CHAMPAIGN, Illinois (AP) -- Mitsubishi Motors North America said Friday that it will begin production of a new SUV crossover at its plant in Normal next year, promising to keep the facility open less than a month after its 1,100 union employees agreed to wage concessions.
The state of Illinois said it will give the company $29 million in tax incentives as it begins production of the new Outlander Sport.
The new vehicles, which Mitsubishi started making late last year, will replace four existing models now made at the Normal plant that will be phased out, Mitsubishi Motors North America President Shinichi Kurihara said Friday at the plant.
"Mitsubishi Motors remains fully committed to producing vehicles in Normal," he said. "We will build vehicles here not just for the United States, but for many nations around the world."
Mitsubishi has said the new model is part of its worldwide efforts to rejuvenate sales. It plans to produce the vehicle for North America as well as emerging markets such as Brazil and India.
The facility's union workers recently agreed to cut their pay by $1.67 an hour, a concession Mitsubishi said it needed to keep the plant open. In all the plant employs 1,300 people.
The plant now makes the Galant, Eclipse and Spyder and the Endeavor sport utility vehicle. All four will be phased out over the next few years.
The state of Illinois said it will give the company $29 million in tax incentives as it begins production of the new Outlander Sport.
The new vehicles, which Mitsubishi started making late last year, will replace four existing models now made at the Normal plant that will be phased out, Mitsubishi Motors North America President Shinichi Kurihara said Friday at the plant.
"Mitsubishi Motors remains fully committed to producing vehicles in Normal," he said. "We will build vehicles here not just for the United States, but for many nations around the world."
Mitsubishi has said the new model is part of its worldwide efforts to rejuvenate sales. It plans to produce the vehicle for North America as well as emerging markets such as Brazil and India.
The facility's union workers recently agreed to cut their pay by $1.67 an hour, a concession Mitsubishi said it needed to keep the plant open. In all the plant employs 1,300 people.
The plant now makes the Galant, Eclipse and Spyder and the Endeavor sport utility vehicle. All four will be phased out over the next few years.