How Mitsubishi and Chrysler became DSM

Relationships between Chrysler and Mistubishi that later made DSM

The origins of Diamond-Star Motors can be traced back to 1970 when Chrysler Corporation took a 15 percent stake in Mitsubishi Motors, as part of MMC's strategy of expansion through alliances with foreign partners. The U.S. company began distributing Mitsubishis as Chrysler-, Dodge- and Plymouth-branded captive imports, a successful venture as the compact cars met consumer demand for smaller and more fuel-efficient vehicles in the 1970s, filling a gap at the bottom of the Chrysler group's range.
By 1982, Chrysler was importing 110,000 Mitsubishis annually. However, a minor conflict was forming as the Japanese now wanted to sell directly through their own-branded dealerships. A voluntary import quota system was in place at this time, restricting the number of cars Japanese automakers could bring in to the U.S. As the Japanese company began to open its own branded dealerships to sell directly, every imported Cordia, Tredia and Starion sold by Mitsubishi had to be discounted from Chrysler's allocation.

In order to circumvent this, the two partners officially incorporated Diamond-Star Motors in October 1985, and in April 1986 ground was broken on a 1,900,000 sq ft (177,000 m²) production facility in Normal, Illinois. The plant was completed in March 1988, with an annual capacity of 240,000 vehicles.
Initially, three models were produced at this facility. The Mitsubishi Eclipse, Plymouth Laser and Eagle Talon were smaller 2+2 sports cars on a new co-designed platform. Models subsequently produced during the next decade included the Mitsubishi Mirage/Eagle Summit, the Mitsubishi Galant, the Dodge Avenger/Chrysler Sebring, and the Dodge Stratus.

Departure of Chrysler
Initially Diamond-Star Motors was a 50-50 joint venture between Chrysler and Mitsubishi. However, in 1991 the Japanese company purchased its partner's equity stake, and thereafter the manufacture of Chrysler vehicles was on a contractual basis. Chrysler sold its equity stake in Mitsubishi in 1993, and Diamond-Star Motors was renamed to Mitsubishi Motors Manufacturing America (MMMA) on July 1, 1995. Despite the departure, the two companies have maintained co-operative manufacturing agreements since then.
Currently the plant produces vehicles using the American-developed Mitsubishi PS platform, including the current Endeavor, Galant and Eclipse, and exports to 26 countries worldwide. Approximately 1,900 people work in the highly mechanized plant, alongside approximately 1,000 robots. Expansion in 2003 means that it now occupies 2,400,000 sq ft (223,000 m²).

Production, 1988–2005
Year
Vehicles
1988--2,409
1989--90,741
1990--148,379
1991--153,936
1992--139,783
1993--136,035
1994--169,829
1995--218,161
1996--192,961
1997--189,086
1998--157,139
1999--161,844
2000--222,036
2001--193,435
2002--202,352
2003--173,699
2004--113,435
2005--87,594
Total
2,752,854