One of Japan’s leading motor industry names, Mitsubishi Motors Corp, is reportedly mulling over offering a retirement package to some workers as young as 45.
The move comes primarily as a result of a sharp drop in sales on the back of the ongoing coronavirus pandemic and a general downturn in the Japanese motor trade.
If approved, the retirements could start as soon as the middle of November.
The company on its own has a total workforce in the region of 14,000 according to sources, although in the wider business sense it forms part of a business trio with fellow motoring companies, Nissan and Renault SA.
It us understood that Mitsubishi is looking to reduce its total operating costs by 20% as a result of a drop in vehicle output of almost 70% this year, although the retirement package now under consideration will only apply to management level staff in the Japanese capital Tokyo, Aichi – near Nagoya – and Okayama in western Japan.
In related news the company will also be ceasing production of the once hugely popular SUV model Pajero whilst at the same time looking to expand further into South East Asian markets.
The drop in the company’s output was the worst of all Japan’s eight leading car makers and is expected to lead to net losses in the region of US$3.4 billion according to reports.