Mitsubishi to Combine Its U.S. Units

Mitsubishi Motors Corp. is consolidating its four U.S. business units by year-end to save money and better compete with larger auto makers. The main business, Cypress-based Mitsubishi Motors America Inc., will absorb support functions for Mitsubishi’s sales, manufacturing and research units. A new North American operations committee will oversee engineering, manufacturing and marketing. The changes come as the Japanese auto maker’s U.S. sales are rising while its employment declines. Sales for the first five months of this year rose about a third to 124,423 from the year-earlier period. Mitsubishi, which has cut its U.S. employment by 1,000 jobs to 4,600 since November 1998, says the latest move won’t lead to further job reductions. Mitsubishi Motors America is based in Southfield, Mich., and Mitsubishi Motors Research and Development is based in Ann Arbor, Mich. Mitsubishi Motor Manufacturing will remain in Normal, Ill., where the company builds the Mitsubishi Galant, Eclipse and Eclipse Spyder, as well as the Dodge Avenger for DaimlerChrysler.