Mitsubishi Plans Job Cuts In Thailand

Mitsubishi Motors plans to minimize its workforce in Thailand as the automaker cuts its production in response to the coronavirus pandemic.

Mitsubishi Motors told plant staff of the early retirement offer that had been announced on Wednesday, May 7. The organization gave severance packages equal to 8 to 35 months of salaries, depending on the employee’s age and seniority.

The firm, which last month received $ 2.8 billion in bank funding as a hedge against a sales slump, has not set a numerical target for job cuts.

Mitsubishi produces around 400,000 vehicles a year in Thailand, leaving it behind only Toyota Motor in terms of production, and will be closely watched as a potential precedent for other car manufacturers in the Southeast Asian region.

Mitsubishi exports vehicles from Thailand to over 100 countries. However, sales in the country decreased to around 17,000 vehicles in the first quarter of 2020 by around 30 percent per year. In March, when the nation declared a state of emergency, revenues dropped by around 50 percent.

In April, Mitsubishi idled production, with plans to resume Monday after the government relaxed restrictions on business activities. Nevertheless, the company expects that the sales slump will persist due to the diminished buying power of consumers.

SOURCE: Nikkei Asian review

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