Mitsubishi in strife already

[TurboDOHCI6]

Mitsubishi to cut 250 jobs, says union

Embattled car maker Mitsubishi wants to cut 250 jobs at its Adelaide vehicle assembly plant, Australian Manufacturing Workers Union (AMWU) state secretary John Camillo says.

Mr Camillo said the move had been forced on the car producer because of slower than expected sales of its new 380 sedan since its launch in October last year and a general slump in large car demand, Mr Camillo said.

It comes after the company cut 1,000 jobs last year, including about 650 with the closure of its engine manufacturing plant.

It also follows a decision by rival Holden to cut its third shift in Adelaide at the end of last year with the loss of about 1,400 jobs.

Mr Camillo said Mitsubishi wanted the 250 workers to go at its Tonsley Park assembly operations to take voluntary redundancy packages and finish up by the end of March.

He said with imported cars now accounting for about 70 per cent of all sales, all four car manufacturers in Australia were doing it tough.

"Australian buyers really have to think about buying local," he said.

Mitsubishi officials were not available for immediate comment.

http://www.theage.com.au/news/Busine...553752787.html

Not good

[foxtrot]

Holy ИИИИИ!!! I work at the Adelaide vehicle assembly plant!!!!!

NOOOOOOOOOOOOOOOO

[foxtrot]

Originally Posted by foxtrot

Holy ИИИИИ!!! I work at the Adelaide vehicle assembly plant!!!!!

NOOOOOOOOOOOOOOOO

You probably guessed that I wasn't serious :nutsycuck

[Homer1]

Originally Posted by foxtrot

You probably guessed that I wasn't serious :nutsycuck

I think your location gave it away straight away......unless you fly to work everyday :nutsycuck

[apolloxbgt]

But not unexpected.

[Lukeyson]

thats pretty sad, because when it comes down to it, it means aussies out of jobs.

[The Taipan]

You can't expect people to buy ИИИИty cars, run them on ethanol and fly budget airlines weekly like some seem to expect.

Why should the Australian people, via the Government, need to prop up businesses that are not viable. The sugar industry is failing - but that doesn't mean all forms of farming need to fail, we can move onto other things WITHOUT forcing ethanol down our prverbial throats, ditto grants given to Mitsubishi in the past - if they can't produce a product that can compete it probably doesn't need to be there or there just isn't enough sales to support more than three local manufacturers and five cars (380, Camry, Avalon, Falcon and Commodore) competing for the exact same market - while other markets remain relatively unexplored (sure Corollas, Pulsars and Lasers were built in Oz for a short time). Ditto budget airlines - it seems obvious that we just don't have a big enough market to support too many airlines, but it seems to come up every few years also...

Yes it is sad that Australian jobs are being lost, but the sadest part is probably more that the people at the top just don't care, that's why these stupid decisions keep getting made, and why I don't think Government "grants" "aid packages" or whatever they call them will work - unless they suddenly create a new market for the product.

[4.9 EF Futura]

Originally Posted by The Taipan

You can't expect people to buy ИИИИty cars, run them on ethanol and fly budget airlines weekly like some seem to expect.

Why should the Australian people, via the Government, need to prop up businesses that are not viable. The sugar industry is failing - but that doesn't mean all forms of farming need to fail, we can move onto other things WITHOUT forcing ethanol down our prverbial throats, ditto grants given to Mitsubishi in the past - if they can't produce a product that can compete it probably doesn't need to be there or there just isn't enough sales to support more than three local manufacturers and five cars (380, Camry, Avalon, Falcon and Commodore) competing for the exact same market - while other markets remain relatively unexplored (sure Corollas, Pulsars and Lasers were built in Oz for a short time). Ditto budget airlines - it seems obvious that we just don't have a big enough market to support too many airlines, but it seems to come up every few years also...

Yes it is sad that Australian jobs are being lost, but the sadest part is probably more that the people at the top just don't care, that's why these stupid decisions keep getting made, and why I don't think Government "grants" "aid packages" or whatever they call them will work - unless they suddenly create a new market for the product.

From a philosophical perspective i agree with this. Altho morally i think it's a bit harsh - if it takes a grant here and there to ensure food for a couple of thousand families then so be it - its money well spent IMO (better spent than a lot of government $$$). Our state government has promised that if mitsubishi ever decides to leave, there will be a HUGE leaving-town-tax to recover the state funding that has been poured into them.

However, look beneath the surface and im confident mitsubishi has not been the only vehicle manufactuer to benefit from government funding.

I must say im seeing a few 380s around now (not nearly as many as i expected to see) and i really really really.... dont care for them.

Anyways, my thoughts lay with the employees and their families - it cant be nice to wake up in the morning and have threats of plant closure floating around in your head.

[Falcon Freak]

Mitsubishi is not alone when it comes to receiving handouts. The whole local automotive manufacturing industry is government subsidised. It is called ACIS which they try to package as rewarding local R&D.

FF

[foxtrot]

Oops!!

