Japanese automaker, Mitsubishi Motors Corp has announced that it expects second straight year of losses due to the Coronavirus Pandemic. This will be Mitsubishi’s biggest recorded loss in the last 18 years.
Japan’s sixth largest automaker is expecting an operating loss of 1.3 billion USD (140 billion Yen) for the year ending March 2021. The company is planning to reduce its workforce and production, and close unprofitable dealerships to cut 20% of fixed costs in two years.
Commenting on the current situation, Takeo Kato, Chief Executive, said, “To pave the way to recovery, the top priority of all executives is to share a sense of crisis with employees to execute cost reductions.”
The Japanese automaker is a part of Nissan-Renault Alliance. The company will also stop producing the popular Pajero SUV next year. Adding to it, Mitsubishi has also stated its intention to close down the plant that makes the Pajero SUV in Japan. The company is looking to reduce its presence in Europe and North America. In order to improve sales, the company is aiming to increase its footprints in Asia.
Adding to it, Mitsubishi will also use Renault-Nissan alliance to develop new products. The company is readying the next-gen Outlander, which will be based on the alliance’s CMF-C/D (Common Modular Family) platform. This is the same platform that underpins the Nissan Rogue/Qashqai, X-Trail, Renault Kadjar, Talisman and Koleos.
