Mitsubishi moving North American headquarters close to Nissan's
The two partners are strengthening their ties.
While the Renault-Nissan alliance is experiencing unprecedented strain following the arrest of former boss Carlos Ghosn, the Japanese firm is strengthening ties with Mitsubishi, the group's third partner. Mitsubishi has announced it will move its headquarters from Cypress, California, to Franklin, Tennessee, in order to be closer to Nissan.
Mitsubishi explained moving to the outskirts of Nashville is part of its strategy to completely re-invent and re-launch its American division. Looking ahead, Mitsubishi and Nissan will look to leverage the benefits of economies of scale by sharing product platforms, engines, and other parts, and sometimes jointly developing vehicles. Having their North American headquarters side-by-side will make it easier for executives to ensure the two brands don't overlap.
The firm's Cypress facility employs nearly 200 people; a majority of them will make the move. The departments that scheduled to relocate include sales, marketing, IT, human resources, communications, parts and service, product planning, dealer operations, finance, and legal. However, the company hasn't found its new headquarters yet.
Mitsubishi will move into temporary offices until the real estate company it's working with finds a suitable building. Being a relatively big corporation, it can't simply rent a U-Haul and drive across the country. It expects the move will begin in August of 2019 and wrap up before the end of the year.
"Mitsubishi Motors is changing the way we go to market in the United States, and it is leading to a rebirth of the company,” said Fred Diaz, the head of its North American division, in a statement.