Mitsubishi stops one production line at its main Japanese plant image

Mitsubishi Motors Corporation has announced it has stopped one of the four production lines at its main car plant in Japan since late November.

The facility in Okayama Prefecture now runs only three of its four production lines due to weak demand in Europe and falling profit on exports, as the Japanese yen continues to appreciate. Information came from The Mainichi Daily News Japanese newspaper, which quoted company sources.

According to these sources, the Mizushima plant is now operating at only 60 percent of its total capacity, which is about 600,000 cars a year. The halted production line, which has an annual capacity of about 130,000 units, had been used for making the Lancer and other models for Europe and similar markets.

Aside from halting the production line, slowing overseas demand has also determined Mitsubishi Motors to give up on its earlier plan to expand production capacity. The automaker had planned to do that in order to compensate the drop in output caused by the March 11 earthquake and tsunami in northeastern Japan.