Mitsubishi North America is Moving to Tennessee

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 than leaving it.

 

Read the press release below.

 

NASHVILLE, Tenn. – Tennessee Gov. Bill Lee, Department of Economic and Community Development Commissioner Bob Rolfe and Mitsubishi Motors North America officials announced today that the automaker will relocate its headquarters to Franklin, Tenn. from Cypress, Calif.

Mitsubishi Motors’ move represents an investment in the county of $18.25 million and brings approximately 200 jobs to Williamson County.

Since 1988, Mitsubishi Motors North America has been rooted in California. The relocation to Franklin will begin in August and be completed by the end of 2019. All departments will be relocating, including sales, marketing, IT, human resources, communications, parts and services, product planning, dealer operations, finance and legal.

Initially, Mitsubishi Motors will transfer operations to a temporary office in Franklin. Beyond that, the company is working with commercial real estate firm Jones Lang LaSalle to identify permanent offices.

The move is part of an ongoing plan to reinvent every aspect of Mitsubishi Motors in the U.S., from corporate leadership to dealer partners to every touchpoint in a customer’s relationship. It will sharpen the company’s focus on future growth and innovation.

Mitsubishi Motors’ move highlights efforts taken across the Renault-Nissan-Mitsubishi Alliance to bring the companies closer together in key areas, including procurement, development and cost efficiencies. The choice of Franklin brings Mitsubishi Motors closer to its sister company, Nissan, which has its North American headquarters in Williamson County.

Since 2013, headquarters jobs have grown by 37 percent in Tennessee, the fastest rate of growth among states in the Southeast.

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T.J.
T.J. MegaDork
6/26/19 9:01 a.m.

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.

 

Klayfish
Klayfish PowerDork
6/26/19 9:04 a.m.

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.

Jordan Rimpela
Jordan Rimpela Digital Editor
6/26/19 9:18 a.m.

Yeah, not sure what the endgame is here, but maybe we'll see some Renaults rebadged as Mitsubishis?

Colin Wood
Colin Wood Intern
6/26/19 9:46 a.m.

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.

John Welsh
John Welsh Mod Squad
6/26/19 11:13 a.m.

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. 

NickD
NickD PowerDork
6/26/19 11:30 a.m.
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.

MadScientistMatt
MadScientistMatt PowerDork
6/26/19 11:35 a.m.
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.

_
_ HalfDork
6/26/19 11:36 a.m.

The locals call em “mitsabitchies”. 

Grizz
Grizz UberDork
6/26/19 12:08 p.m.

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.

californiamilleghia
californiamilleghia HalfDork
6/26/19 12:44 p.m.

ummmm what car company is left in California now ?

Tesla  and some startups ?

 

David S. Wallens
David S. Wallens Editorial Director
6/26/19 12:52 p.m.
californiamilleghia said:

ummmm what car company is left in California now ?

Tesla  and some startups ?

 

Honda. 

z31maniac
z31maniac MegaDork
6/26/19 12:55 p.m.
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.

californiamilleghia
californiamilleghia HalfDork
6/26/19 1:07 p.m.
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......

STM317
STM317 UltraDork
6/26/19 1:29 p.m.
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.

logdog
logdog UltraDork
6/26/19 1:43 p.m.
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
Toyman01 MegaDork
6/26/19 1:49 p.m.

In other Mitsubishi news.

FBI agents raided Hoover Mitsubishi

This was on my FB feed this morning. 

 

Jordan Rimpela
Jordan Rimpela Digital Editor
6/26/19 4:00 p.m.
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.

Mndsm
Mndsm MegaDork
6/26/19 4:50 p.m.

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. 

Furious_E
Furious_E UltraDork
6/26/19 5:23 p.m.
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:

_
_ HalfDork
6/26/19 5:32 p.m.

In reply to Furious_E :

Lmfao! In the words of Toby Keith “there’s always something going on down in the trailer hood”

cdeforrest
cdeforrest New Reader
6/26/19 6:02 p.m.

