Mitsubishis Leaked Plant Closure

Smoke Pursuit · 24-10-2006, 08:55 PM

Has anyone seen the 7:30 report tonight, with the leaked closure of Mits Aus?

Seem as though they are definately going to lock the show up, there were three cases I beleieve, closure in OCT 06, JUN 07 or NOV 07, with three months notice to the closure.

My concern is how deceitful Mitsubishis plans have been, and the sort of ramifications they give for the decisions made, interesting stuff, sad however for the 1600 staff and the downsize costs for dealers.

Peter Costello was a bit red faced when he was asked about it.

Falcon Freak · 24-10-2006, 09:02 PM

Does not surprise me. Last time I was at Tonsley Park the engineering office looked like a ghost town.

FF

MoreHPformyXR6 · 24-10-2006, 09:08 PM

Quote:

Originally Posted by LSTerritoryGhia

Seem as though they are definately going to lock the show up, there were three cases I beleieve, closure in OCT 06, JUN 07 or NOV 07, with three months notice to the closure.

Oct 06 shut down is not going to happen.

I dout Pete Costello would know anything about a possible shut. I hope not but time will tell. But if the media talk about it it must be true. :king:

Smoke Pursuit · 24-10-2006, 09:24 PM

Quote:

Originally Posted by MoreHPformyXR6

Oct 06 shut down is not going to happen.

I dout Pete Costello would know anything about a possible shut. I hope not but time will tell. But if the media talk about it it must be true. :king:

Costello and them have been in talks with Mits about the closure however said that was not the case, but in the leaked report it stated that the government should not be told until the manufacturer is ready to shut, same with suppliers - only a months notice.

People keep saying its not going to happen, but in reality they have to sell 30,000 units a year to break even and thats at their original margins, which were cut again when they brought out the series II. They will be lucky to break 13,000 units for 2006, the demand just isn't there and the fixed costs are too high.

October isnt over, and as they said tonight lock up will be early in Feb if we do get notice in the next few weeks, who ever leaked the report has done a very bad thing, I'd hate to be a 40 - 50 year old Mits employee tonight as their future career in Automotive is over, not to mention all their suppliers.

Falcon Freak · 24-10-2006, 09:40 PM

The demise of Mitsubishi Australia is depressing. Three years ago they were riding high and could do no wrong. They opened MRDAus (Mitsubishi Research and Design Australia) and had hired many people. Then the bug-eyed Magna was released at the end of 2003 and things started going backwards. Daimler-Chrysler divorced itself of Mitsubishi in April 2004 and that accelerated Mitsubishi Australia's slide. Since May 2004 when it was announced that the Lonsdale engine plant was to close, Mitsubishi Australia has been on borrowed time.

FF

XR Martin · 24-10-2006, 09:15 PM

Theres rumors of Mitsubishi leaving the US market completely.

Mitch_ · 24-10-2006, 09:16 PM

that will be sad if mitsubishi plant is closed in australia! :(

Deadman · 25-10-2006, 11:17 PM

Quote:

Originally Posted by mitch_anderson

that will be sad if mitsubishi plant is closed in australia! :(

here here! but looks like it's not happening (yet)...

nitroman · 24-10-2006, 09:18 PM

It's a sad state of affairs that mitsubishi(bitsashiity) are finally calling it quits in oz.
I reckon if they had listened to what people wanted and saw what people were buying (rwd 6 andv8 cars) they would still be going strong. They could have had a 380 in v8 supercar and would have been part of the regular motoring landscape. Instead they insisted that we wanted understeer instead of oversteer and went sliding off the market front first!

Homer1 · 25-10-2006, 12:14 AM

Quote:

Originally Posted by nitroman

It's a sad state of affairs that mitsubishi(bitsashiity) are finally calling it quits in oz.
I reckon if they had listened to what people wanted and saw what people were buying (rwd 6 andv8 cars) they would still be going strong. They could have had a 380 in v8 supercar and would have been part of the regular motoring landscape. Instead they insisted that we wanted understeer instead of oversteer and went sliding off the market front first!

Toyota do the same thing and they aren't exactly going out of business aren't they?

Falcon Freak · 25-10-2006, 06:53 AM

From today's newspaper

FF

Fairlane · 25-10-2006, 02:05 PM

I wish ABC would get off MMAL's back and let them get on with building cars. This whole Project Pheonix thing is annoying, MMAL has Japan's support (for the next 18months at a minimum)and will not be closing soon. You can bet that the other 4 car makers in Aus have a Project Pheonix as well just as an back up if things go wrong (You can bet Ford did around 1999).

Quote:

Originally Posted by nitroman

I reckon if they had listened to what people wanted and saw what people were buying (rwd 6 andv8 cars) they would still be going strong. They could have had a 380 in v8 supercar and would have been part of the regular motoring landscape. Instead they insisted that we wanted understeer instead of oversteer and went sliding off the market front first!

