Mitsubishi to transfer part of Japanese production to Brazil
Folha de S. Paulo - 02/26/2009
Japanese car maker Mitsubishi will transfer part of the production to Brazil in order to reduce the impact of the strengthening of the Yen in the costs its production, as informed the economic newspaper "Nikkei". The objective is to install its export base for all Latin America in Brazil, mainly because Brazilian exports have privileges in the region due to the Mercosur and the commercial agreement with Mexico. According to the Efe agency, Mitsubishi plans on transferring part of the national production of vehicles to MMC Automotores, which represents the company in Brazil, in the 2009 financial year, which starts in April. The unit of production is located in the city of Catalão (GO). The Japanese maker will still decide which models it will produce in the country. The sport utility vehicle Pajero is one of the most likely to being produced. It is one of the best selling vehicles of the brand in the Brazilian market together with the L200 pickup truck. Only in January, Mitsubishi sold 2,630 vehicles, between cars and light commercial vehicles. The company also plans on increasing its production in Brazil progressively, until it reaches 50 thousand annual vehicles, using chassis, engines and other parts made in Japan. Another Asian maker, however, the Korean Hyundai, announced in January the postponement of the plans for building a US$ 600 million plant in Brazil.