Diamond-Star Motors

Last updated
Mitsubishi Motors North America, Inc. (MMNA) Manufacturing Division
Company typeDivision
IndustryAutomobile manufacturing
FoundedOctober 1985
DefunctNovember 2015
Headquarters100 N. Mitsubishi Motorway, Normal, Illinois 61761, United States
Key people
Jerry Berwanger (EVP, COO)
Hideyasu Tagaya (Chairman, MMNA)
Number of employees
1,900
Parent Mitsubishi Motors North America
Website MitsubishiManufacturing.com

Diamond-Star Motors (DSM) was an automobile-manufacturing joint venture between the Chrysler Corporation and Mitsubishi Motors Corporation (MMC). [1] The name came from the parent companies' respective logos: three diamonds (Mitsubishi) and a pentastar (Chrysler). [2] Diamond-Star Motors was officially renamed Mitsubishi Motor Manufacturing of America, Inc. (MMMA) in 1995, four years after Mitsubishi took sole control of the plant, and from 2002 to 2016 its official name had been Mitsubishi Motors North America, Inc. (MMNA) Manufacturing Division. [3]

Contents

In the automotive enthusiast community, DSM, especially used in the singular (e.g. a DSM) generally refers to the original first- and second-generation Mitsubishi Eclipse, Eagle Talon, and Plymouth Laser, which all shared the same Diamond-Star Motors vehicle platform.

History

Background

The origins of Diamond-Star Motors can be traced back to 1970 when Chrysler Corporation took a 15 percent stake in Mitsubishi Motors, as part of MMC's strategy of expansion through alliances with foreign partners. The U.S. company began distributing Mitsubishis as Chrysler-, Dodge-, and Plymouth-branded captive imports (e.g. Dodge Colt), a successful venture as the compact cars met consumer demand for smaller and more fuel-efficient vehicles in the 1970s, filling a gap at the bottom of the Chrysler group's range. [4]

By 1982, Chrysler was importing 110,000 Mitsubishis annually. However, a minor conflict was forming as the Japanese now wanted to sell directly through their own-branded dealerships. A voluntary import quota system was in place at this time, restricting the number of cars Japanese automakers could bring into the U.S. As the Japanese company began to open its own branded dealerships to sell directly, every imported Cordia, Tredia, and Starion sold by Mitsubishi had to be discounted from Chrysler's allocation. [4] Another point of contention was that Chrysler had the right of first refusal of any Mitsubishi automobiles in the US market until 1990. [5]

Incorporation

A 1990-91 Eclipse, the first Mitsubishi-badged vehicle built at the Diamond-Star Motors facility 90-91 Mitsubishi Eclipse.jpg
A 1990–91 Eclipse, the first Mitsubishi-badged vehicle built at the Diamond-Star Motors facility
The ninth generation of the Galant sedan was originally designed and built exclusively for the North American market, and was MMMA's volume seller. 04-06 Mitsubishi Galant.jpg
The ninth generation of the Galant sedan was originally designed and built exclusively for the North American market, and was MMMA's volume seller.

In order to circumvent this, the two partners officially incorporated Diamond-Star Motors in October 1985. An incentive package worth US$274 million, and an intense and controversial lobbying effort by state and local government authorities, meant that Illinois won the new auto plant, [6] and in April 1986 ground was broken on a 1,900,000 sq ft (180,000 m2) production facility in the town of Normal. The plant was completed in March 1988, with an annual capacity of 240,000 vehicles. [3] In 1989, the workers at the plant formed United Auto Workers Local 2488, and signed their first contract with the company. [7]

Initially, three models were produced at this facility. The Mitsubishi Eclipse, Plymouth Laser, and Eagle Talon were smaller 2+2 sports cars on a new co-designed platform. Models subsequently produced during the next decade included the Mitsubishi Mirage/Dodge/Plymouth Colt/Eagle Summit sedans, the Mitsubishi Galant, the Dodge Avenger Coupe/Chrysler Sebring Coupe, and the Dodge Stratus Coupe. [8]

Departure of Chrysler

Initially Diamond-Star Motors was a 50-50 joint venture between Chrysler and Mitsubishi. However, in 1991 the Japanese company purchased its partner's interest, and thereafter the manufacture of Chrysler vehicles was on a contractual basis. Chrysler sold its equity stake to Mitsubishi in 1993, and Diamond-Star Motors was renamed Mitsubishi Motors Manufacturing America (MMMA) on July 1, 1995. [3] Despite the departure, the two companies have maintained various co-operative manufacturing agreements since and considered all vehicle produced until 1995 [9] as Diamond Star Motors.