Its quite interesting this one, but its a little known fact that when MMAL was at its height, MMAL was contemplating building a RWD sedan based on the old E-class platform (like the 300c) with a V6 as a flaghship for Mitsu outside Japan. This was cut down by lack of funds and the falling out with Damiler. MMAL was then pressured to build the PS41 (Galant), a extended PS41 as a replacement for the Diamante in overseas markets and possibly a PS41 based Crossover . This off course was killed after the failure of the TL Magna (Thanks to Boulay) and left MMAL with the 380 and no chance of exporting to LHD markets.

From what i can gather by the way the TL was supposed to look like a more angular TJ and IMHO would have saved MMAL from the situation they are in. But ultimately MMAL does the best it can under tough circumstances and the ABC arent helping.

MoreHPformyXR6 · 25-10-2006, 10:22 PM

Quote:

Originally Posted by Fairlane

I wish ABC would get off MMAL's back and let them get on with building cars. This whole Project Pheonix thing is annoying, MMAL has Japan's support (for the next 18months at a minimum)and will not be closing soon. You can bet that the other 4 car makers in Aus have a Project Pheonix as well just as an back up if things go wrong (You can bet Ford did around 1999).

I couldnt agree more not only ABC I wish all & sundry would give MMAL a go. I had a Mitsubishi 2001 Lancer b4 more current car no problems with it at all. Mum has a 2000 Mirage that will be taded EOY or early next year. No dramas at all the Mirage has done just under 80k. I used Mitsubishi for servicing as well (as I got a free serving deal parts/labour when I purchased). As far as warranty work they where excellent not tight ***** like Ford warranty service & nothing was to much trouble. As for there dealer servicing it was A plus.

Smoke Pursuit · 25-10-2006, 11:04 PM

Quote:

Originally Posted by MoreHPformyXR6

I couldnt agree more not only ABC I wish all & sundry would give MMAL a go. I had a Mitsubishi 2001 Lancer b4 more current car no problems with it at all. Mum has a 2000 Mirage that will be taded EOY or early next year. No dramas at all the Mirage has done just under 80k. I used Mitsubishi for servicing as well (as I got a free serving deal parts/labour when I purchased). As far as warranty work they where excellent not tight ***** like Ford warranty service & nothing was to much trouble. As for there dealer servicing it was A plus.

I know the a bloke that actually works for some of the dealers up here with respect to warranty claims and getting money out of Mitsubishi for the dealers on lost time, and i'd have to disagree with them being good about warranty claims in general.

As for the rest Mitsubishi are full of crap, they keep telling the Government and the Media what everyone wants to here, yet they spend hundreds of thousands of dollars having reports as the one above commissioned for no good reason? The amount of detail that report goes into, and the actual fact that they go to the point of trying to decieve suppliers and the government by not giving them the due time notice required is a big concern, not to mention what they have outlined for the union.

Personally I think Rob McEniry is a ****er and should resign, on one side of the fence hes had a report written, while on the other hes trying to deny some very hardcore facts detailed in that report. Sales figures and bottom line profits tell the story how it is, they won't continue selling a dismall 900 cars a month to lose hundreds of millions doing so, I think they are hoping that some how the cars going to sell itself and pay back all the debts they incurred in trying to build it, even though its just a Galant with a nose and bum job.

Dave_au · 25-10-2006, 11:31 PM

Quote:

Originally Posted by LSTerritoryGhia

Personally I think Rob McEniry is a ****er and should resign, on one side of the fence hes had a report written, while on the other hes trying to deny some very hardcore facts detailed in that report.

Rob McEniry resigning won't save MMAL. Have a look into Rob's past as you'll understand why MMC hired him for the role of MMAL. His specialty in the automotive industry is restructure and administration, he wasn't exactly hired to make the 380 Australia's number one selling car if you catch my drift.

Additionally as for the report, whist I would consider it authentic, it really depends on which management level the report was made and what would MMAL's intentions be in relation to that report.

For all intensive purposes the report could just be an exit strategy that someone in middle management requested one of the accounting firms to draft up - or it could be a solid exit plan. MMAL's comments in relation to the report so far was that it was just a review of exit strategy options, however obviously time will tell.

It would also be interesting as to who exactly wrote the report - it certainly sounds as if it came from one of the big accounting firms, howver the ABC report didn't go into detail.

Lagom · 24-10-2006, 09:45 PM

I really don't think having the 380 in RWD would've made any significant difference.

Lets not forget that they were building 40,000 FWD Magnas back in the late 90s.

MoreHPformyXR6 · 24-10-2006, 09:53 PM

If Mitsubishi pull out of Australia (Tonsley Park Adelaide) We loose a heap of motoring history. To think that plant manufactured the great R/T Charger. Im assuming people with 380's & other Mistsubishi's can still recv factory warranty & there would still be Mitsubishi dealers around the place (probally not as many). Hope it doesnt happen but its a global economy Ford Australia have cut production. Holden have canned third shift.

