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Mitsubishi Motors Mizushima Plant Fears Nissan Head’s Cost-Cutting Ways

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Carlos Ghosn

Mitsubishi Motors’ Mizushima plant is worried Nissan’s Carlos Ghosn may cut it

In April of this year, Mitsubishi Motors surprised people around the globe when it was revealed that it had improperly tested the fuel economy performance in four minicar models. This fuel economy scandal, which thankfully didn’t touch Mitsubishi’s United States lineup, caused Mitsubishi stock shares to dip dangerously. Finally, after much hubbub, Nissan Motor Co.’s Chief Executive Carlos Ghosn announced that his company would take over a 34% share of Mitsubishi Motors as part of strategic partnership.

And now, Mitsubishi Motors is scared.

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In a recent report from Bloomberg, it was revealed that Mizushima, an industrial town in Japan that is home to Mitsubishi’s first assembly plant, is worried about the future with Ghosn as the Mitsubishi brand’s head.

It’s no secret that Ghosn is known as a brutal cost-cutter, turning around a variety of brands for the better. In fact, he is so frugal and ruthless with his cuts that he has earned the nickname “Le Cost Killer.” When Ghosn took over the Nissan brand, he pushed for big changes, even abandoning entire plants to focus on increasing Nissan’s profit—and that is exactly what the residents of Mizushima are worried about, too.

“We know the case of small towns abandoned by Nissan when Ghosn came in, and that is the worst scenario—lots of unemployed in the street,” said Yoshitaka Fujii.

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The town is already being affected by Mitsubishi’s scandal. Earlier this year, a shop where Mitsubishi-related factory workers bought their uniforms shut down. Other businesses are also closing their doors, leaving the town to feel more abandoned than before.

Hopefully, though, rather than cutting such a significant plant, Carlos Ghosn will instead see its promise and continue to use it as a Mitsubishi manufacturer as the brand flourishes under his reign.

News Source: Bloomberg