Mitsubishi Doomsday Clock - When Do We Start Counting? UPDATE: Right Now.

Mark Stevenson
by Mark Stevenson

UPDATE: Mitsubishi has officially announced they will close the Normal, Ill. plant and are looking for a “strategic buyer.” This article was originally written a couple of hours before the announcement. Our Mitsubishi Doomsday Countdown starts right now, putting Mitsubishi’s Best-Before Date at Tuesday, January 16, 2018.

When Suzuki decided to stop building their last self-produced model in North America, the seven-seater XL7, in the midst of the U.S. economic crisis, it was just another nail in the coffin for that looked to be inevitable — the end of Suzuki sales in North America.

The CAMI plant in Ingersoll, Ontario, Canada — a plant that still cranks out GM products to this day — was an integral part of Suzuki’s success and ultimate demise. Much like the Normal, Illinois Mitsubishi facility, the CAMI plant started as a joint venture between General Motors and its new Japanese BFF.

General Motors, like Chrysler, wanted to leverage product from Japanese automakers. Chrysler went after sports cars while GM affixed the badges of many brands — Chevrolet, GMC, Pontiac, Geo, Passport and Asuna — to the grilles of Sidekicks and Swifts to sell on the lots of its own dealers.

The CAMI plant gave Suzuki a local presence. People bought the Sidekick and its GM-badged brethren in droves — right up until the point they didn’t.

Suzuki, too little and too late, cut its ties with CAMI on May 12, 2009. However, the Normal story is a fair bit different, as it wasn’t Mitsubishi to pull out of the joint venture. In 1991, Chrysler divested part of its share in the joint venture and plant, giving Mitsubishi overall management control. Two years later, Chrysler would sell the remainder of Diamond-Star Motors to Mitsubishi, effectively ending the formal joint-venture partnership. DSM ceased to exist in 1995 when the joint-venture company was renamed Mitsubishi Motor Manufacturing of America.

For Suzuki, it took 907 days after the end of manufacturing before the company packed it in for good in the U.S.

During the economic crisis, I was one of the many who also predicted the end of Mitsubishi in America.

Today, I’m not so sure.

Mitsubishi is making gains in sales, even if those gains are mostly on low-margin products. Also, there is a fair amount of new product on the horizon if the rumor mill is to be believed, and it could prop up the small Japanese automaker long enough to sort out its issues before the next inevitable recession.

Maybe.

Will Mitsubishi meet the same fate as Suzuki? Are we in for a 907-day wait before its ultimate end? We will see. If/when Mitsubishi makes a formal announcement on the future of Normal, we will start the clock.

Mark Stevenson
Mark Stevenson

More by Mark Stevenson

Comments
Join the conversation
3 of 89 comments
  • 28-Cars-Later 28-Cars-Later on Jul 25, 2015

    This should be interesting to watch. Mgt appears to be working with UAW for a sale too, another interesting development (although this may simply be smoke and mirrors). I'd also be interested to know when the latest labor contract was set to expire and how many of the employees are at or near UAW retirement age as I speculated last year. http://www.thetruthaboutcars.com/2014/07/review-2014-mitsubishi-mirage-es/#comment-3535402

    • Pch101 Pch101 on Jul 25, 2015

      The UAW isn't a factor here. There is simply not much demand for used automobile manufacturing plants. Many of them just sit vacant.

  • Wmba Wmba on Jul 25, 2015

    What, no Chrysler fanbois claiming it was all Mercedes Benz's fault? This columnist at Car&Driver says so, and its interesting to read how the Germans set themselves up at Normal: http://m.caranddriver.com/columns/aaron-robinson-many-are-implicated-in-the-slow-murder-of-mitsubishi-column But home in Japan back in 2000, Mitsubishi was in a huge safety cover-up scandal concerning 20 years of not admitting defects to Japan's equivalent of NHTSA, which quickly eroded their market share. Sales dropped over 50% in Japan, and even then people wondered if the company would close. Twelve executives were arrested. Wheels literally falling off trucks caused the scandal, because like GM, Mitsubishi covered up. http://www.washingtonpost.com/wp-dyn/articles/A29583-2004Jul5.html Of course, the new management promised everything would change, but they lied, and in 2012 got caught again covering up defects: http://mobile.reuters.com/article/idUSBRE93M09E20130423?irpc=932 Yes, they are honorable folks, Mitsubishi (/sarc). No wonder the whole thing is circling the drain, and really who needs this bunch of complete losers running a company? Probably why their heiretsu isn't falling over itself awarding Mitsubishi Motors more credit - they're not considered trustworthy even at home. The usual commenter opinions above are US-centric, as is the wont of Americans. But in the wider world, Mitsubishi is an even worse outfit than you had probably thought, proving that given a chance even the Japanese business world also suffers from bad, possibly criminal management tactics, and public bowing and scraping to be better that signifies nothing much at all, except deception and an unwillingness to change no matter what.

  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.
Next