Mitsubishi Could Be Leaving, Soon!

[YSSMAN]

Mitsubishi product strategist Shinichi Kurihara at press event in Japan last week that if the automaker’s newest vehicles don’t sell well in the United States, the automaker might not be able to stay in the country. Kurihara said the vehicles like the Outlander, Lancer, and Eclipse have to “be successful for us to stay in business in the U.S.” In recent years, Mitsubishi has seen sales and revenue fall considerably.

...Uh oh!

Well, if I may be a bit blunt for a moment, it may even be in Mitsubishi's best interests to leave the United States. They arent making any money, or atleast, not enough money, so why stay? Their products have sub-par build quality and engineering available for similar prices to that of any GM, Honda, or Toyota, and really the only car they have been able to sell in large numbers has been the Lancer and the Evolution. Of course, classics like the Montero have continued to sell well enough, but with the sharp increase in gas prices, I would presume that sales of SUVs (which make up nearly half of the Mitsubishi lineup in the US) have declined extensively.

I look at it this way... If Mitsubishi is smart, they will withdraw only partially from the US market. If they could tie themselves back into the DCX alliance, they could sell a few of their models through Dodge dealers, particularly the Evolution, and still make a few bucks.

...Otherwise, good riddance. Mitsubishi isnt that fun, spunky company that they once were back in 1990. Get over it, they didnt figure it out.

 

[Poverty]

I only care for the evo range.

I reckon if mitsu collapse the evo will live on. Same for GM and the vette.

 

[Jim Prower]

Well, shoot, is Mistu sleaves Nroth America, we here in Central Illinois, where Mistubishi makes the U.S. Galant, the Eclipse, and the...uhm...what's the Galant-based SUV?- are screwed.

feh, the fact i don't know that is proof Mitsu needs to get their butts in gear. I'd like to see a turbo, AWD Eclipse, like the old days.

 

[LittleBahamut]

If Mitsubishi can't get their sales up, this will give the import scene some punches. No more Evo! Subaru would be very happy if the Evo is to leave the US.

 

[McLaren]

This isn't news. Mitsubishi had reports of going under about 2 years ago.

 

[YSSMAN]

Mitsubishi's troubles, yes, have been well known for years... And after their "split" from DCX, it was thought they would pull out as well, but they stayed in.

If I look at this from a merketing standpoint, I think the problem is that they are not reaching the audience in which they would want to have buying their cars and trucks. They need to appeal more to the younger folks, much like how VW has been targeting them over the past few years.

I say they cut the crap models, and sell what they know will sell: Lancer, Eclipse, Evolution, Montero. Thats all they need...

 

[Dave A]

It wouldn't suprise me to see Mitsubishi pulling out of the US but supplying unofficial dealers with rhd Lancer Evo's.

 

[Jim Prower]

I say they cut the crap models, and sell what they know will sell: Lancer, Eclipse, Evolution, Montero. Thats all they need...

Local problem....that means the Normal, IL plant won't be used NEARLY to capacity. Only one of those cars is built there.

I know people who work out there. if the Eclipse is the only car built there, that plant will suffer huge job cuts...

feh, I know you guys don't care, but I do. it's a local thing.

I also hear the Montero's going bye-bye.

 

[YSSMAN]

You guys build what, the Gallant and it's sister cars, right? So that means you would also have the new Chrysler Sebring and Dodge Avenger to start production with later this year...

What I'm saying is that Mitsubishi builds only a few products people want to buy, and builds quite a few that people do not. No one in their right mind is going to consider and Outlander or Endeavor if they have options like the Honda CR-V or Saturn Outlook. They are both built better, are more reliable, and will most-certianly hold their resale value much, much longer.

Mitubishi needs to be that wild company like they once were, the Mitsubishi that I remember when I was a kid. Back then, cars like the Eclipse and Gallant were pretty bad-ass when compared to the rest of the Japanese lineups, but these days, most people would go GM or Ford long before a Mitsubishi would ever be considered.

...Mitsubishi can indeed turn things around, but it is a long process, as seen by the recent turnaround at VW. Mitsubishi needs to consider who is buying their cars, and why people are buying them. My theory is that most folks are there because they are cheap, pretty fun to drive, and they are something different. They have some good products, but not all of them are.

