Mitsubishi Motors North America Announces Production Capacity Adjustment at its Normal, Illinois Plant

CYPRESS, Calif., July 21 -- As part of its North American turnaround plan, Mitsubishi Motors North America announced today the company will adjust production at its Normal, Illinois plant, moving from a two-shift to one-shift production schedule starting in October 2004. The move is part of strategic efforts by the company to more closely align its production volumes with market demand, maximize resources and increase long-term profitability for the company and its dealerships.

"We have significantly reduced our dependence on fleet sales and eliminated risky consumer financing products, which have resulted in lower sales volumes. As we work to rebuild natural retail demand for our vehicles, our production volumes must be adjusted accordingly," said Finbarr O'Neill, chairman and chief executive officer, Mitsubishi Motors North America. "This capacity adjustment will put us on a more solid foundation for long-term sustainable growth and profitability. We need to be a market-driven, not a production-driven company."

The plant volume adjustment will result in a headcount reduction of approximately 1,200 employees, from the current 3,150 working there. Only Mitsubishi Motors employees at the Normal plant are affected by the announcement.

"We are very saddened to reduce our plant staffing because of this adjustment. This was a very difficult decision, but we believe it is necessary for the long-term success of the company," said Rich Gilligan, president and COO, MMNA Manufacturing Division. "We have some of the finest employees in the industry, who are producing award-winning quality vehicles, and we have one of the most flexible and highly productive automotive plants in the country. This adjustment will help position Mitsubishi Motors more strategically for the future."

Mitsubishi Motors North America, Inc., (MMNA) is responsible for all manufacturing, finance, sales, marketing, research and development operations of the Mitsubishi Motors Corporation in the United States, Canada, Mexico and Puerto Rico. Mitsubishi Motors sells coupes, convertibles, sedans and sport utility vehicles through a network of nearly 700 dealers throughout North America. For more information, contact the Mitsubishi Motors News Bureau at (888) 560-6672 or visit media.mitsubishicars.com.