Mitsubishi Will See Losses in the End of the Current Year

Mitsubishi North America could be axed even this fiscal year, according to the Japanese company’s Chief Osamu Masuko.

Mitsubishi has been striving in North America and hasn’t reached any operating income since in half a decade. And even then, it was for a tiny profit of $6.36 million. Since then, North America has been a drain on the company’s finances but favorable exchange rates and high local production could put it back in the black.

At the last Tokyo Motor Show, Masuko announced that Mitsubishi could be axed even this year in North America, which was initially going to happen next fiscal year. The company has reduced production at its Illinois factory to 71,000 models this year but has ramped up output closer to full capacity. If overseas demand continues to rise, Mitsubishi will lift production to 110,000 vehicles per year.

The automaker predicts that U.S. sales will reach 23 % to 71,000 cars in the fiscal year ending March 31, 2014.

Critics have doubted the company’s viability in the North American marketplace with a limited product portfolio, but these latest announcements seem to suggest Mitsubishi is committed and is on its way to turn around its business.