Mitsubishi to shed 9,500 jobs

Japanese carmaker MitsubishiMotors Corp is to cut its workforce by 9,500 jobs or 14 per cent, andclose one of its four production…

Japanese carmaker MitsubishiMotors Corp is to cut its workforce by 9,500 jobs or 14 per cent, andclose one of its four production plants, the company said this morning.

The company said it was also aiming to reduce production capacity by at least 20 percent and to achieve materials cost savings of 15 percent by 2003.

"The program will be a milestone in the history of MMC leading to an operating profit margin of 4.5 percent by 2003," said Mitsubishi's chief operating officer Mr Rolf Eckrodt.

The company is struggling to regain its reputation and market share following a recall scandal.

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The company confessed in August it had failed to inform the Ministry of Transport of at least 64,000 customer complaints about faulty vehicles since 1977.

AFP