month at the Mizushima factory in western Japan. The Okazaki plant in central Japan will close every Saturday in January and for another five days.
The company’s shares didn’t trade on Tuesday because of a national holiday.