[bathurst77]

Mitsubishi confirms job cuts
From: AAP By Tim Dornin
January 20, 2006

EMBATTLED car maker Mitsubishi is to cut 250 jobs at its Adelaide vehicle assembly plant as rising petrol prices bite into the large car market.

President and chief executive officer Rob McEniry said the company had to cut production levels to ensure the long-term viability of its manufacturing operations.
"Although our Mitsubishi 380 has increased its share of the large sedan market over the outgoing Magna, both the total market and the large car segment have recently been softening," Mr McEniry said.

"Consequently, we are proactively reducing our production levels to protect the life cycle value of the new 380."

But contrary to previous practices, Mitsubishi will not be following other manufacturers into excessive discounting programs in order to keep production levels artificially high.

"That strategy invariably leads to higher inventories and heavy discounting to move the excess stocks," he said.

"This in turn has a disastrous effect on the re-sale values of those cars."
Mr McEniry said production levels at the Tonsley Park plant would be reduced from about 32,000 to 27,000 vehicles this year and in line with that cut the company would offer 250 workers a voluntary separation package.

Details of the package would be outlined to workers next Monday and those considering accepting the deal would have a week to decide.

The job cuts were expected to be finalised by the end of March.

Mitsubishi said it was optimistic enough workers would come forward to accept a package, with the staff reductions to cut total employment to about 1700.

The latest job losses follow a decision by the company in 2004 to axe 1000 jobs including 650 by closing its Lonsdale engine plant in Adelaide.

They also follow a decision by rival Holden to cut its third shift in Adelaide at the end of last year with the loss of about 1400 jobs.

Australian Manufacturing Workers Union state secretary John Camillo said with imported cars now accounting for about 70 per cent of all sales, all four car manufacturers in Australia were doing it tough.

"Australian buyers really have to think about buying local," he said.

[bathurst77]

When the 380 was launched, Mitsu were talking about sales of 2500 per month.
In december the 380 sold 947
This has tobe aworry for Mitsubishi

compared to the 2005 monthly average of about
7500 for commodore
6000 per month for falcon,
3000 for camry
2000 a month for territory.
(note the falcon and commy numbers include utes, crewman etc.)

[The Taipan]

having a quick read through that, it seems those grants give money for projects which HOPEFULLY improve the marketability of these vehicles - things like improving fuel efficiency. That is different to just giving $$$ for the sake of keeping people employed for that one year... Its better than I thought, but I think they should be made to earn it - for example if they can meet certain fuel economy goals, or local content percentages perhaps they get better funding?

SL

[xe351]

It is sad in a way, jobs an all, but i kinda expected it to be a slow mover. Mitsubishi Aus need a hero car i think, and needed to offer something that the others don't. Who would consider a 380 if it was a rear or four wheel drive with a turbo or something fun?
Also i havnt really seen much marketing for it, i think its worse than Fords marketing

[Deadman]

Originally Posted by xe351

Who would consider a 380 if it was a rear or four wheel drive with a turbo or something fun?

I'd probably own one now if that was the case :

[Group C]

I guess the writing was on the wall at Mitsubishi when their former President, Tom?? Reynolds (I think that was his name??) resigned from the job just before the 380 was realised, even when he had been on various TV ads claiming how great this car was.
I also seem to remember reports that the 380 was the 'make or break' car for Mitsu Aust also, a bit like the BA was to Ford after the AU diaster. Will 250 jobs being cut be the extent of it, or just the start of the cuts to Mitsu in Aust as a whole??
Maybe they have put too many eggs in one basket??

BTW, I'm not a fan of the 380. IMO, it's a big bubbly shaped front wheel drive car, trying to survive in a market that dominated by 'tough' looking rear wheel drive cars (Commodore and Falcon).
It's a shame that more hard working Aussies will go to the un-employment que because of another under performing Australian product.

[danv8]

Originally Posted by Group C

I guess the writing was on the wall at Mitsubishi when their former President, Tom?? Reynolds (I think that was his name??) resigned from the job just before the 380 was realised, even when he had been on various TV ads claiming how great this car was.
I also seem to remember reports that the 380 was the 'make or break' car for Mitsu Aust also, a bit like the BA was to Ford after the AU diaster. Will 250 jobs being cut be the extent of it, or just the start of the cuts to Mitsu in Aust as a whole??
Maybe they have put too many eggs in one basket??

BTW, I'm not a fan of the 380. IMO, it's a big bubbly shaped front wheel drive car, trying to survive in a market that dominated by 'tough' looking rear wheel drive cars (Commodore and Falcon).
It's a shame that more hard working Aussies will go to the un-employment que because of another under performing Australian product.

You mean Tom Phillips.

Although its true I am not a fan of the 380 much I have driven one and its actually a good car to drive. But its as interesting as a wet sock really.
But I agree it is a shame but then again the CEO (tom) put his neck in a noose giving the nod to the god awful ugly as sin TL Magna. Now that he has gone and left the mess to an ex GMH CEO to clean up.


Guess what?

Its still a f'n mess.
No one wants them and I can see why.

[Group C]

Originally Posted by danv8

You mean Tom Phillips.

