TOKYO – Mitsubishi Motors plans to build cars in Myanmar as the Japanese automaker strengthens its commitment in Southeast Asia, CEO Takao Kato told Nikkei, paving the way for a market affected by the coronavirus pandemic.
Kato said his company hopes to “collaborate” with Mitsubishi Corp., the 20% stake in the automaker and is familiar with the local market. The details, such as the timing and form of the business, have yet been decided.
Mitsubishi Motors has reversed its preference for broader expansion to focus on the Association of 10 Southeast Asian Members as a component of a medium-term plan published last month. The manufacturer will allocate resources to the region, which generates about a quarter of the company’s sales.
The Japanese manufacturer already has a production base in Vietnam, as well as in Thailand, Indonesia and the Philippines. Another Vietnamese plant is also under consideration. The plan is to get Myanmar on the list.
Operations in Europe and other key regions will be carried out through the reduction of personnel. Combined with hiring barriers and a review of the payment system, the automaker targets administrative labor prices by 15% until the end of fiscal year 2021 from fiscal year 2019.
Mitsubishi Motors is grappling with the consequences of the promotion through disgraced former President Carlos Ghosn, who has doubled as chairman of lead shareholder Nissan Motor.
The medium-term plan calls for the closure of a plant of the Pajero Manufacturing gaming application vehicle subsidiary and the freezing of new model versions in Europe. These rationalization efforts will allow the company to “reach the aid target (20% of costs),” Kato said.
When asked about the corporation’s 3-member alliance with Nissan and French player Renault, Kato said Mitsubishi Motors “will take part in discussions about the spaces in which win-win agreements can be concluded.” At the same time, “it’s not realistic to force yourself to look for spaces for collaboration,” he said.
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