I suggest Mitsubishi takes a look at their US lineip, and the lineups from around the world, and then decide what needs to go where. They arent going to be able to peddle trucks anymore in the US, so they are going to need to find some new cars to replace the sales. They need to get a super-mini like the Fit or the Versa to grab some market share, and they need to freshen up the Lancer just a bit to make it a bit more compeditive with cars like the Jetta, Rabbit, Civic, Corolla, etc.

...Its a game of money, and how much money they are looking to spend.

 

[Eric.]

+rep for YSSMAN


Good point. I agree that the Eclipse, Evo, and Montero are the only cars that I would be interested in (well, minus the Montero, but having one SUV would be a good idea I bet). I really don't car for the normal Lancer that much, but I may if they made it a little more Evo-like and gave it more performance. The Lancer should be to Mitsu as the Impreza and maybe even WRX are to Subaru. Both cheaper versions of the high performance flagship model with most of the looks and still decent performance.

 

[wasace96]

oh thats sad for the yoo ess of ay doesnt afect aus

 

[IMADreamer]

Local problem....that means the Normal, IL plant won't be used NEARLY to capacity. Only one of those cars is built there.

I know people who work out there. if the Eclipse is the only car built there, that plant will suffer huge job cuts...

feh, I know you guys don't care, but I do. it's a local thing.

I also hear the Montero's going bye-bye.

I do care. I hate to see anyone lose a job. I know in the past myself and my family have had to deal with periods of no employment and for proud people who pride themselves in working hard and having a decent job it's tough to deal with. I wouldn't wish bad times on any company because of the human factor. I hope mitsu turns it around so all those people keep their jobs.

As for mitsu I think it's sad what has happened to them. I see them as a dinasour of sorts. There is not a car in their lineup that appeals to me. They don't seem to progress any, and they use a lot of old tech in their cars. I know the younger kids like the Evo and it is a stellar performer but the build quality is horrible. Everything in that car feels cheap to me and the 4g63 while very tuner friendly, is not reliable. Other then just being brand loyal I would find it hard to see why anyone would choose and Evo over an STi.

 

[OZZYGT]

Yeahh that's true...Mitsubishi's dealership was right across the dealer where I used to work..and men where they dead or what?? they used to sell only 40 cars a month!!! can you imagine that?, 40 cars? there used to be like 11 salespeople working there and as far as I know, in order to get a decent living as a salesman, you have to sell at least 18 cars a month....boy were they doomed.

we used to sell 240-280 cars a month



ciao....

 

[Tornado]

I also hear the Montero's going bye-bye.

Which is sad, because, Evo-be-damned, the Montero is the best car Mitsubishi has sold in 8 years. Oh well.
Anyways, I think Mitsu should leave the U.S. entirely. Think about it: they are not in the favorable position that Nissan or Land Rover were when they needed to be restructured, and Mitsu also don't have the amazing amounts of back-up capital that they did either.

 

[YSSMAN]

Well, its not that they shouldnt stay, the problem is that they build too many cars that people would not want to buy in the United States. Given how many different choises from different companies we are given, most folks arent going to go out and buy a Mitsu because it doesnt have a big "H" on the hood, or the name doesn't rhyme with "Bore-ota."

A car like the Colt should be something Mitsubishi should be selling here. Same can be said of the 380 Series 2, baisically the same thing as the Gallant, refreshed for the Australian market.

...Dump the SUVs (except the Montero), and just sell cars. Small volue, low investment cars.

 

[Keef]

I think most people see Mitsu as a sporty company. I know when I list companies with midsize family cars I usually skip over Mitsubishi. But when I think about sporty coupes and AWD I automatically think Eclipse, EVO, Ralliart. Ask me about Dakar and Pajero and Montero pop into my head, but I can't remember the last time I saw a Montero on the road.

There's just not enough sporty car people in America to support a sporty ca company. They need to bring some eco-friendly cars, starting with the Colt. That name also would get attention since it's so familiar over here.

 

[Layla's Keeper]

Mitsubishi does at the least need to trim their line-up. I mean, honestly, Galant AND Diamante are redundancy on the level of Maxima and Altima.

