Maybe they should platform-share with someone. I'm not sure who, and beyond brief flurries with Daimler and Volvo I'm not sure if they have any current partnerships, but even if they half-assed a compact sedan with someone it'd probably end up being more competitive than the Lancer, simply by virtue of it being newer.
I've heard FCA is looking for a buddy! Or partner up with another brand that could use the cash, Mazda?
Otherwise, I absolutely agree. It isn't as if Mitsubishi hasn't had at least a few innovations to share over the years, I'd assume their AWD system is worth some investment, let alone the EV tech. I certainly could see a situation where FCA could benefit quite a bit from some off-the-shelf bits/bobs to throw on a C or D segment vehicle to make a passable EV option for the US. Furthermore, I'd think that their manufacturing capacity would be something to go after, let alone the success that the Mirage has been as a cheap entry point vehicle internationally - particularly in Southeast Asia. I could certainly see a world where Mitsubishi re-skins a M3 and M6 to serve as Lancer and Gallant replacements, although what exactly Mitsubishi would have to give to Mazda here seems a bit of a stretch.
If I'm running Mitsubishi, I'm doing the following:
1. Leveraging as much as I can on the Mirage, right now. Update the interior a bit, figure out a way to add at least one, maybe two more configurations to the car to bring in more buyers. The car seems to have found its niche in the US, there has to be a way to expand it. I'm definitely in favor of doing a VW-like "Cross Mirage," adding some cladding and a little more ride height to make it look like an off-road vehicle. Steal some potential crossover sales without designing a crossover... While at the same time, doing everything they can to develop a crossover based on the Mirage. A lightweight, fuel-friendly, "capable" model could do well in the US, and I don't know if it'd eat into sales of the Outlander all that much
2. Partner with FCA to do two things:
A. Take the chassis from the Dart, make yourself a new Lancer/Gallant replacement. I think if it were Dart-sized, you could get away with calling it a Lancer replacement in the US, while internationally, it could easily slot in as a Gallant. I wouldn't use the same names, as I think it is time for the company to move forward, but its a great starting place. With the right styling, and AWD, I think it could easily find its place in the market
B. Give their EV tech to FCA to do a wider variety of EV vehicles in the US. An EV Dart or 200 makes a lot of sense, just the same, an EV version of that Lancer replacement. At the right price, like the iMEV has been, they could gain find a good place in the market for themselves
3. Bring in some kind of halo vehicle, any kind of halo vehicle. I don't even think it necessarily has to be a high-performance vehicle. Without the GTO/3000GT, Evolution, or hell even the Montero/Pajero (in the US), they've lacked the corner pieces to what had otherwise established them as an alternative to the Honda/Toyota/Nissan corner in the '80s and '90s. Yes, crossovers are king, but I think there is a place for a well-done sedan, sports coupe, or even a full-size SUV to take some attention away from their main competitors. The hard part is that the market is leaning so hard on crossovers, its hard to imagine them doing anything other than that - But there is certainly some room for a legitimately capable, and affordable, off-road crossover. The Ford Explorer kinda sits alone there, being a weird alternative to the Jeep Grand Cherokee, while doing its best to imitate the Range Rover. Why not a Mitsubishi that does the same? Although the Montero name may be tarnished a bit in the US, they could certainly make Pajero work - And with a properly done interior, looks similar to what's going on the the Outlander Sport, and a truly capable setup, there's bound to be sales to be had