SA: Mitsubishi confident of remaining in Australia: Tom Phillips

AAP General News (Australia)
04-27-2004
SA: Mitsubishi confident of remaining in Australia: Tom Phillips

ADELAIDE, April 27 AAP - Car maker Mitsubishi said today it was confident it would
continue its operations in Australia.

The company had invested hundreds of millions of dollars in its Australian plants and
was not about to see the money "poured down the drain", Mitsubishi Australia managing
director Tom Phillips said today.

The future of Mitsubishi's Adelaide plants remains under a cloud after DaimlerChysler,
which holds a 37 per cent stake in Mitsubishi Motors Corp (MMC), announced last week it
would cease further financial support for the debt-ridden company.

MMC president and chief executive officer Rolf Eckrodt resigned from the company last
night, citing the decision of DaimlerChrysler not to provide further funds.

Mr Phillips said he had received no information on whether or not Mitsubishi would
shut down its operations in Australia, but remained "highly confident that we're going
to continue".

"I think there are many more signs out there that we're going to continue," Mr Phillips
told ABC Radio.

"We've spent hundreds of millions of dollars so far on a new car project and I can't
see that's going to be poured down the drain and that we won't build a car.

"We think we can play a role in the Mitsubishi global company.

"We're trying to be a niche player and we have the ability to do small runs of products
- you know, 15,000 (or) 10,000 a year perhaps - which the big plants overseas just are
not interested in."

Mr Phillips today played down the significance of Mr Eckrodt's resignation, saying
he was nearing the end of his two-year contract.

However, the growing speculation about Mitsubishi's future in Australia was having
an effect on car sales, Mr Phillips said.

"People assume that if Mitsubishi is closing down - which I don't think it is - but
if people are assuming that (then) they're holding off from buying," he said.

"It's a bit unfortunate because even in the worst of circumstances, (if) we did close,
we would still be here selling and servicing our other products."

Australian Manufacturing Workers' Union state secretary John Camillo said workers were
increasingly worried about their future.

"We're talking about 3,500 permanent full-time workers here at Mitsubishi," Mr Camillo
told ABC Radio.

"Quite a few of these people are very concerned in regards to this roller-coaster of
Mitsubishi - (that it's) here to stay and then it's not and then it is and so on.

"They really need a decision out of Mitsubishi of where their future lies."

AAP la/cjh/sp

KEYWORD: MITSUBISHI PHILLIPS

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