MITSUBISHI has announced plans for a new purpose-built Adelaide head office close to the airport that will cost $26 million and house an increased staff headcount that it needs to support its expanding product range.

The decision to remain in Adelaide is being seen as an acknowledgement of the experience and skills of local staff that could potentially have been lost with a move to another capital city – something Toyota Australia suffered in moving its sales and marketing operations to Melbourne from Sydney over the past 12 months

Mitsubishi Motors Australia Ltd (MMAL) CEO John Signoriello told GoAutoNews Premium that the company had been in the same building for about 50 years, tracing its involvement with the brand right back to the Chrysler days.

“It’s long overdue,” he said of the move.

“We considered moving out of the state and looked at options in other states, but there are strong reasons to remain here.

“Most importantly, our growth and our success is due to our staff. If we leave Adelaide we will lose those people who have achieved our growth.”

MMAL has about 180 staff in Adelaide and expects this will grow but has no definite count. The new complex will have space for 200 people.

“We also received assistance from the South Australian government – and other states also offered – which made it easier to remain in Adelaide,” he said.

“The new location at the airport also makes logistical sense.”

The government has committed $2 million to help MMAL relocate and initial estimates are that the new building will cost about $26 million.

Mr Signoriello said the rendering of the proposed building was only a concept and that it could change as the company looks at what it needs for the future. He said the design and layout of a new office could take a couple of months.

“We are very much involved in research and development projects with our parent (Mitsubishi Motors Corporation) and regularly host engineers and executives for new product launches and testing,” he said.

“I don’t think it is widely known that we have that involvement but MMC sees Australia as an important market and vehicles are regularly here for pre-production testing, including the next Triton.

“That involvement will be part of how we design the new building.”

Mr Signoriello said the building, which starts construction next year, had to be flexible enough to allow the company to grow.

But he said it was not designed to be shared with the other Alliance businesses, Renault and Nissan.

“They have their own facilities in Melbourne. We do share some facilities but, from a sales perspective, we are competitors.”

MMAL will retain its state-based offices around the country.

By Neil Dowling