Mitsubishi Fuso suspends Portugal truck production

Mitsubishi Fuso has suspended production at its truck manufacturing plant in Tramagal, central Portugal, placing 267 employees on temporary lay-off throughout July as the company restructures its European operations amid the automotive industry’s transition to zero-emission vehicles.

The lay-off came into effect today after between 25 and 30 temporary workers saw their contracts expire, according to union officials.

In a notice sent to employees, the company said the measure involves the temporary suspension of employment contracts, and reduced working hours for the affected workers. It said the decision was necessary to cut costs and ensure the long-term financial sustainability and future viability of the factory, while preserving permanent jobs.

Alongside the temporary lay-offs, the company is continuing a voluntary redundancy programme and expects around 40 permanent employees to leave the business by mutual agreement before the end of July.

Following the production shutdown in July, the factory is due to close for its annual summer holiday in August.

“Temporary business crisis”

Management described the situation as a “temporary business crisis” caused by significant legal and structural changes affecting both the automotive industry and the wider Mitsubishi Fuso group.

The company said the lay-off was an “appropriate, necessary and proportionate” measure to help the factory navigate the transition.

The Tramagal plant, located in the municipality of Abrantes in Santarém district, is undergoing a restructuring linked to changes in the range of vehicles it manufactures.

It will cease production of diesel-powered Canter trucks, weighing up to 3.5 tonnes, for the European market, while continuing to build larger Canter models and the all-electric eCanter.

According to the company, the changes reflect a new European ordering and distribution model, as well as wider market developments driven by increasingly stringent emissions regulations and the shift towards zero-emission commercial vehicles.

Union concern over factory’s future

The SITE-CSRA union, which represents workers in manufacturing, energy and environmental sectors, has voiced concern about the future, arguing that the reduction in production is also linked to broader restructuring within the Mitsubishi Fuso group and ongoing changes across the European automotive industry.

The company, however, insists the Tramagal factory remains an integral part of its international manufacturing network and says no additional structural workforce reductions are planned beyond measures already announced.

The Tramagal plant is one of Portugal’s most significant commercial vehicle manufacturing facilities and has long served as Mitsubishi Fuso’s principal European production base for the Canter range.

Source: SIC Notícias/ Lusa

Natasha Donn

Journalist for the Portugal Resident.