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Mitsubishi to phase-out U.S. production, close Normal plant

Mitsubishi Motors North America, Inc

Mitsubishi Motors says it will end production at its only U.S. production facility in Normal by May of next year. Company officials told workers this morning the phase-out will begin in November, and that the company will assist in trying to find a buyer for the plant. Kent Ferguson of Urbana is a tool and die maker at the central Illinois plant. He says workers never really bought into speculation that the threat to sell the plant was just a bargaining ploy in upcoming talks with union workers.

"I don't think anyone ever figured this was a negotiating ploy. I think, the fact that we're not making many cars and that fact that the car we do make is made overseas also, and they're opening plants in southeast Asia and they've really been working toward getting themselves in the Asian market." - Kent Ferguson, Mitsubishi employee

Mitsubishi currently builds the Outlander Sport crossover utility vehicle, which is the company's best-selling model. Ferguson, who began working at the plant shortly after it opened in 1988, says he's not sure what he'll do next. In a statement to the media, Mitsubishi said it is reviewing its global supply chain and decided it was necessary to end U.S. production. Mitsubishi employs about 1,200 workers but had as many as 3,000 workers before the work force was reduced to one shift in the early 2000s. In 2002, the plant produced more than 200,000 vehicles. Currently the annual output is about 64,000.