Mitsubishi Motors is considering building vehicles in Myanmar, as the Japanese automaker deepens its commitment to Southeast Asia.
The Japanese automaker already has a production base in Vietnam, as well as in Thailand, Indonesia and the Philippines. Another Vietnamese plant is also under consideration. The plan is to add Myanmar to the list.
Operations in Europe and other key regions will be scaled back through workforce reductions. Combined with hiring curbs and a review of the compensation system, the automaker aims to slash labor costs on the administrative side by 15% by the end of fiscal 2021 from fiscal 2019.
Chief Executive Officer, Takao Kato said his company hopes to “collaborate” with Mitsubishi Corp., the trading house that owns a 20% stake in the automaker and is well-versed in the local market.
Details, such as the timing and the form of the business, have yet to be decided.
Mitsubishi Motors reversed its drive for broader expansion to focus instead on the 10-member Association of Southeast Asian Nations under a medium-term plan released late last month.
Mitsubishi Motors is grappling with the fallout from the expansion promoted by disgraced former Chairman Carlos Ghosn, who doubled as chairman of large shareholder Nissan Motor.
