Mitsubishi to shift small car output abroad

Mitsubishi Motors Corp. plans to halt domestic production of small cars in stages, with its new compacts for sale in Japan to be manufactured at a new plant in Thailand starting in early 2012, reports The Yomiuri Shimbun. Amid ever-intensifying competition to slash prices of compact cars, in addition to the yen’s continued appreciation, Mitsubishi has decided it is not feasible to keep manufacturing compacts domestically, company sources said. In addition to the stronger yen and the price war, Thailand’s corporate tax system is much more favorable for auto producers. Mitsubishi’s plan to move small car production to Thailand is likely to accelerate moves by other major Japanese carmakers to transfer plants outside the country. (October 16, 2010)