Mitsubishi Motors announced today that they will be closing their only American car plant at a loss of @ 1,300 hundred workers in Normal IL. Production is set to stop by Novemeber.
It is the 6th largest employer in Bloomington Normal Il. This doesn't count all the local suppliers that support the plant which is in the thousands due to the requirement made in the 80 that many parts were locally made.
The Plant has a troubled history in 2004 they cut the work force and went to just 1 shift. In 2010, workers agreed to a wage cut of $1.60 an hour to keep the plant open. In return, officials ended production of four outdated models and invested $100 million to retool the plant for production of the five-passenger Outlander Sport.
The Normal, Illinois, plant, formerly a joint manufacturing venture with Chrysler, has churned out more than 3.2 million Mitsubishi and Chrysler models since 1988. It is also the only foreign-owned plant on U.S. soil that employs a union workforce. The Japanese automaker’s contract with the UAW was up for renewal next month but negotiations had not yet begun.
Mitsubishi Motors Statement:
7/24/2015
“Following a review of Mitsubishi Motor Corporation’s global supply chain, we
have been informed it is necessary to end production and seek a strategic buyer
for the Normal plant. MMC’s Board will make a formal decision in the near future
and our focus right now is to identify a buyer who would continue to operate and
maintain employment – the best potential outcome for our employees and the
community. Today, we shared this news with our employees and our intent to
work in partnership with the UAW and civic leaders over the coming months to
achieve a successful result.”
http://www.pantagraph.com/...
Reactions:
UAW
"This is a shock to all of us," said Kyle Young, vice-president of UAW Local 2488, which represents workers at the plant. "We're floored; we don't have a clue what will happen. We're all very stunned.
"This is very big; it's going to affect a lot of people and families."
The union, whose contract expires in August, was supposed to begin "nuts and bolts" negotiations on Monday, said Rod DeVary, UAW Local 2488 president. "We did not foresee this."
Illinois Department of Commerce and Economic Opportunity
“I am saddened to see a company as large and pivotal as Mitsubishi close their doors in Illinois,” said Jim Schultz, director of the Illinois Department of Commerce and Economic Opportunity. “We will be taking the necessary steps on the ground to help with job training and placement for the workers."
Some History:
The 2.4-million-square-foot plant, about 140 miles southwest of Chicago, has annual production capacity for 120,000 cars and exports to up to 50 countries. Last year, the plant built fewer than 70,000 cars, all of them Outlander Sport crossovers. Its best year was 2000, when the plant was at triple capacity churning out more than 222,000 cars. Over the factory’s 27-year history, workers assembled a dozen once-popular models: Eclipse (including the Spyder and Plymouth Laser/Eagle Talon twins), Mirage/Eagle Summit, Galant, Endeavor, and the two-door Dodge Avenger, Stratus, and Sebring models.
The plant opened in 1988, lured by $249 million in state and local subsidies, according to The Chicago Tribune. It was originally a joint venture between Mitsubishi Motors and Chrysler, but in the 1990s, Chrysler sold its half of the operation to its Japanese partner.
About four years ago, after years of declining sales, Mitsubishi announced it would phase out production by 2014. That prompted the state of Illinois to pledge nearly $30 million in tax incentives over 10 years. In exchange, Mitsubishi promised to invest $45 million to produce the Outlander Sport and retain 1,200 jobs. The state has since doled out more than $7 million in tax vouchers and training funds, according to the Tribune.
While the company is putting the plant uip for sale local thought off the record seem to think its unlikly another car company would come in and take over this plant without great tax incitives.
The Normal plant is the only Japanese-owned U.S. auto factory whose hourly workers are represented by the UAW.
Now a little personal history. I once worked for the trucking firm that brought in parts for this plant, GATX Logistics.....which is where my screen name came from. This really comes as no sup[rise to me personally. The leaders of this plant made it so that it could be dismantled in a short time and don't allow permanent buildings to be built unless 100% necessary to save on property taxes. They fought in court to pay the least amount of taxes over and over. My company offered in the 90s to build and pay for a Dispatch tower which they wanted but said it could not be built on the Plants property they said because of taxes.
This is a HUGE hit for the towns.
Some sources:
http://blog.caranddriver.com/...
http://www.pantagraph.com/...
http://www.chicagotribune.com/...
Normal and Bloomington officials discuss Mitsubishi ending production in McLean County
https://www.youtube.com/...
For locals: Anyone who is upset to the point that its affecting their health and safety, should reach out to a mental health professional through their employee assistance program or call PATH at 211.