Australia to lobby MMC amid fears of plant closures

SYDNEY (Kyodo) The Australian government will send a ministerial delegation to Japan to urge Mitsubishi Motors Corp. to keep its two manufacturing plants in the state of zSouth Australia open, Industry Minister Ian Macfarlane's office said Friday.

Ambassador to Japan John McCarthy will meet with MMC President Yoichiro Okazaki on Monday, said Kirsty Boazman, Macfarlane's spokeswoman.

The ambassador will seek a meeting with Okazaki for Macfarlane and South Australian State Treasurer Kevin Foley on May 10, she said.

MMC said Friday that Okazaki, a board member of Mitsubishi Heavy Industries Ltd., will replace Rolf Eckrodt, who resigned as chief executive officer and president Monday.

Mitsubishi Motors Australia's two Adelaide factories produce the Magna car and are one of the state's biggest employers, with a workforce of 3,300.

Reports from Japan have suggested the financially troubled automaker will cut 4,500 jobs internationally, and reports from Germany say DaimlerChrysler AG, which holds a 37 percent stake in MMC, might sell or close the Adelaide operations.

"The ministers will be pointing out the support Mitsubishi has received from both federal and state governments," Boazman said.

In 2002, the South Australian state government provided MMC with a 35 million Australian dollar one-off assistance package, which Foley this week threatened to ask the company to repay if it pulls out of Australia.

"We have had long and close dealings with Mitsubishi and we look forward to another 10 years of supporting them through a similar package beginning in 2006," Boazman said.

All four car manufacturers in Australia receive an industry assistance grant.