By Bill Koenig
Sept. 17 (Bloomberg) -- Mitsubishi Motors Corp. said it will resume talks with the United Auto Workers union Sept. 24 on a contract at the Japanese company's only U.S. plant.
The automaker disclosed the negotiating session for the Normal, Illinois, factory in an e-mail by spokesman Dan Irvin. Mitsubishi didn't comment on issues in the talks, last held Sept. 6. Work at the plant has continued since the previous contract with the UAW expired Sept. 5.
Mitsubishi and the Detroit-based union haven't been able to reach an accord as the company's U.S. sales have declined, putting pressure on the fifth-largest Japanese automaker to trim costs. The UAW may have to accept job cuts or lower wages in a new contract, analysts have said. Tokyo-based Mitsubishi has said it isn't considering closing the Illinois factory.
UAW spokesman Roger Kerson didn't immediately respond to a telephone message seeking a comment, The union represents 1,250 employees at the plant. Employment at the facility has fallen 63 percent from 2003, reflecting the company's 63 percent slide in U.S. vehicle sales since 2002.
Mitsubishi's U.S. sales dropped 22 percent this year through August. The company said on July 29 that it probably would post a loss in the quarter that ends Sept. 30, citing faster-than- expected sales declines in the U.S., Europe and Japan.
The Normal factory originally was a joint venture with the former Chrysler Corp., which sold its share to Mitsubishi in 1991. The plant operates on one daily shift and makes Galant sedans, Endeavor sport-utility vehicles, Eclipse coupes and Spyder convertibles.
To contact the reporter on this story: Bill Koenig in Southfield, Michigan, at wkoenig@bloomberg.net
Last Updated: September 17, 2008 11:34 EDT
HOME