In reply to californiamilleghia :

They don't do any mfg'ing there, but Hyundai USA & Mazda USA are in Orange County.

Will
Will UltraDork
6/26/19 6:03 p.m.

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.

_
_ HalfDork
6/26/19 6:12 p.m.

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

Mndsm
Mndsm MegaDork
6/26/19 6:31 p.m.

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. 

Daylan C
Daylan C UberDork
6/26/19 6:35 p.m.

I would be entirely ok with Clio or Megane RSs badged as Mitsus. Just saying.

DWNSHFT
DWNSHFT Dork
6/26/19 8:49 p.m.

I had to Wiki "Renault-Nissan-Mitsubishi Alliance."  I hadn't heard that they had bought Mitsubishi.

Vigo
Vigo MegaDork
6/26/19 10:18 p.m.

Interesting. Didn't realize they were related to Nissan.Interesting. Didn't realize they were related to Nissan.

Yeah, Mr. Ghosn made advances, was rebuffed, leaked some E36 M3 that temporarily tanked their stock value, and bought them before the values rebounded. And then went to prison for white collar crimes. Not for that, though! 

cdeforrest
cdeforrest New Reader
6/26/19 10:25 p.m.

Considering Ghosns out mostly because Japan didn’t want Renault aka French Govt taking control of Nissan, and the Alliance (no not the car!) is in peril, I don’t expect to see any Renaults stateside. Too bad - that new Alpine is sweeet

ddavidv
ddavidv PowerDork
6/27/19 7:25 a.m.

Mitsubishi is still here? Who knew?

nutherjrfan
nutherjrfan UltraDork
6/27/19 9:33 a.m.

Wasn't Mitsubishi known for more than cars?  Or did that change a while back?  Mitsubishi heavy industries? 

John Welsh
John Welsh Mod Squad
6/27/19 10:10 a.m.

The press release specifically refers to Mitsubishi Motors.  Yes, there are other parts of Mitsubishi but this only has to do with the HQ for cars in North America.  

nutherjrfan
nutherjrfan UltraDork
6/27/19 10:21 a.m.

In reply to John Welsh :

so did Nissan buy only the car division or did it get the TVs too? smiley

_
_ HalfDork
6/27/19 12:46 p.m.
nutherjrfan said:

Wasn't Mitsubishi known for more than cars?  Or did that change a while back?  Mitsubishi heavy industries? 

My man, it’s about aliens. Subaru uses the Pleiades. And Mitsubishi is diamond “star” motors, the diamond symbol is a rhombus. A quadrilateral. Each company (before being involved in automotive) was developing aeronautical and warplanes. (Subaru is part of Fuji heavy industries. Even Polaris is part of that corporation. Polaris is a star!). 

Mitsubishi heavy industries is the rival intergalactic company to Fuji heavy industries, A.k.a. Subaru. Basically, a long time ago two planets, that we have never heard of, decided to have a war. But, being superior intellectual beings, they decided not to hold a war that would kill off many innocent people on both sides. So, to settle the war, they both agreed to hold a contest of speed in the world rally championships on earth. This race would test so much, given the physics of earth, and the under 2.0L ruleset. For years, they went back and forth, the evo 1-9. The sti mk1-??? Then, in 2009, a change in the struggle for dominance occurred. The evo 10 couldn't keep pace with the new STI. Subaru had won the intergalactic war. Now, today, Subaru has retired from trying, and simply cranks out crap. While Mitsubishi has retreated into the darkness.... Is the war over? No one knows...

I want to thank anybody that has made it this far. 

Grizz
Grizz UberDork
6/27/19 1:04 p.m.
nutherjrfan said:

Wasn't Mitsubishi known for more than cars?  Or did that change a while back?  Mitsubishi heavy industries? 

The other stuff Mitsubishi makes doesn't suffer from the same quality as their cars thankfully. Most of the stuff Mitsu heavy cranks out is really good.

nutherjrfan
nutherjrfan UltraDork
6/27/19 1:33 p.m.

In reply to _ :

ah.  Kinda like Aldi and Lidl. laugh

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