Mitsubishi Motors Corp said yesterday it would cut 1,100 jobs, laying off one-third of its temporary workers in Japan, as it reduces production to cope with sagging sales.
Japan’s fourth-biggest carmaker said it would not renew contracts with the workers when they expire at the end of March.
“We are adjusting production in order to reduce inventory stockpiles in view of the recent economic and market conditions,” the company said in a statement.
Mitsubishi aims to reduce its production in the current fiscal year to March by a further 30,000 vehicles, in addition to a reduction of 80,000 announced last month, a company spokesman said.
Mitsubishi has lagged behind other Japanese automakers as it recovers from a defect cover-up scandal that badly hurt its reputation, but other carmakers are also shedding temporary workers.
Toyota Motor Corp has said it plans to axe 3,000 jobs — half of its temporary work force in Japan.
Nissan Motor, Japan’s No. 3 automaker, is shedding 3,500 jobs worldwide, while Mazda is scrapping 1,300 temporary jobs and truckmaker Isuzu is axing 1,400 domestic posts.
Separately, Nissan reversed an earlier decision and said it would participate in the Chicago Auto Show.
The Japanese automaker, which said earlier this week it was pulling out of the Detroit and Chicago auto shows to cut expenses, has decided to participate in the exhibitions, spokesman Yuichi Nakagawa said by telephone yesterday.
The Chicago Auto Show, which starts on Feb. 11, is North America’s largest, according to the show’s Web site. Carmakers typically use the shows to generate excitement for new models and showcase concept cars.
Nissan became the seventh carmaker to pull out of the Detroit show, scheduled to start on Jan. 11.
Last week Mitsubishi Motors Corp said it wouldn’t attend Detroit this year, following similar decisions by Suzuki Motor Corp, Ferrari SpA, Land Rover and Bayerische Motoren Werke AG’s Rolls-Royce. Porsche SE abandoned Detroit last year.
General Motors Corp, which has said it may run out of cash before the end of the year, is scaling back its presence this year at the Detroit show, as it lobbies with Ford Motor Co and Chrysler LLC for US$25 billion in federal loans.
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