Mitsubishi's thai unit to halve output

It has an annual production capacity of 200,000 vehicles.

"We will operate at about 40 per cent of our full capacity in February and March but still expect to produce 50,000 units in the first half," said a senior executive who asked not to be named.

Like other auto-makers, Mitsubishi has been hit hard, because 90 per cent of its production is export-oriented. A full 95 per cent of total production is pickups.

Domestic demand for pickups fell sharply last year following fluctuations in the diesel price and the onset of the global financial crisis that sank demand from major export markets, particularly the United States and Europe.

Morikazu Chokki, the outgoing president of Tri Petch Isuzu Sales, earlier urged a cut in the excise tax on pickups to boost domestic demand.

Industry Minister Charn-chai Chairungrueng said that once he returned from his official trip to Japan, he would meet with auto-makers to discuss their proposals.

Last year, sales of 1-tonne pickups fell 17.6 per cent in terms of volume, compared with 33.3-per-cent growth in passenger cars.

The Mitsubishi executive said the company would focus more on passenger cars.

The company employed 4,800 workers as of last November 30. However, it terminated 200 workers in December and 900 in January, due to a drastic drop in production and sales. It also eliminated one of the two production shifts, the executive said.

"We've not set our plan for April yet. We must monitor the situation closely and adjust it month by month," said the executive.

The source also said the company had reviewed and minimised its investment plans regarding eco-cars. "We insist on making eco-cars here, but we must postpone that, due mainly to the gloomy economy."

Mitsubishi originally planned to start up its eco-car production in 2010.

To boost vehicle sales, Mitsubishi will launch a special promotion this month. Loans at interest of 0.82 per cent will be available for buyers of the Triton Plus Double Cab GLS. Lancer CNG buyers can also pay monthly instalments starting at Bt7,999 for 72 months.

Meanwhile, Mitsubishi Motors executives are scheduled to meet Charnchai tomorrow during the government's roadshow in Tokyo, to discuss investment in Thailand.