Automotive Jobs in Illinois with Mitsubishi Cut
Posted on February 5, 2009
A large foreign car company is cutting hundreds of automotive jobs in Illinois.
Mitsubishi Motors, which is based in Japan, is planning to cut 300 Illinois jobs as the company plans to slip into the red during the current financial year because of weak sales and a strong yen. The company announced in November that it would cut 1,100 jobs by laying off one third of its temporary domestic workforce, according to an article by Google News.
The company’s plant in Illinois currently employs 1,600 workers, but that number will be reduced to 1,300 after the job cuts, some of which will come from voluntary retirements. Mitsubishi also is considering cutting production capacity at a Russian plant it’s building with PSA Peugeot-Citroen from the originally-estimated 160,000 vehicles per year.
Mitsubishi will most likely see a group net loss of about 20 billion yen, or 223 million dollars, for the year ending March 31. The company had a profit of 34.7 billion yen the previous year. The net loss would be Mitsubishi Motors’ first in three years, and numbers could get even worse depending on sales for the January through March quarter and weakening demand in Japan, North America and Russia.
The jobs cuts by Mitsubishi will only add to Illinois’ failing economy. During December 2008, the State of Illinois had an unemployment rate of 7.6 percent, up from 7.3 percent during November 2008 and higher than the national unemployment rate of 7.2 percent.
Illinois had a total non-farm employment of 5,885,800 workers during December, according to the United States Department of Labor Bureau of Labor Statistics. This is down from 5,921,800 workers during November and a 1.7 percent decrease from last year.