Jan 15th - Mitsubishi Motors Targets Brazil, India As Part Of Global Revamp

Mitsubishi Motors Corp. will streamline production in developed nations while increasing output in emerging markets including Brazil and India under a retooled global strategy,

By redistributing business resources, the automaker aims to quickly lift global production to 1.5 million units, up 50% from fiscal 2009.

Mitsubishi Motors plans to spend an estimated 20-30 billion yen to obtain a stake of at least 50% in MMC Automotores do Brasil SA, a firm that currently handles its production in Brazil. The Brazilian firm's facilities will be expanded in fiscal 2011, with annual production capacity of four-wheel-drive vehicles and other cars to be doubled to at least 100,000 units.

A plant in Illinois will turn out the Outlander sport utility vehicle.

The automaker also plans to launch output in India. It is considering taking a stake in a firm to which it outsources production, while also exploring a joint venture in India with France's PSA Peugeot Citroen SA, which is eyeing a foray there. Mitsubishi Motors aims to manufacture low-priced vehicles based on minicars jointly developed with Nissan Motor Co.

Meanwhile, it will end production of vehicles tailored to the local market in Europe and the U.S. It will wind down by fiscal 2013 production of three North American models, including the Eclipse and the Endeavor, which are currently manufactured at a plant in the U.S. state of Illinois. Instead, the plant will produce the Outlander sport utility vehicle and other models designated as global strategic vehicles.

At the same time, Netherlands Car BV will end production of the European model Colt subcompact next year. Mitsubishi Motors has already frozen development of a next-generation Colt for Europe and will scale back production of finished vehicles starting in 2013.

Mitsubishi Motors will also overhaul domestic production, especially of minicars sold only in Japan. It will halt development of the Pajero Mini and other minicars currently manufactured at its Mizushima plant in Okayama Prefecture. Instead, the facility will churn out new models jointly developed through a tie-up with Nissan. The Nagoya plant will also scale back production of the Colt.