Mitsubishi Cuts Jobs In Normal, Illinois

Mitsubishi Motors Corp. says it will lay off 1,200 workers this fall at its only U.S. plant, trimming car production as part of a worldwide revival plan the automaker hopes will pare mounting debts.

The Japanese automaker, battling losses from bad credit and recall scandals, said Wednesday that production will be cut from two shifts to one in October at the Normal plant, which now has more than 3,100 workers.

Finbarr O'Neill, chairman and chief executive officer of Mitsubishi Motors North America, said production had to be adjusted as the company tries to rebuild sales that have dipped nearly 27 percent in the U.S. for the first six months of 2004.

Rich Gilligan, president and chief operating officer of MMNA's Manufacturing Division, said in a statement: "This was a very difficult decision, but we believe it is necessary for the long-term success of the company."

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