Ah, Tennessee. Smoky Mountains, Nashville, moonshine, and now Mitsubishi. Mitsubishi, which has called California home since it decided to make the full jump into the American market back in 1988, is moving closer to sister company Nissan.
The move is said to bring about 200 jobs to Tennessee and also signals that Mitsubishi is staying in the U.S. market, rather …
Interesting. Didn't realize they were related to Nissan. I would've guessed if I heard they were moving their headquarters, it would be to abandon the North American market all together, not relocate within the US.
200 jobs? Does Mistubishi even sell 200 cars per year here? Well, I guess if you can't get financing anywhere and need a new car Mitsu is happy to sell you a Mirage...or if you're really wanting to go into debt they'll sell you a...cough, cough...Eclipsecross.
Yeah, not sure what the endgame is here, but maybe we'll see some Renaults rebadged as Mitsubishis?
I'm willing to endure whatever it takes for Mitsubishi to get to a place where they can make the next Lancer Evo. So if that means a few years of re-baged Nissans and Renaults, I'm all for it.
If those 200 jobs were then paid on average $30,000 less per year then Mitsu would save 6 million dollars per year.
Mitsu is investing $18 million or a 3 year payback on just salary. Additionally savings from cheaper property and cheaper taxes.
Klayfish said:200 jobs? Does Mistubishi even sell 200 cars per year here? Well, I guess if you can't get financing anywhere and need a new car Mitsu is happy to sell you a Mirage...or if you're really wanting to go into debt they'll sell you a...cough, cough...Eclipsecross.
Mitsubishi sales have actually been on a steady climb since they bottomed out in 2013 or 2014. I know I see more new Outlanders, Mirages and Eclipsecross running around my city every day. My friend bought a Mirage and I've driven it. It wouldn't be my first choice, but for $13k it has a warranty, backup camera, a solid radio and gets 42mpg frequently. It seems pretty decently screwed together too, no rattles or things falling off.
John Welsh said:If those 200 jobs were then paid on average $30,000 less per year then Mitsu would save 6 million dollars per year.
Mitsu is investing $18 million or a 3 year payback on just salary. Additionally savings from cheaper property and cheaper taxes.
Yes. this does seem like a cost-saving measure; even if the jobs don't pay substantially less, the real estate is definitely going to be cheaper in Tennessee. A cost-cutting move could either be less commitment to the North American market, or a "when sales get moving, we'll be able to expand our HQ for less money" measure, but it seems mostly like cost-cutting either way.
The locals call em “mitsabitchies”.
In reply to NickD :
I lost my interest in the mirage when I found out all you could get is a 74 hp three pot. That's less than the base model mirage I learned in, and it's probably not anywhere near as fun.
ummmm what car company is left in California now ?
Tesla and some startups ?
californiamilleghia said:ummmm what car company is left in California now ?
Tesla and some startups ?
Honda.
Grizz said:In reply to NickD :
I lost my interest in the mirage when I found out all you could get is a 74 hp three pot. That's less than the base model mirage I learned in, and it's probably not anywhere near as fun.
I had one as a rental 2.5 years ago when I had my accident in my BRZ. For a weeks I was still commuting 220 miles a day because my apartment wasn't available.
Getting passed by semi's on the turnpike in that thing was fun, so was the 57 sec 0-60 time.
David S. Wallens said:californiamilleghia said:ummmm what car company is left in California now ?
Tesla and some startups ?
Honda.
oops forgot about them , its not far from here , but not a street I normally go on ....
Toyota was right off the freeway as was the Nissian building ,
ohhh and I think Mazda is still here......
MadScientistMatt said:John Welsh said:If those 200 jobs were then paid on average $30,000 less per year then Mitsu would save 6 million dollars per year.
Mitsu is investing $18 million or a 3 year payback on just salary. Additionally savings from cheaper property and cheaper taxes.
Yes. this does seem like a cost-saving measure; even if the jobs don't pay substantially less, the real estate is definitely going to be cheaper in Tennessee. A cost-cutting move could either be less commitment to the North American market, or a "when sales get moving, we'll be able to expand our HQ for less money" measure, but it seems mostly like cost-cutting either way.
There's also the potential savings of not having to deal with your parent company being HQ'd 2 time zones and 2000 miles away. Not having to deal with a bunch of cross country flights, rental cars and hotels can add up. Less unproductive time too in theory. Even things like scheduling conference calls will be easier.
David S. Wallens said:californiamilleghia said:ummmm what car company is left in California now ?
Tesla and some startups ?
Honda.
Kia and Hyundai as well.
Toyman01 said:In other Mitsubishi news.
FBI agents raided Hoover Mitsubishi
This was on my FB feed this morning.
Well, that sucks.
I'm here all week! Don't try the veal, the chef's on vacation.
In reply to Jordan Rimpela :
How bad does your credit have to be that you need a MITSUBISHI dealer to doctor a loan to get you a car. I was reasonably sure as long as your track marks weren't fresh they'd approve you.
MadScientistMatt said:John Welsh said:If those 200 jobs were then paid on average $30,000 less per year then Mitsu would save 6 million dollars per year.
Mitsu is investing $18 million or a 3 year payback on just salary. Additionally savings from cheaper property and cheaper taxes.
Yes. this does seem like a cost-saving measure; even if the jobs don't pay substantially less, the real estate is definitely going to be cheaper in Tennessee. A cost-cutting move could either be less commitment to the North American market, or a "when sales get moving, we'll be able to expand our HQ for less money" measure, but it seems mostly like cost-cutting either way.
Photos of the new Mitsubishi HQ have been released:
In reply to Furious_E :
Lmfao! In the words of Toby Keith “there’s always something going on down in the trailer hood”
In reply to californiamilleghia :
They don't do any mfg'ing there, but Hyundai USA & Mazda USA are in Orange County.
What took them so long?
I visited my dad last week in CA. I grew up there, but I live in TN now.
He had to pay over $130 to register his CRX for the year (cost based on value). I pay $27 to register any vehicle, regardless of value.
He had to pay $68 for smog testing. I pay $9 for smog testing, which is only required in 5 TN counties anyway, and may be going away altogether.
When I moved out here, I sold a <850 sqf house on ~1/9 acre for nearly $400k. I bought a 1600 sqf house on 1 1/3 acres here for under $160k.
TN has no state income tax.
I can't speak to the specifics of business taxes, but I'm 100% certain they're lower in TN than in CA.
I miss a lot about CA, and I'm not trying to bash it. But it's getting harder and harder to afford to live there.
In reply to Will :
I agree. I am in Oregon, but I’m from southern Illinois. And while it was super expensive to move here to the West Coast, my wife and I are looking to sell our house now and then buy something nice somewhere else for less. Central Oregon in particular is very expensive to live
I always hope these automakers will go back to doing shenanigans. I saw a GVR4 AMG (!) and I was thinking to myself- " You know..... Mitsubishi used to make ALL the fun cars. Galant turbo, mirage turbo, eclipse turbo, 3kgt.... And now? We hock mirages to those that can't afford a kia and EclipseCROSSes to people who think Nissan Rogues are too exciting.
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