Mitsubishi Merges 2 U.S. Subsidiaries : Reorganization: Its consumer electronics group in Cypress and high-tech marketing group in Torrance will be combined in a single Cypress-based entity.

CYPRESS —  Mitsubishi Electric America Inc. said Monday that it will merge its consumer electronics and high-technology marketing groups in an effort to cut costs and streamline its operations.

Effective Aug. 1, the two largest U.S. subsidiaries of Tokyo-based Mitsubishi Electric Corp.--Mitsubishi Electric Sales of America Inc. in Cypress and Mitsubishi Electronics America Inc. in Torrance--will be combined in a single entity.

The new company, to be called Mitsubishi Electronics America Inc., will be based in Cypress and employ 1,500 employees in California, Michigan and Illinois.

Mitsubishi will transfer about 250 employees from Torrance to a new 150,000-square-foot corporate headquarters under construction adjacent to an existing warehouse and engineering facility in Cypress. After the move is completed, Mitsubishi will have 650 employees in Orange County.

Mitsubishi said it plans to shift more product design and manufacturing responsibilities to the new company.

The merger, intended to enable Mitsubishi’s U.S. divisions to operate more efficiently, is the first major reorganization for Mitsubishi Electric America since it spun off the electronics group as a separate division in 1979, said Tachi Kiuchi, the new company’s chairman.

Mitsubishi’s goal, Kiuchi said, is to make the new company “the American version of IBM Japan.” International Business Machines Corp. has achieved great success by hiring local managers to run its operations in Japan, and Mitsubishi hopes to duplicate that strategy by using more American managers at its U.S. operations.

The merged company will produce a variety of high-tech and consumer electronics products, including computers, computer peripherals, television and video products, semiconductors, factory automation equipment, and elevators and escalators. It will also include a customer service operation.

The new entity will have combined annual revenue of $2.5 billion for fiscal 1990, the company said.

Kiuchi said that any layoff resulting from the merger would not exceed 20 employees.