Advertisement

CALIFORNIA / News and Insight on Business in the
Golden State
| THE STATE / AUTOS

Mitsubishi to Fire 22 Employees, Close Offices

October 21, 1998|John O'Dell

Mitsubishi Motor Sales of America Inc. said that it will dismiss 22 employees, including three vice presidents, and eliminate about 50 other positions through attrition as it attempts to return its U.S. operations to profitability. The layoffs and payroll trimming were ordered by the Cypress-based company's executive committee as it continues a reorganization begun six months ago. Mitsubishi, the No. 5 Japanese car company in the U.S., has been losing market share for nearly a year and has lost almost $1 billion on its U.S. operations since 1996, according to the trade journal Automotive News. The company said it will close five regional offices of a subsidiary, Mitsubishi Motors Credit of America, by next summer, moving some operations to other sales offices and centralizing others at corporate headquarters in Cypress. The credit company will lose 40 positions, 15 through layoffs, and the sales operation will lose 30 posts, seven through layoffs, a spokesman said.

For the Record
Los Angeles Times Saturday October 31, 1998 Home Edition Business Part C Page 3 Financial Desk 2 inches; 38 words Type of Material: Correction
Mitsubishi profit--Mitsubishi Motors Corp. said its U.S. operations made small profits last year and so far this year, and its share of the U.S. car market has remained stable at 1.2%. Mitsubishi's U.S. finances and market-share trend were misstated in an Oct. 21 story.

Advertisement
Los Angeles Times Articles
|
|
|