Mitsubishi to end U.S. vehicle output, report says

(Reuters) -- Mitsubishi Motors Corp., faced with an expiring union contract at its only plant in North America, declined to comment Thursday on a report that it planned to end auto production in the United States.

Japan's Nikkei news service said the move to cease production at Mitsubishi's factory in Normal, Ill., is part of a strategic shift to the growing Asian market.

The company has "no statement," said a spokesperson for Mitsubishi Motors North America. A source familiar with the company's strategy said:  "We have no plans to stop selling. We are concentrating on enhancing our selling in the United States."

 The Nikkei report said Mitsubishi, one of Japan's smallest automakers, would look for a buyer for the plant, which opened in 1988 as a joint venture between Mitsubishi and its then-partner, Chrysler.

The report also said Mitsubishi would begin negotiations with labor representatives to maintain employment for the plant's 918 workers, who are represented by the UAW.

Normal Mayor Chris Koos, in an emailed statement on Thursday, said, "I have heard nothing, and am trying to get information" from the plant, which is located about 140 miles southwest of Chicago.

Kyle Young, vice president of UAW Local 2488, which represents the plant's workers, said the union's contract expires in August.

"We haven't heard anything," he said in a phone interview. "We're supposed to have negotiations coming up" on a new contract. In the meantime, "it's business as usual here - we're pumping out cars."

The Normal plant is the only Japanese-owned U.S. auto factory whose hourly workers are represented by the UAW.

At its peak in the early 2000s, the Normal plant built more than 200,000 cars a year. Last year, production of the Outlander Sport totaled 69,178, according to Mitsubishi.

The company's U.S. sales have jumped 25 percent to 49,544 vehicles this year through June on a 17 percent increase in Outlander Sport deliveries and 40 percent surge in car volume.

On its website, Mitsubishi said the Normal factory contributes $120 million a year to the local economy in taxes, salaries and benefits.

(Hans Greimel contributed to this report.)