Formerly, the plant produced vehicles using the American-developed Mitsubishi PS platform, including the Endeavor, Galant, and Eclipse. An expansion in 2003 enlarged the plant to 2,400,000 sq ft (220,000 m2). [10] In mid-2012, the plant began producing the Mitsubishi ASX which is sold in United States as the Outlander Sport. Approximately 1,900 people worked in the highly mechanized plant, alongside approximately 1,000 robots.

Closure and sale of the plant to Rivian

In July 2015, Mitsubishi announced that it would end production at the plant in Normal. The plant had been operating well below capacity for several years. In 2014, it produced just over 61,000 vehicles out of a capacity of 240,000 vehicles annually. Production would shift to Japan, with Mitsubishi importing all vehicles sold in North America. Mitsubishi said it would try to sell the plant to preserve jobs, but that the plant would be closed by November if no buyer was found. [11] Ultimately a buyer was not found in time, and production ended on the 30th of November. Most of the workers (900 out of 1200) were let go on that date, with the rest staying to build replacement parts until the final closure of the plant in May 2016. [12] Eventually the plant was sold to Maynards Industries, an auctioning and liquidation firm, with ownership to transfer June 1, 2016. [13]

Currently, the facility is owned by American electric vehicle startup Rivian, which in 2017 acquired the plant and its contents for $16 million.

Production

YearVehicles
19882,206
198990,609
1990148,532
1991153,526
1992140,156
1993135,610
1994170,318
1995218,507
1996193,013
1997189,023
1998157,364
1999162,199
2000222,414
2001193,780
2002204,234
2003173,872
2004113,253
200587,791
200692,499
200778,771
200859,018
200918,502
201029,375
201131,114
201247,837
201369,766
201461,974
201538,186
2016-

(source: MMNA Production History and Facts and Figures 2016)

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References

  1. ↑ "Mixing Cultures On the Assembly Line", John Holusha, The New York Times , June 5, 1988
  2. ↑ " Business People; Mitsubishi Executive Joins Chrysler Venture", John Holusha, The New York Times, June 15, 1991
  3. 1 2 3 History of MMMA Archived 2007-01-17 at the Wayback Machine , MMMA official website
  4. 1 2 History of Mitsubishi, Funding Universe
  5. ↑ Stark, Harry A., ed. (May 1983), Ward's Automotive Yearbook 1983, vol. 45, Detroit, MI: Ward's Communications, p. 150, ISBN   0-910589-00-3
  6. ↑ Chapman, Margaret L.; Arun P. Elhance; John D. Wenum (1995). Mitsubishi Motors in Illinois. Greenwood Publishing Group. p. 129. ISBN   978-0-89930-972-9.
  7. ↑ "Working Class Voice: Labor Unions in McLean County" Archived 2010-09-17 at the Wayback Machine , Chapter 20: UAW 2488, Bloomington & Normal Trades & Labor Assembly web site
  8. ↑ About the vehicles Archived 2002-10-23 at the Wayback Machine , MMMA official website
  9. ↑ "Mitsubishi and Diamond-Star Motors".
  10. ↑ About the facility Archived 2012-09-07 at archive.today , MMMA official website
  11. ↑ "Mitsubishi throws in towel on fading era". 2015-07-29.
  12. ↑ "Union workers say goodbye to 27 years at Mitsubishi plant". 2015-11-30. Archived from the original on 2015-12-02.
  13. ↑ "Mitsubishi plant sold" . Retrieved 2016-05-18.

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