NEWS - Manufacturing

When Effingham County Commission chairman Dusty Zeigler opened his mouth recently and spilled the beans that one of Mitsubishi’s divisions was looking at the  at Interstate 16 and Interstate 95, Savannah economic development leaders groaned.  “They can’t keep their mouth closed over in Effingham,” said one.  And while no one in Chatham wants to be quoted, Savannah is definitely at the head of the list, with a decision hoped for by the end of the year, according to sources of the SBJ.  “It’s Savannah’s to lose,” according to a top official.

Mitsubishi, a diverse and growing company, recently reported a third quarter loss of $211 million, selling half as many cars in the United States as it did a year ago, but is working aggressively to develop future environmentally friendly models.  But building cars is only one aspect of the Mitsubishi and an auto plant does not appear to be the focus of the interest in Savannah.

Bloomberg News reported last week that Mitsubishi Heavy Industries Ltd., Japan’s biggest heavy-equipment maker, plans to build a wind-power generator assembly plant in the U.S. or Canada to benefit from President Barack Obama’s push for cleaner energy. Mitsubishi Power Systems, Inc. is a division of that entity, and is the division identified as looking at the megasite.

“The proposed plant may cost as much as $105 million, and annually produce equipment capable of generating 600 megawatts of electricity,” stated Bloomberg News. The automaker’s Mitsubishi Electric Corporation division announced plans last year to build a new plant in Asia for the development of photovoltaic (PV) cell production for future electric cars.

While Savannah has long hoped for an auto plant, with such plants come problems, including closures and auto unions. In October 2008, Just-Auto.com reported on Mitsubishi’s agreement with the United Auto Workers to continue to operate a plant in Normal, Ill. at least until the end of August 2012, after a deal was agreed with a local union.

Mitsubishi Motors North America (MMNA) said at the time that the United Auto Workers (UAW) Local branch 2488 members had ratified an agreement that "dramatically improves the ability of the company's Normal, Illinois assembly plant to be a key player in the global success of Mitsubishi Motors."
The agreement includes provisions guaranteeing that production will continue at the plant to the end of August 2012. The pact also provided job security for more than 1,200 current UAW workers to the end of the agreement period.

At the time, MMNA Manufacturing president & CEO, Shiro Futaki, said that, "For our customers and dealers, the agreement underscores in no uncertain terms that Mitsubishi Motors is committed to being competitive and successful in the U.S. market,” in a prepared statement.