Smoke Pursuit · 24-10-2006, 10:51 PM

Quote:

Originally Posted by MoreHPformyXR6

If Mitsubishi pull out of Australia (Tonsley Park Adelaide) We loose a heap of motoring history. To think that plant manufactured the great R/T Charger. Im assuming people with 380's & other Mistsubishi's can still recv factory warranty & there would still be Mitsubishi dealers around the place (probally not as many). Hope it doesnt happen but its a global economy Ford Australia have cut production. Holden have canned third shift.

Warranty and servicing wont be a problem, parts will be an issue in the long run as suppliers arent going to produce small amounts for the fun of it.

I still think the cars very good, if not better then the Camry, it certainly goes hard and looks better.

Seems as tho Mits just couldnt bring it to the market, their initial pricing structure really did do alot of damage. Brand uncertaintly with the new name plate was a bit mistake, the Magna name probarly would have done heaps better, but then again most of the Australian market is made up of fleet sales, so its anyones guess what was the real cause - resale % probarly.

RSgerry · 24-10-2006, 11:33 PM

Quote:

Originally Posted by LSTerritoryGhia

Warranty and servicing wont be a problem, parts will be an issue in the long run as suppliers arent going to produce small amounts for the fun of it.

I still think the cars very good, if not better then the Camry, it certainly goes hard and looks better.

Seems as tho Mits just couldnt bring it to the market, their initial pricing structure really did do alot of damage. Brand uncertaintly with the new name plate was a bit mistake, the Magna name probarly would have done heaps better, but then again most of the Australian market is made up of fleet sales, so its anyones guess what was the real cause - resale % probarly.

Have to agree. The pricing of the 380 initially hurt sales very badly. MA then effectively admitted the mistake by dropping the prices considerably.

I dont think a RWD 380 would have made a difference either. As stated, they were selling loads of Magnas about 10 years ago. I think the ugly Magna they released did the company a lot of damage.

I dont know if they ever fixed the build quality, but later Magnas seem to hold together reasonably well. A lot of people remember the earlier Magnas and Sigmas and wont touch a Mitsi now.

The biggest pity is the job losses. However, no company can make as many mistakes as MA have and expect to survive forever. They have dug this hole...

mik · 24-10-2006, 10:00 PM

most unfortunate, but so many competitors in a tuff market and oil pricing up and down like a yo yo, who would want to be a car manufacturer in this day and age, the big three will happily fill the gap

**Polyal** · 24-10-2006, 11:40 PM

Yeah what can you say really....

I thought they exported heaps like the camry does?

I must say, ive seen a few 380 GT/VRX's and they look hot, that should have been there base model (exterior wise).

Dave_au · 24-10-2006, 11:54 PM

Quote:

Originally Posted by LSTerritoryGhia

Has anyone seen the 7:30 report tonight, with the leaked closure of Mits Aus?

Seem as though they are definately going to lock the show up, there were three cases I beleieve, closure in OCT 06, JUN 07 or NOV 07, with three months notice to the closure.

The plan was leaked about 1 month ago, it's been noted for a while.

MMAL has already commented on project Phoenix and has stated to the effect that, like all companies, MMAL update's its relevant stategies and exit plans on a regular basis. In this case, it would appear that an exit plan has been released/leaked, but whether it is to be implemented as such is a story for another day.

FPV8U · 25-10-2006, 07:26 AM

Not good to see, alot of jobs will be lost is this happens

max · 25-10-2006, 10:07 AM

A shyteload of new tooling/pressing infrastructure got dropped into Tonsley Park for the advent of the 380, with the catch cry: we're her for the long haul.
Well........... pffffttt!! I think marketing the brand has been a problem with MMAL for a long time. And for Tommy Philips to shoot through before the 380 release did not look good. The last good ad I saw for a car product made in Tonsley Park was 'Hey Charger!' back in the early '70's.

aualright · 25-10-2006, 01:01 PM

One of the really sad part of the Phoenix project is the fact an option in the plan is to wait as long as possible to tell the suppliers (as close as a month before it is official) in order to have minimal effect on the supply chain.

According to Mitsu it appears to be just a study, and Costello was adamant he knew nothing of it but then again the current govt didn't know anything about AWB, Children Overboard, WMD existence, etc.

Who do you believe?

*****

WASP · 25-10-2006, 01:56 PM

http://www.news.com.au/adelaidenow/s...005962,00.html

Mitsubishi denies closure
October 25, 2006 12:30pm

MITSUBISHI Australia boss Rob McEniry today assured the company's workers it did not plan to close its Adelaide car manufacturing operations.

Mr McEniry issued a letter to workers today following a report on ABC TV last night which said a leaked draft document titled "Project Phoenix" existed which detailed plans to close the Tonsley Park vehicle assembly operations.

He said the draft report referred to by the ABC was a flawed study based on some work by an external agency and its recommendations had been totally rejected by Mitsubishi Australia management.

"Once again, please be assured that there has been no decision nor plan to cease production at our Tonsley Park manufacturing plant," Mr McEniry said in his letter.

"Mitsubishi continues to perform to expectations and is tracking in line with our business plan and budgets for 2006."

Mr McEniry said his primary concern now was the impact the continued speculative reports had on the welfare of the company's employees and their families.