Mitsubishi has found a way to reduce the effects on its production costs of the Japanese yen's recent strengthening vis-à-vis the US dollar by transferring half of its production to Brazil. Production in Brazil is to start in April, which is the beginning of Japan's fiscal year, in the city of Catalão.
Mitsubishi plans to make its Brazilian facilities the export base to all other Latin American countries, as exports done from this country profit from low regional tariffs due to their involvement in Mercosur (Common Market of the South) as well as the trade agreements amongst Brazil and Mexico.
The firm's production and development strategy is progressive and set to manufacture up to 50,000 vehicles on an annual basis. It still plans to import motors, chassis, and other components from Japan.
Mitsubishi has been producing vehicles in Brazil since 1998.