Japan's Mitsubishi Motors to axe 1,100 jobs

Mitsubishi Motors Corp. said Thursday it would cut 1,100 jobs, laying off one third of its temporary workers in Japan, as it reduces production to cope with sagging sales.

Japan's fourth biggest carmaker said it would not renew contracts with the workers when they expire at the end of March.

"We are adjusting production in order to reduce inventory stockpiles in view of the recent economic and market conditions," the company said in a statement.
Mitsubishi Motors aims to reduce its production in the current fiscal year to March by a further 30,000 vehicles, in addition to a reduction of 80,000 announced in October, a company spokesman said.

Mitsubishi has lagged behind other Japanese automakers as it recovers from a defect cover-up scandal that badly hurt its reputation, but other carmakers are also shedding temporary workers.

Toyota Motor Corp. has said it plans to axe 3,000 jobs -- half of its temporary workforce in Japan.

Nissan Motor, the third automaker in Japan, is shedding 3,500 jobs worldwide, while Mazda is scrapping 1,300 temporary jobs and truck-maker Isuzu is axing 1,400 domestic posts.

Japanese carmakers have expanded rapidly in recent years to meet brisk demand for their vehicles, but they have not been immune to the global economic downturn, even if they are in much better shape than their US rivals.

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