Mitsubishi's Normal production stoppage extended 5 weeks

Mitsubishi Motors North America will extend its previously announced seven weeks of non-production by five additional weeks this spring.

Mitsubishi will stop production at the plant in Normal from Feb. 16 through May 8, the company announced Tuesday. Production is scheduled to resume May 11. During those 12 weeks, union workers still will be able to report to work for full pay, said spokesman Dan Irvin.

The company extended the non-production period that was first planned to end April 6 as it tries to match inventory with demand in a tough economy, Irvin said.

“We constantly review the inventory here, on the ground at the dealerships, on the ground at the ports to go overseas,” Irvin said. “Our best determination is to keep the inventories in line ... we should take now 12 weeks instead of seven.”

Mitsubishi sold 97,257 vehicles last year, a nearly 25 percent decrease from the 128,993 sold in 2007. It makes nine models.

Production at the Normal plant, which builds the Galant, Eclipse, Eclipse Spyder and the Endeavor, also was down 25 percent in 2008. Workers built 59,018 vehicles last year, compared to 78,732 the previous year.

“Sales drive the production,” Irvin said.

During the upcoming 12 weeks of non-production, union associates still will be able to work their regular hours at full pay, Irvin said. While workers will not build cars, they can perform maintenance tasks or attend training. They also can prepare for 2010 models, which primarily involves training but also some equipment work and testing, Irvin said. Union members also could take vacation, he said.

Pay options, however, have not been finalized for non-union staff members, including line supervisors, engineering, purchasing and human relations, Irvin said. He declined to elaborate on what options are being considered, including whether pay cuts or a reduction in hours might be enacted.

It’s because of the union’s contract agreement last fall that members still can come to work every day and earn income, which is important in tough economic times, said United Auto Workers Local 2488 President Ralph Timan.

Union members agreed to pay and benefit cuts in the new contract in exchange for the promise of no layoffs. Mitsubishi laid off about 1,200 workers in 2004 when the plant eliminated its second shift.

“Our members were asked to sacrifice quite a bit,” Timan said. “In return, we were given guarantees of job security.”

Nonetheless, the extended shutdown is another unfortunate result of the country’s economic conditions, Timan said.

“It’s not news you want to hear. We want to see the plant running at its capabilities,” Timan said. “The sales aren’t there right now.”

And whether sales and production will continue their sharp declines is just another economic uncertainty right now.

In the first three weeks of 2009, Mitsubishi produced 1,739 vehicles. The company built 7,112 vehicles for the entire month of January in 2008 and ended the year building 3,256 vehicles in December.

How 2009’s production tally compares to 2008 statistics will depend on what happens with the economy, consumer confidence and the credit market this year, Irvin said.

“Anyone who tries to make production predictions is tossing a coin,” he said.

MMNA production

Like company sales, production of the vehicles Mitsubishi Motors North America builds in its Normal manufacturing division was down last year. The chart below compares 2007 vehicle production to 2008.

Vehicle...2007...2008...Percent change

Galant...32,445...38,536...+18.8

Eclipse...22,670...12,020...-47

Eclipse Spyder...7,695...3,924...-49

Endeavor...15,922...4,538...-71.5

Total...78,732...59,018...-25

SOURCE: Mitsubishi Motors North America