Mitsubishi Motors to Hike Capacity 10%

December 06, 2017 at 4:29 PM

Mitsubishi Motors Corp. is launching a 25 billion-yen ($223 million) effort to expand its global production capacity 10% to 1.5 million units over the next 18 months.

The plan will raise MMC’s domestic output capacity to 700,000 vehicles, The Nikkei reports. Earlier this year the company opened a new plant in Indonesia with annual capacity to assemble 160,000 vehicles. MCC also assembles cars in the Philippines and Thailand and at several joint venture facilities.

The carmaker, which is recovering from a fuel economy cheating scandal last year, forecasts its sales in the current fiscal year ending in March will grow 11% to 1.02 million units. Now under the control of Nissan Motor Co., the company targets sales of 1.3 million vehicles in fiscal 2019.

MMC anticipates a net profit of 68 billion yen ($606 million) in the current fiscal year after losing 199 billion yen ($1.7 billion) in the previous 12-month period. The company expects its operating profit will zoom by a factor of 14 to 70 billion yen ($623 million).