New Mitsubishi pact may have plant only open until Aug 2012

While auto workers at the Normal, Illinois received a new contract from the Diamond Star plant that started as a Chrysler/Mitsubishi venture, it has a stipulation in it that in combination for some pay cuts, the plant will stay open until August 2012, when it the plant's fate will be decided.

The plant has the capacity to produce nearly 1/4 of a million vehicles, but can be profitable if it produces over 100,000. The factory makes Mitsubishi’s Galant, Eclipse and Endeavor, none of which have posted strong sales in recent years.

Yes, it's a great thing to have a contract and job security for an additional 4 years especially in the face of the American economy, but when it's unknown if the plant will even stay open at that point, much less a contract negotiation, can't feel too great to the UAW. Mitsubishi’s president, Osamu Masuko, acknowledged the plant’s difficulties when he spoke to Automotive News recently.

“We are seriously re-evaluating our U.S. operations as to what kind of automobiles we should manufacture there, and eventually we hope to announce our decision,” Masuko said.

“It is very difficult to sell the kinds of cars we are producing in this factory.”

via LeftLanenews.com

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New Mitsubishi pact may have plant only open until Aug 2012

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