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The Central Illinois Mitsubishi Task Force (CIMTF) met on
January 26 at the Normal Theater. This was the first opportunity for
the CIMTF to see and hear Mr. Kim Hill of the Center for Automotive
Research (CAR) and the Automotive Communities Program (ACP). In
addition, the program included Mr. Patrick McKeehan of the St. Louis
County Economic Development Council. His role in St. Louis County
was to develop a similar task force in response to the closing of a
Ford Motors facility in Hazelwood, Missouri.
The meeting consisted of a presentation by both gentlemen,
followed by discussion.
Summary of Meeting - top of
page
Mr. Kim Hill presented a large amount of data regarding the
significance of the auto industry in North America and Ontario
(Canada). The most significant and important part is the tremendous
impact one manufacturing job at the auto plant has on the economy.
Through its study of the automotive manufacturing industry in North
America, CAR has determined that for the average automobile
manufacturing plant employing 2,657 people, the following impacts
are made throughout North America: 560 people are employed in the
manufacturing of powertrains (or transmission systems), 858 people
are employed in the manufacturing of body parts and other large
stamped items (stamping plants) and over 9,500 people are employed
in the manufacture of parts and components. Most of these jobs are
within a 450 mile radius. In addition, another 14,000 non-supplier
jobs are associated with this one plant. Over 27,600 jobs are
associated with one automobile manufacturing plant. Therefore, when
one closes or dramatically cuts back production real impact is felt
rippling through the economy.
Lessons Learned
Mr. Patrick McKeehan of the St. Louis County Economic Development
Council shared his experience when Hazelwood, Missouri was faced
with a similar situation as we face in McLean County. Mr. McKeehan
was able to share the lessons leaned in Hazelwood. He summarized
them this way:
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Strong and persistent leadership is required - Working with the
company, the state government and local stakeholders require
strong consistent leadership and persistence. Persistence is
required to constantly push the agenda forward. Persistence is
required in learning what the company's needs are and how local
government leadership and the local business community can assist
them.
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Building partnerships - The local community must continue to
build partnerships with everyone who has a stake in this project.
Looking at the impact this facility has in the community indicates
(see paragraph above) how important it is to almost everyone. The
community (and this task force) must build relationships and
partnerships at every level in the private and public sector.
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Focus on industry & job retention - The task force and
community must understand the industry and company completely and
thoroughly. We must educate ourselves and fully understand how the
company and industry operates. Our goal must be to bring the
worker back to the line, improve the opportunity for increased
employment and get the company back to full production. Success
produces new jobs/investment.
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Maintaining the right business environment - We must be aware
of what external activities, laws and legislation might impact the
company and work to maintain an environment in which the company
can prosper. Working with local, state and federal government
authorities and legislators, we must maintain the business
environment that brought Mitsubishi to McLean County in the first
place.
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Adopt proactive strategies - Developing strategies that are
assertive and promote our chances to increase jobs is the key.
Waiting to see what happens with the company will not suffice. We
must work with Mitsubishi's personnel in policy, real estate,
industrial relations, legal, manufacturing, operations, utility
cost management, facilities management and purchasing to
understand what impact we might be able to have as a community.
Communities that have been successful working with automotive
manufacturers are ones with positive community attitudes towards the
plant, that have a regional champion or empowered deal-maker to work
with the company and that have a strong quality of life. In fact,
Kim Hill reported that in their survey of industry leaders it was
indicated that the communities having the best success are "those
that act together as one entity. They have the energy to get the
deal completed. They know what is going on at their plant, and they
know what is going on in the industry."
Next Steps for the Central Illinois
Mitsubishi Task Force - top of
page
Following the general task force meeting the steering committee
met and discussed the next steps. We once again discussed several
keys to success in creating these types of endeavors, but applied
them to our unique situation. With the Bloomington-Normal EDC
managing the process we decided to move forward on several
fronts:
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We are continuing to work with local company officials to set
up a meeting with Rich Gilligan, the new North American president.
Mr. Gilligan, as most people know, managed the Normal plant until
his promotion several weeks ago. Once we have set up a meeting
with Mr. Gilligan we will let everyone know of the results.
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We will continue to work with the State of Illinois and the
Commerce and Economic Opportunity and Central Management Services
departments to see how Mitsubishi can have additional
opportunities to sell their vehicles to state agencies, local
governments and others eligible under the State's Joint Purchase
Program.
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We will continue to formulate and develop a Central Illinois
Joint Purchase Program for Mitsubishi vehicles.
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A communications plan will be developed by the
Bloomington-Normal EDC to communicate externally and internally.
According to Kim Hill, it is very important that we communicate
effectively and efficiently to our audiences. This newsletter is
one part of that communications plan. We also want to make sure
that as a group we are unified in our purpose. This requires a
single message. We will be issuing a plan in the very near
future.