Thanks Dan.
I didn't think his name sounded right when I wrote it!!

[Dodge]

jobs gettn cut, rate rises, = lots of toys sold off b4 the bank takes over and theres a flood of homes up for sale. The 380 is a bag of rubbish and sales in Mitsubishi will drop. My new triton ute is a bag of thailand poo, paint is lifting after 3mths , battery has also died , cant see how they put a 10 year warrenty on these cars.

[Danny]

Not a fan of the 380 either. They have failed to do their job that everyone expected. I'm not surprised now because on the road, the base model is as bland and coring as a Camry (even the base camry still has an interesting Lexus like front).

The original ad's with the GT 380 looked great. But people just aren't buying them.

[chich]

Originally Posted by Danny

Not a fan of the 380 either. They have failed to do their job that everyone expected. I'm not surprised now because on the road, the base model is as bland and coring as a Camry (even the base camry still has an interesting Lexus like front).

The original ad's with the GT 380 looked great. But people just aren't buying them.

They havn't failed at doing their job. Get behind the wheel of one and you'll actually find they've done a fantastic job - its a very nice car to drive. I drove a pre-production 380 (mr falcon freak will know about this :voldar02: ) and was stunned at how comfortable and compliant the suspension was - way better than the BA, VZ and Camry... and before you ask yes i have driven all of the aforementioned models so i have grounds for comparison. In regards to asthetics thats up to the individual - personally i think the base models look pathetic externally with s**tty hubcaps however the high end models actually look the goods. On the inside little things like cheap door handles and the silly centre console layout ruin it, but hey, all other Australian cars have similar flaws (e.g. the BA/BFs oversized steering wheel).

The 380 is a capable car so it'll be a shame to see it fail. Personally i think its a marketing job - get people behind the wheel and they too will leave impressed. It might not be something your typical Falcon/Commonwhore buyer would purchase but neither is a Camry and look how many of those Toyota is selling...

[Falcon Freak]

Yes I also drove pre-production 380s. They drive very well and crap all over the superceeded Magna. The thing holding back MMAL is the styling of the 380 and the one-dimensional model line-up.

FF

[blutura]

Originally Posted by chich

...but hey, all other Australian cars have similar flaws (e.g. the BA/BFs oversized steering wheel)...

what? your kidding right? Ford significantly downsized the wheel from EL/AU size to BA size and its also a lot smaller than the Commodore's wheel.

if your looking for flaws in the BA then perhaps you should start with the cheap looking/feeling interior roof covering.

[chich]

Originally Posted by blutura

what? your kidding right? Ford significantly downsized the wheel from EL/AU size to BA size and its also a lot smaller than the Commodore's wheel.

if your looking for flaws in the BA then perhaps you should start with the cheap looking/feeling interior roof covering.

I should have been more specific... i was refering to the airbag in comparison to the size of the wheel. Its proportions are all wrong. And the material the wheel is made out of is CRAP.

[Thunder]

Everyone in the industry and most importantly Mitsubisha Australia all said that the 380 was going to make or break the company. Mistubishi knew it. To think that this is what they came up with is honestly like they did not take the challange serious.

All aussie built cars drive fine, can handle, feel comfortable, and have enough power. But what sell is what YOU like about it. The biggest seller for the 380 is the standard model not any sports or luxary models, thats why i am so surprised with the final product of the base 380.

Mitsubishi could not afford to take a risk on such a [INSERT WORD HERE] looking car. They needed to make a car that is "easy on the eyes" as say a BA/BF or VY etc.

Mitsubishi are doomed with the 380 IMHO

[Danny]

Originally Posted by chich

They havn't failed at doing their job. Get behind the wheel of one and you'll actually find they've done a fantastic job - its a very nice car to drive..

I never said that Mitsu had failed at making a good car. They have failed to appeal to the masses, to make an appealing, and eye catching car that people want to own. and I agree with what was said at the top of the page, Mitsu borrowed too heavily on the US galant to have taken the challenge (to design a "make or break" car) seriosuly.

Ford took the BA seriously. People were lining up for BA's months before they even were in showrooms. That is what i feel is a successful make or break car.

[Jeld-Wen Falcon]

The car they have for the market they are targetting isnt good enough. Im sure the car itself is great but up against the others in the market, it has no chance.

[302GXL]

I work for a Mitsubishi supplier and was given a base model 380 as my new work car.
Inside is not so bad, except the lack of head room in the back. If you are 6 foot or over there is plenty of leg room but you get a stiff neck.
Doesn't worry me though as there is plenty of room in the front ;)

Otherwise despite being FWD, it is quite a nice car to drive and has great air con.

If I was looking to buy one however the cheapest you'd go is the VRX but the pricing between it and an XR6 make the 6 speed XR6 a clear winner.

[Tiapan]

i like the look but was let down, gay motor needs cubes

[Homer1]

Originally Posted by Tiapan

i like the look but was let down, gay motor needs cubes

How big does a V6 need to be?? Its 3.8L, bigger than a Crappodore and only 0.2L smaller than a Falcon.