COVID hits Mitsubishi’s financial health

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    Mitsubishi Motors Philippines Corp. (MMPC) yesterday said the pandemic has severely affected the company’s financial health status that led to the “difficult task” of rationalizing its current workforce, a statement said.

    MMPC declined to comment on the total number of employees that were included in the workforce reduction.

    It, however, assured the company extended the best assistance it could provide to those laid off.

    “Despite the improved sales that the automotive industry experienced in the last few months, MMPC would still have to acknowledge that the pandemic situation has severely affected the company’s health status. Like any other corporation, MMPC is faced with a difficult task to rationalize its current workforce to cope with the ongoing challenge,” the company said without giving any details.

    The Philippine Metalworkers Association (PMA) said MMPC has let go of about a hundred workers since August, including those offered with early retirement. In 2018, PMA said MMPC also retrenched 400 employees.

    At the end of September, MMPC sales dropped 43 percent from 46,007 units last year to 26,287 units. MMPC has maintained its standing as the second largest automotive company in terms of sales.

    The company’s most recent major investment is for a P4-billion stamping plant for the assembly of the Mirage (G4 and Hatchback models), its entry to the Comprehensive Automotive Resurgence.