Mitsubishi needs to be leaner and invest more money in products with longer life cycles than sporty coupes. Let's face it. The new Eclipse will do the same thing the outgoing Eclipse, and its competitors (Celica, Cougar, Tiburon) all have done. It'll be a styling flash-in-the-pan, become fashionable, and then fizzle out once it's old hat and buyers have seen something else.

The FF coupe market is a short term market, with product cycles of about 3-5 years. Mitsubishi really can't afford a new ground-up car every 3-5 years right now, but they can afford a solid, affordable, cleanly styled midsize sedan at a bargain price that'll last 5-7 years on the marketplace.

Mazda 6 is the perfect example of the car Mitsubishi needs right now, NOT a hotter Eclipse.

 

[YSSMAN]

^^^ Good point...

I find it amazing how much technology is shared between DCX and Mitsubishi, and just how long a particular product can be used to make a new model. Look at how long the last-gen Eclipse lasted, and the Gallant before it...

But then again, maybe they should be building products than can last a long, long time. They would simply need to refresh the products far more often, much like what they have done with the Evolution betweeen versions VII and IX.

 

[Tornado]

Mitsubishi does at the least need to trim their line-up. I mean, honestly, Galant AND Diamante are redundancy on the level of Maxima and Altima.

The problem is, however, that the Diamante and the Galant are both equally very good cars. Mitsubishi shot themselves in the foot by invading the Diamante's space with the Galant.

Mazda 6 is the perfect example of the car Mitsubishi needs right now, NOT a hotter Eclipse.

Good point. Mitsu needs to move the Galant back to where it was before they moved it upmarket.

 

[GT4_Rule]

oh thats sad for the yoo ess of ay doesnt afect aus

Oh jeez, look at this. Ace96 came back under cover...

Anyways, on Mitsubishi.

I agree on the fact that Mitsubishi is not that fun anymore. The only cars that I will ever consider are Evo and Eclipse. But Eclipse doesn't have the AWD and Turbo anymore, which isn't enough for some. Mitsubishi should really cut down on the excess fat it's carrying around and simplify their lineup. I'd hate to see Mitsubishi withdraw from US/Canada because they should be trying harder, not giving up. Alliance of some sort, say, Toyota, should help. DC doesn't want nothing to do with Mitsubishi anymore, it's evident in the fact that they got rid of Mitsubishi around 2 years ago.

 

[LittleBahamut]

From looking at Mitsubishi's lineup, I think there is only two ways they save themselves.

1. Stop production of cars/trucks with low sales.
2. Listen to people just how Toyota/Lexus does.

I have not seen any Raiders ever since it came out. Always Ford F150s, Toyota Tundras, Nissan Titans and thats it. The Raider just simply can't grab the attention of pick up truck type of people. Either redesign it or get rid of it. The rest of the cars, I honestly don't care about them,

The reason why I think Toyota/Lexus is doing so well is because they actually LISTEN to customers complaint and suggestion.

According to my teacher, Toyota have found out that the american market actually don't care much for gas mileage, they care about POWER! He said that Toyota is trying to come out with a ELECTRONIC SUPERCHARGER for the Toyota Prius!!! NO BELT TO DRIVE IT!!! Why? Because that is what customers want. A faster car than the slow moving 0-60 seconds in ~15 seconds.

There are so many things I can talk about how Toyota is doing a good job on Hydrid technology that I just can't explain it all here of how they all work and such. But Mistsubishi took toooooo long to catch up with what people need and want in order to stay in business. Once you are too far back, you can't catch up.

 

[a6m5]

I think I agree with the YSSMAN's first post in its' entirety. Days of badass 3000GTs, Eclipse and Montero(maybe even Diamante) are gone. If I had a say in Mitsubishi Motors(MMC North America) restructuring, I would make these changes:

Raider(fullsize truck) - Gone. MMC aren't able to compete in the pickup market, and they aren't fooling anyone. Borrowing designs for trucks like Raider is just making MMC look bad.

Montero - Import on limited basis. Near-special order.

Endeavor - No change.

Outlander - No change.

Lancer Evolution - No change.

Eclipse - Make it smaller and lighter. Lose the convertible and V-6. Bring back Turbo(maybe AWD) for the top of the line models.

