What to Do with Normal: Mitsubishi Needs to Up Plant Production to Stave Losses

What would you do if you had a manufacturing plant capable of producing 240,000 widgets per year but were only outputting

80,000 with a breakeven point of 100,000, and therefore losing money every day?

To Mitsubishi, its widgets being the midsize Galant sedan, Endeavor crossover SUV, and Eclipse sports coupe and Spyder convertible, closing down its Normal, Illinois facility is not an option. The Japanese company is feeling the pinch from slower midsize sales as well as the recent economic downturn, but having just extended its UAW labor deal another four years it would be too expensive to shutter.

A number of solutions come to mind, the first being to coop with another automaker to build their vehicles, much like how Subaru has opened up its Legacy/Outback plant to build Toyota Camrys. It was initially thought that Mitsubishi would get midsize business from Chrysler group for its Sebring and Avenger models, but we all know how that turned out, with then DaimlerChrysler dropping Mitsubishi like last night's fling and later left with a new

Sebring and Avenger it can't sell in any great volumes anyway. The problem with this scenario is that there aren't any automakers struggling to keep up to demand with their midsize segment offerings right now, which only leaves one possible solution. Recalibrate the plant for higher volume vehicles and start exporting.

Mitsubishi CEO Osamu Masuko told Automotive News that Mitsubishi could possibly switch up the vehicles produced in Normal, eyeing models that “can be sold on the global market.” It would only make sense for the Lancer and Outlander to be built in Normal, as they're number one and two in US sales for the brand, with excess volumes targeting other global markets.

There is one additional alternative Masuko never brought up, however, and that's to build midsize models that scoop up the market in the same kind of whirlwind

as its recently revamped Lancer and Outlander did. While excellent drivers and great values, the Galant has never been a big seller, while the Endeavor has been the market's best kept crossover secret, driving like a sports sedan while hauling more than a wagon. The Eclipse has done well, for a niche player, but you can't keep a plant running on the backs of sports coupes and limited volume convertibles.

Mitsubishi showed a concept earlier this year, being displayed once again at the Sao Paulo Motor Show in Brazil this week, which could turn its fortunes around in the midsize sedan market. After all, styling sells, proven by Mitsubishi's own hot-selling compact models, and together with high quality interiors and alternative powertrains, something like the ZT Concept could really turn the market upside down.

Not to

put a downer on the possibilities for a real live ZT, or its possible for Normal, Illinois production, the reality of today's economic situation might mean a band aid approach is more likely.

Masuko also told Automotive News that he would like to see the Triton pickup, a model sold in more than 100 countries, was available in the North American market. A true compact pickup, the Triton is ultimately fuel efficient in diesel form and extremely well made with an upscale interior. Sold as the Mighty Max here generations ago, it garnered a faithful following. While the idea seems smart in the wake of the highest fuel prices we've ever experienced and a need for more compact, fuel friendly work vehicles, Mitsubishi's North American operations won't be importing it anytime soon, and wouldn't say why. Most likely, similarly to the award-winning Colt subcompact, it doesn't meet federal regulations.