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Finally, as part of a three-part project we will:
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Get the numbers right - In other words, we will study and
learn as much as we can about the details and facts of operating
automobile manufacturing plants to the extent we are capable and
the information is available.
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Analyze ALL costs - Working closely with many sources, we
will analyze all costs associated with the operation of this
manufacturing plant. We will then ask ourselves, 'Is there
anything we can do locally, regionally or at the state or
federal level to improve the cost situation?'
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We will look at all options. What can be done to improve
Mitsubishi's situation here in Normal? In Illinois? What can we
do to be a part of its turnaround?
Over the next several months we will be aggressively moving
forward on all these initiatives. We will develop additional
information and distribute it to you as needed. In the meantime, if
you have any ideas, suggestions, comments or complaints please feel
free to contact us at anytime.
Recent News Articles on the
Internet - top of
page
1. Mitsubishi announces revival plan - by Yuri Kagemaya,
Associated Press
TOKYO - Mitsubishi Motors Corp. is
getting a fresh infusion of cash from its affiliated companies,
barely eight months after an earlier massive bailout failed to
revive the scandal-stained automaker. The company said Friday
.
To see the rest of the story go to: http://www.pantagraph.com/stories/012905/new_20050129028.shtml
2. MMNA to keep Normal plant - By Steve Arney
NORMAL
- Mitsubishi Motors Corp.'s recovery plans include keeping its
Normal car plant, said Rich Gilligan, president of Mitsubishi
Motors North America. "To set the record straight, there is no
plan to sell or partly sell our plant in Normal," he said Friday
during a teleconference statement.
To see the rest of the
story go to:
http://www.pantagraph.com/stories/012905/new_20050129029.shtml
3. MMNA group meets for first time - By Mary Ann
Ford
NORMAL - One auto industry forecaster believes
Mitsubishi Motors auto sales will plummet to 60,000 in 2008 - less
than half of this year's expected sales. Another forecaster
predicts exactly the opposite: Sales will not only.
To see the rest of the story go to:
http://www.pantagraph.com/stories/012805/new_20050128033.shtml
4. Mitsubishi Motors unveils revitalization plan
TOKYO, Jan. 28 (Xinhuanet) - Scandal-hit Mitsubishi Motors
Corp. will get financial backup from the Mitsubishi group and aims
to return to the black in fiscal 2006, according to its newly
composed revitalization plan unveiled on Friday. The company also
plans to enhance operational tie-up with other automakers, like
Nissan Motor Co.
To see the rest of the story go to:
http://news.xinhuanet.com/english/2005-01/28/content_2520348.htm
5. 300 Let Go by Auto Unit - Job cuts at Mitsubishi Motors'
finance arm in Cypress are part of the Japanese carmaker's
restructuring plan. By John O'Dell, Times Staff Writer
Mitsubishi Motors North America said Friday that its in-house
finance arm would lay off most of its Southern California-based .
To see the rest of the story go to:
http://www.latimes.com/business/la-fi-mitsu29jan29,1,7995341.story?coll=la-headlines-business&ctrack=2&cset=true
Related Articles
Full Speed Ahead -
Toyota CEO Fujio Cho is driving the Japanese automaker to new
heights-and straight past the competition. By Clay Chandler -
When Fujio Cho arrived in Georgetown, Ky., in 1986 to supervise
production at Toyota's first American factory, he soon discovered
it was easier to export cars than Toyota's ideas about how to
build them. "There were cultural differences right from the
beginning," he recalls. "We'd give.
To see the rest of the story go to:
http://www.fortune.com/fortune/ceo/articles/0,15114,1019797,00.html
Lowering the Bar: Mitsubishi to trim vehicle lineup, sales
targets for North America - by James B. Treece - Automotive
News Posted Date: 2/2/05
TOKYO - Mitsubishi Motors Corp. will
offer one fewer new nameplate in North America than previously
planned in the next three years. It also expects to sell fewer
cars than it previously targeted. The company did not say which
model it was canceling, but it is expected to be the replacement
for the Diamante, Mitsubishi's lowest-volume car. Mitsubishi
sold.
To see the rest of the story go to:
http://www.autoweek.com/news.cms?newsId=101704
Other Web Sites - top of
page
1. Center for Automotive Research and Automotive Communities
Program - http://www.cargroup.org/
2. Mitusbishi Motors - http://www.mitsubishicars.com/MMSA/jsp/index.jsp
3. Mitsubishi Motors Manufacturing North America, Inc. - This
is the local plant's website - http://www.mitsubishimanufacturing.com/
4. Chicago Auto Show - February 11-20, McCormick Place -
Welcome to one of the premier automotive events in the world. 2005
is a historic year for Chicago. The City of Broad Shoulders gets
its auto show supersized to an astonishing 1.2 million sq. ft.
(that's 111,500 sq. m. for everyone in the metric world ) -
meaning it's 42 percent bigger than last year! (Mitsubishi will
display at the show). See it at: http://www.chicagoautoshow.com/.
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