Galant - Aim for Ford Fusion, Mazda 6, not Camry or Accord. Something little bit smaller, but cheaper in the Midsize segment.

Lancer - No change.

There are few other changes that must be made in order for MMC to survive in the U.S.:

1) Bring down the MSRP. At this point, they have to bring in the customers to the showroom first. Consumers know that MMC cars are not Toyotas & Hondas, so stop pricing them comparably. They will shop MMC, only if the pricing make sense.

2) Add couple of mini-fuel saver cars to the line up. I'd do GEO Metro/Subaru Justy-type small car, plus Scion type(not tC) wagon.

3) Retrain the Dealers. I don't know about rest of the U.S., but in my neighborhood, MMC Dealers are losers. They have "L" attitude, and all the good MMC dealers wisely dumped MMC from their chains few years ago. Reward good customer service. If your dealers don't change, it will be tough moving your cars even if your products improve.

 

[YSSMAN]

^ Good point...

We just lost our second MMC dealer in Grand Rapids after it had been open for less than a year. The Fox group bought the rights to sell the cars, realised they werent selling, and dumped them for Kia.... Thats right, Kia!!!

The only MMC dealer is the same one that has been here for more than 20 years, Gezon Mitsubishi. But yes, their sales guys arent really the best. Sure, they know how to sell Mitsubishis on paper, but they don't want to make me want to buy one...

 

[GT4_Rule]

Dealers will leave an impression to the customer. Good or bad depends on how hard the dealer is trying and how they're treating the customers. Many makers still don't seem to get that, they rely on image of the maker many times *cough* MB *cough* I've read so many letters from Car magaizine about people complaining to the editor about MB's build quality and dealer service. The independent dealers need to set a moral standard for themselves.

 

[a6m5]

You probably know that I'm not a huge fan of Korean cars. But if I was a businessman interested in owning a dealership, which one do you think I would choose? Mitsubishi or Kia? No brainer.

With the crappy line-up MMC is coming up for the U.S. market, I understand that Mitsubishi dealers aren't going to have the best and brightest people selling their cars. But in order to jump-start their U.S. sales, I think MMC needs help from their dealers as well.

Edit:

The independent dealers need to set a moral standard for themselves.

Haha. You said "moral standard" about dealers. It's true to a certain point though. Successful dealers do make effort to treat their customers right. I've ranted about Beaverton Nissan in my town before. Nissan sold very well, last couple of years. But this dealer's service and parts service are so poor, that I have not met a single happy customer of this place. Every single one has something negative to say about it. That's pretty bad, and I wonder how long you will be able to stay successful, while treating your customers poorly.

 

[franz]

I think they are not smart enough
think about it ... they can be as competitive as Subaru
they have some great cars in japan
but they just never bring them into US territories
like new Colt .. it can be as good as Honda Fit
They had the VR4 for the galent, why not bring it over?
also we don't have any Lancer Evolution in Canada
I am sure there are lots of demand in Vancouver and Toronto
All I can say is they are lacking talent and motivation
we should do more research and see what the market needs

 

[Leonidae]

Mitsubishi needs some totally insane model in their lineup. truthfully speaking, Evo has lost it's taste. if they only would bring back the VR-4 2.5l V6 twinturbo Galant..

 

[GT4_Rule]

I agree on your statement, franz. There are lots of people who turn to WRX STi's because Evo is not available in Vancouver. Subaru is dominating the market that's shared between Evo and STi down in the States. Mitsubishi is losing the potential to earn some quick bucks here.

 

[a6m5]

Back in the 90's, we took family trip to Vancouver B.C. in our brand new Montero(you know, the good one ). People kept staring at it everywhere we went. I remember thinking; yeah, it's cool, but not that cool. Until some guy told my mom, they didn't sell Mitsubishis in Canada.

franz's comment on MMC being not smart enough. I think it's dead on. Too many bad decisions.

 

[GT4_Rule]

Talk about bad decisions. Mitsubishi is losing ground in its home country too; I've been following Japanes news closely and up until last year there were many news reports about Mitsubishi hiding recall notices on their Fuso trucks and cars. That damaged their reputation far worse than anything else, because, who'd want to buy and ride in a car in which a wheel might come off? That happened on one of the Fuso truck and the driver died 3 years ago.