Mitsubishi to Cut Jobs at U.S. Unit

Mitsubishi Motors Corp. said Tuesday that it was eliminating about 200 jobs at its U.S. unit -- mostly in Southern California -- as part of an effort to revive flagging sales.

The move comes one day after announcing the departure of the president of its North American sales company.

Most of the cuts will take place at Mitsubishi Motors North America in Cypress, said Nancy Carollo, a spokeswoman for the fourth-biggest Japanese automaker. The cuts are mainly in sales and marketing and the consumer-credit unit.

Tokyo-based Mitsubishi had about 1,000 employees in Cypress before the announcement.

Mitsubishi’s U.S. sales have fallen 24% in 2003, the largest drop among major brands. The company is struggling to revamp operations in the world’s biggest auto market after a jump in loan defaults by customers with spotty credit in the late 1990s.

The maker of the Galant sedan also said Tuesday that November U.S. sales fell 39% from a year ago to 16,910 cars and trucks.

“It’ll take time for Mitsubishi to get back to doing well in the U.S.,” said Yoshio Inamura, who helps manage about $335 million at Tokyo-Mitsubishi Asset Management Co. “They’re in the middle of changing fundamental structure in the U.S. after having the default problem in the U.S.”

Mitsubishi’s shares fell 1.3% to $2.08 in Tokyo Stock Exchange composite trading.

Greg O’Neill, president of the North American sales unit, said Monday that he planned to leave the company Dec. 31. A replacement hasn’t been named, Carollo said.

In September, Mitsubishi Motors North America replaced Chief Executive Pierre Gagnon with Finbarr O’Neill, who helped quadruple U.S. sales for Hyundai Motor Co., South Korea’s biggest automaker, from 1998 to 2002.

In October, the new executive scrapped a $200-million plan to expand Mitsubishi’s sole U.S. factory in Normal, Ill., while the U.S. unit changes senior management.

DaimlerChrysler owns 37% of Mitsubishi Motors.