MMC Says No Immediate Plans to Shutter Adelaide

Mitsubishi Motor Corp. says there are no plans "at this moment" to end production at its Australian division's unprofitable vehicle assembly plant in South Australia.

The statement comes in response to media reports Mitsubishi Motors Australia Ltd. intends to shutter its Adelaide facility as early as December.

The spokesman admits the plant continues to lose money, despite having cut production to 50 cars a day in January, but declines to comment on how long Japanese management will allow Mitsubishi Australia to operate at a loss.

Mitsubishi Australia is looking to two yet-to-be-launched models – the Triton 1-ton pickup truck and Pajero SUV – to offset poor sales of the Australian-produced large 380 sedan.

The slow-selling 380 has received generous federal government subsidies under a scheme to bolster Australia's car-making industry from last year to 2015.

The auto maker now plans to produce between 15,000 and 20,000 units of the 380 this year.

Federal Industry Minister Ian Macfarlane confirms Mitsubishi Australia no longer qualifies for government grants because its production is below the threshold of 30,000 units annually. However, the government has granted the auto maker an exemption, citing "national interest."