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Mitsubishi Motors North America, Inc. - Manufacturing Division

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OVERVIEW

Located in Central Illinois, Mitsubishi Motors operates one of the most technologically advanced automotive manufacturing facilities in the world, with a current production capacity of 149,000 vehicles annually. Approximately 1,000 robots are housed in the nearly 2.4 million square foot facility situated on 636 acres of property.

In 2003, the Harbour Report, which annually measures the productivity of auto manufacturing operations, rated Mitsubishi Motors number one in assembly productivity among North American automobile manufacturers. The honor capped a five-year climb to the top in which the plant improved its hours per vehicle (HPV) assembly by nearly 45 percent, rising from last place in 1998 to the best in the industry. MMNA ranked No. 3 in 2002 and 2004.

The facility is designed to accommodate several different models intermixed on one assembly line, currently producing the Mitsubishi Eclipse sports coupe, Mitsubishi Eclipse Spyder convertible, Mitsubishi Galant mid-size sedan and Mitsubishi Endeavor crossover SUV, in addition to the Dodge Stratus and Chrysler Sebring coupes for the DaimlerChrysler Corporation.

Endeavor, added to the line in January 2003, became the first SUV ever produced in Normal and represented the initial product coming to market under Mitsubishi Motors' Project America initiative to design and engineer vehicles in North America, specifically for the North American market. Endeavor was followed in September 2003 by production of an all-new Mitsubishi Galant built on the same Project America platform.

Representing a truly integrated manufacturing facility, Mitsubishi Motors stamps most major body panels and manufactures most bumper fascias in-house ensuring quality in build. The five shops in operation are: Stamping, Plastics, Body, Paint and Trim/Final Assembly.

The Manufacturing Division plant currently employs approximately 2,000 people and acts as an economic catalyst for the Central Illinois community, contributing about $320 million to the local economy in taxes, salaries and benefits in 2003. United Auto Workers Local 2488 represents Production and Maintenance Associates.

The Mitsubishi Motors manufacturing facility in Normal holds the distinction of having both ISO 14001 environmental and ISO 9002 quality certifications - a benchmark shared by fewer than five percent of manufacturing companies in the world.

HISTORY

Mitsubishi Motors' manufacturing operation began as Diamond-Star Motors in a 50/50 joint venture between Mitsubishi Motors Corporation (MMC), Japan, and Chrysler Corporation (now DaimlerChrysler), in the fall of 1985. The plant was completed in 1988 when the first cars rolled off the assembly line. In 1991, MMC purchased Chrysler's 50 percent share and established it solely as a Mitsubishi company and the plant became a subsidiary of MMC.

To better identify Mitsubishi Motors' presence in the U.S. marketplace, the plant assumed the name Mitsubishi Motor Manufacturing of America, Inc. (MMMA) on July 1, 1995. All North American operations were consolidated in January 2001 into Mitsubishi Motors North America and on January 1, 2002 MMMA was renamed MMNA Manufacturing Division. The Normal facility represents Mitsubishi Motors' only passenger car assembly plant in North America.

In October 1995, the plant celebrated production of its one-millionth vehicle - which was the first Mitsubishi Eclipse Spyder convertible - and the tenth anniversary of incorporation. The two-millionth vehicle was produced in February 2001.

MISSION STATEMENT

As part of Mitsubishi Motors' commitment to maintaining a model workplace, nearly all manufacturing employees participated in the creation of a corporate mission statement. Adopted by the Board in June 1997, the Mission Statement says: "Mitsubishi Motors builds world class vehicles. We achieve the highest level of quality through effective teamwork and by practicing unwavering commitment to each other, our products, customers and the community.

  • We demonstrate character in action by accepting responsibility to treat each other with honesty, fairness and respect.
  • We believe that proactive self-initiative is the driving force that produces continuous improvement.
  • We will create together our long-term success to benefit each other, our families and other stakeholders by living our values and achieving our mission."

QUALITY EMPHASIS

In 2000, Mitsubishi Motors established cross-functional Variability Reduction Teams, divided among twelve areas of the vehicle to improve customer satisfaction and warranty costs through the reduction of variability in the build. In November 1999, Mitsubishi Motors received ISO 9002 certification, a global quality process standard. In 1999, building off the mission statement, the company adopted as its quality policy: "Build World Class Vehicles for Customer Satisfaction."

Since its introduction for the 1990 model year, the Eclipse has won more than 25 national vehicle awards. In 2000, the Dodge Avenger - built by Mitsubishi Motors - received a Bronze Award for Quality from J. D. Power. In 2003, the Chrysler Sebring coupe received a Silver Award and the Dodge Stratus coupe received a Bronze Award. In 2004, the Dodge Stratus coupe received a Gold Award and the Mitsubishi Galant sedan received a Bronze Award.

PRODUCTION HISTORY

Total annual production for all vehicles built by Mitsubishi Motors in North America is listed below:

1988- 2,409 1996- 192,961
1989- 90,741 1997- 189,086
1990- 148,379 1998- 157,139
1991- 153,936 1999- 161,844
1992- 139,783 2000- 222,036
1993- 136,035 2001- 193,435
1994- 169,829 2002- 202,352
1995- 218,161 2003- 173,699

Total Production 1988-2003: 2,551,825

Vehicles built by Mitsubishi Motors in North America have been exported to 16 countries and territories including Guam, Canada, Netherlands, Spain, Switzerland, Argentina, Sweden, Portugal, Germany, Austria, Italy, Brazil, Puerto Rico, Japan, Mexico and Taiwan.

SUPPLIERS

In 2003, MMNA Manufacturing Division spent nearly $1.7 billion on production parts from approximately 250 North American suppliers. Of that number, $545 million constituted purchases from 50 Illinois suppliers.

The MMNA Manufacturing Division spent more than $75 million on raw materials in 2003 with approximately $2 million representing purchases from Illinois suppliers.

Believing a quality supplier base can only be achieved through diversity, Mitsubishi Motors established a Supplier Diversity Program in October 1996. This
program is successfully enhancing opportunities for business enterprises owned by
minorities and women.

ENVIRONMENT

In April 2001, Mitsubishi Motors' Environmental Management system was certified as conforming to the ISO 14001 international standard. Less than five percent of manufacturing companies in the world share with Mitsubishi Motors the distinction of having both ISO 14001 environmental and ISO 9002 quality certifications. The Environmental Policy, revised in January 2000 as part of ISO 14001 preparation says:

"Mitsubishi Motors is committed to managing resources to protect the environment, the surrounding community and the health and safety of employees. Our processes, operations, services and activities are conducted in a manner consistent with sound management practices to provide responsible protection and preservation of the environment."

Among the highlights of recent environmental initiatives at the manufacturing facility:

  • All six models currently produced by Mitsubishi Motors in North America, as well as the all-new Mitsubishi Galant, use fully recyclable polypropylene plastic bumper fascia.
  • In July 1999, Mitsubishi Motors' plant was one of the first in the U.S. to introduce a lead-free (EDP) base coast for automobile bodies.
  • Volatile Organic Chemical (VOC) emissions in 2003 were 68 percent below EPA permitted levels and 15 percent below 1998 levels.
  • From 1998 to 2003, waste reduction efforts decreased general trash disposal by 35 percent.
  • Painting equipment has been upgraded to improve transfer efficiency, reduce paint usage and reduce solvent use and waste during color changes.
  • The Mitsubishi Motors' Prairie Restoration Project partnership with the Illinois Department of Natural Resources is restoring 3.1 acres to Prairie grass and wildflowers.