| Diamond-star Motors |
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Information AboutDiamond-star Motors |
| CATEGORIES ABOUT DIAMOND-STAR MOTORS | |
| mitsubishi factories | |
| bloomington-normal, illinois | |
| joint ventures | |
Diamond-Star Motors (commonly abbreviated to '''DSM''') was an Automobile -manufacturing joint venture between the Chrysler Corporation and Mitsubishi Motors Corporation (MMC). The name came from the parent companies' respective logos: three ''diamonds'' (Mitsubishi) and a penta''star'' (Chrysler). Diamond-Star Motors was officially renamed '''Mitsubishi Motor Manufacturing of America, Inc. (MMMA)''' in 1995, and since 2002 the plant's official title has been '''Mitsubishi Motors North America, Inc. (MMNA) Manufacturing Division'''. History of MMMA at official website DSM can also refer to three of the vehicles produced by Diamond-Star Motors, the Mitsubishi Eclipse , Eagle Talon , and Plymouth Laser . "What exactly is a DSM?" , DSM.org FAQ Page 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 Import s, a successful venture as the Compacts 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. History of Mitsubishi , Funding Universe (subscription required) 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 Automaker s could bring in to 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. INCORPORATION In order to circumvent this, the two partners officially incorporated Diamond-Star Motors in October 1985, and in April 1986 ground was broken on a 1.9 million square-foot (177,000 m&2) production facility in Normal, Illinois . The plant was completed in March 1988, with an annual capacity of 240,000 vehicles. 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 / Eagle Summit , the Mitsubishi Galant , the Dodge Avenger / Chrysler Sebring , and the Dodge Stratus . About the vehicles , MMMA official website 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 equity stake, and thereafter the manufacture of Chrysler vehicles was on a contractual basis. Chrysler sold its equity stake in Mitsubishi in 1993, and Diamond-Star Motors was renamed to Mitsubishi Motors Manufacturing America (MMMA) on July 1 1995 . Despite the departure, the two companies have maintained co-operative manufacturing agreements since then. Currently the plant produces vehicles using the American-developed Mitsubishi PS Platform , including the current Endeavor , Galant and Eclipse , and exports to 26 countries worldwide. There are approximately 1,900 people working in the plant. The highly mechanized production process involves as many as 1,000 robots. Expansion in 2003 means that it now occupies 2.4 million square-feet. About the facility , MMMA official website UNIONIZATION In 1989, the workers at the plant formed United Auto Workers (UAW) Local 2488, and signed their first contract with the company. The local and the company have negotiated eight contracts in all, with only one strike. After the departure of Chrysler, the plant became the only unionized U.S. auto plant wholly owned by a Japanese company. Jeffrey Rothstein, "The Uncertain Future of the American Auto Industry," New Labor Forum 15(2), p. 69. "Mitsubishi Motors North America, Inc. - Manufacturing Division" , Mitsubishi Motors North America website PRODUCTION, 1988–2005 REFERENCES EXTERNAL LINKS
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