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.
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.
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 ?
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