Mitsubishi Motors is relocating its North America headquarters closer to where its sister company Nissan’s main office is located – in Tennessee.
The company’s plans to move from Cypress, California to Franklin, Tennessee was formally announced on June 25 and is seen to strengthen the state’s growing reputation as an epicenter of the automotive industry.
The state’s governor, Bill Lee, and Department of Economic and Community Development Commissioner Bob Rolfe made the joint announcement alongside Mitsubishi Motors North America. The move is expected to generate $18.25 million in investment and approximately 200 jobs.
Both politicians were revealed to have met with executives of the Japanese automaker during Lee’s first trade mission in Japan.
“As we drive toward the future, this is the perfect time for us to move to a new home. While we say farewell to the Golden State with a heavy heart, we’re excited to say hello to Music City,” Mitsubishi Motors North America President and CEO Fred Diaz said in a statement.
Franklin is located south of Nashville and is home to Tennessee’s most powerful Republicans, including Gov. Lee, U.S. Senator Marsha Blackburn, and House Speaker Glen Casada.
Since 1988, Mitsubishi’s North America headquarters has been situated in California. According to the company, the relocation will commence in August and is expected to be completed by the end of the year. A temporary office will initially manage operations to give the company ample time to select a permanent office in its new location.
According to Mitsubishi officials, the transfer to Tennessee is part of ongoing efforts to “reinvent every aspect of Mitsubishi Motors in the U.S.,” as well as strengthen the Renault-Nissan-Mitsubishi alliance.
Sister company Nissan currently has a production plant in Smyrna, Tennessee, and owns as 34% stake in Mitsubishi Motors.
Last week, Mitsubishi also approved the formal dismissal of Carlos Ghosn, who played a pivotal role in the three-way partnership between the three companies before being arrested on financial misconduct charges in 2018.