Mitsubishi to bail on U.S.?
Mitsubishi has thrown down the gauntlet. If dealers can't sell its new products like the Outlander and Lancer, the company may pull out of the United States completely. Mitsubishi's product boss, Shinichi Kurihara said as much at a press event, indicating that the company's recovery rides on the success of the vehicles. The company is down 16.5 percent to 36,536 units so far this year, and its Normal, Ill. plant employs just one shift. Predictably, dealers have responded by urging Mitsubishi brass to open up their wallets and spend more money on advertising here in the States.
Meanwhile, Mitsubishi's May sales figures just arrived and the company posted a 3.9-percent rise in sales over May of 2005, which follows an even stronger 17.5-percent improvement last month over April of 2005. [Source: Automotive News via AutoWeek]
(Thanks to Emulous1974 for the tip)
Reader Comments (Page 1 of 3)
gbh 12:06AM (6/02/2006)
The answer is always the same: product, quality and service.
Hell, as long as you have an interesting product, the consumers will overlook the other two to a great extent.
Reply
Pinkerton 12:29AM (6/02/2006)
Don't let the door hit your arse on the way out.
Reply
Brian 12:40AM (6/02/2006)
Could the low sales have something to do with the fact that their current line up looks like it has been beat with an ugly stick.
Reply
WRC05 12:40AM (6/02/2006)
I think Mitsubishi will succeed in their restructuring plan becuase their recent products are of good quality, interesting, attractive, and competitively priced! I will suggest that they bring the GSX to market soon, as in yesterday! Good luck Mitsubishi !!!!
Reply
Greg 12:43AM (6/02/2006)
All I remember is that my ash tray, inside door handle and vanity mirror cover broke in my 2001 Lancer. And lets not forget all the rattles!! Nothing drives me crazier.
Reply
Jake 1:32AM (6/02/2006)
Have none of you ever seen the lancer evolution? That is a must buy on my list. I am still wowed when I see the eclipse and its spyder counterpart. Sure they have a couple ugly ducklings, but doesnt every car company?
Reply
Jon 1:39AM (6/02/2006)
I have a Mitsubishi made 2001 Dodge Stratus and I have nothing but problems with it. Motor mounts, wheel bearings, engine sensors, engine parts, A/C problems. Car has 90,000 miles.
Reply
Pat 1:47AM (6/02/2006)
Here in Japan Mitsubishi is at the bottom of the heap and subject to the same "death watch" as GM in the US. Pulling out of the US will just help the side into oblivion.
Reply
PJ 1:57AM (6/02/2006)
Well, as far as anecdotal evidence goes, I bought a 2001 Mitsubishi Eclipse GT used and haven't had a single problem with it in 55,000 (hard-driven) miles.
Anyway, I sincerely hope Mitsubishi makes it in the NA market. The new Outlander shows promise, as goes the next Lancer. But most of all, I just want the Evo to be here in case I can ever afford one...
It's too bad that Mitsubishi keeps spoiling its essentially sound products with poor planning and marketing decisions. The Galant, for example, is really quite a good car, but has no folding back seat... and the Ralliart doesn't offer AWD or a manual transmission (despite other vehicles based on the same platform offering them). Stupid, simple mistakes that ruin an otherwise appealing sedan.
There are spots of brilliance in Mitsubishi's lineup that have me hoping they'll make a turnaround (the Lancer Ralliart, aforementioned Evo, etc). But the new Eclipse certainly isn't going to do it, or the Raider... it really all depends on the advertising and the upcoming product releases.
Reply
Mitsufan 3:27AM (6/02/2006)
READ the article, folks. All that was said was "We need our products to be successful to stay in business." Isn't that true of any automaker?
If Mitsu were leaving the U.S., why the new product? Why build a new Eclipse here? Why send over the new Outlander? Why waste time and money tooling up for new production? Why send over a new president -- and the head of overseas operations at that? Why not send a clean-up crew?
Why did Mitsubishi do all these things? Because Mitsu isn't going anywhere.
To be a global automaker, you have to be in the US market. Period. Even if it hurts for awhile. Mitsu knows this. Yes, Mitsu has had some problems in the states. Yes, they're getting fixed (see the sales figures for this year?). No, everything is not going to get better at once. The product is better than ever, and once they drop some of the slacker-dealers, they will have a name to be proud of once more.
Reply
ShureF00t 4:08AM (6/02/2006)
Bring back the Diamante. Resurrect the 3000GT. Drop a turbo inline-4 into the Eclipse with AWD--yes, I know that would conflict with the Evolution, but so what!
Reply
Zing Zing 4:33AM (6/02/2006)
Mitsubishi: you deserve to go out of business. Frankly, I will feel bad for all of the American employees losing their jobs over this, but it is Mitsubishi headquarters' fault for this all happening.
My best friend's mom is from the Phillipines and she absolutely despises Mitsubishis because when she was growing up, and even today, all she can think of is Lancers and how big of pieces of garbage they are. She explains it as though there are two kinds of cars there: nice cars and Mitsubishis.
Mitsubishi will never succeed because it has a flawed business model. They can't compete with the other brands by beating them at their game. If Mitsubishi wants to win over hearts and minds they need to be DIFFERENT, not more of the same. If you're about to bail out, why not try to save a sinking ship by importing products like the Swift? Also, you could try heavy heavy marketing to minority groups like gays and immigrants. Although, it'd be smart to change you're anti-gay policies before doing so. Afterall, gays buy way more cars than 36,000 units by June of every year.
It's funny though. People think Hyundais are garbage today, when they are really some of the absolute best cars made. The reason why they were so bad back in the day was because they were just old Mitsubishi models made by someone else. Nowadays, Hyundai is sitting at the table with the big kids. Ultimate poetic justice, eh?
What would the world be better off with? Mitsubishi going out of business because they tried to sell re-badged Dodge trucks and bland midsize cars, or a healthy Mitsubishi that only sells small cars like the Swift?
Reply
Tyre 4:53AM (6/02/2006)
You can't appeal to a market that is dominated with other products that last longer, put out more performance all while getting better gas milage. Grated the driveability of an evo is great, but who wants to pay up to $40K for it?
It's basic Economics! Quick, Cheap, or Reliable... Pick any Two. Well with Mitsubishi, just like so many other (Dead or Dying) car companies, you only get your choice of one, and that's just not going to cut it in a global economy driven by bargain buyers, or reliability seekers. Beyond the 16-24 market place Mistubishi just doesn't have a presence. It's sad to see another manufacturing company go by the way side (For the blue collar employees sake, not for the CEO's) but that's life.
If a fish gets to big it becomes an easy target for fishing, if it gets to little is becomes an easy target for sharks.
It looks like Mitsubishi, has just been spotted by a shark.
Reply
Pit 5:47AM (6/02/2006)
Globally, Mitsubishi has enjoyed a strong reputation as an SUV manufacturer.
Reply
Razib Ahmed 6:11AM (6/02/2006)
Mitsubishi bosses shoud really open up their wallet for some extra promotion. They should spend more on online advertisements. These days, most car buyers do some research in net before buying anything.
Reply
bob 7:31AM (6/02/2006)
Its about time we lose a foreign car company in the USA. I feel we are losing ground to foreign cars and to lose Mitsubishi wont be too much of a loss anyways. Go we dont need you here.
Reply
edwin 7:34AM (6/02/2006)
Mitsubishi bombed Pearl Harbor. Later, the defense of the Japanese empire rested on their shoulders, and look what happened. Mitsubishi: crap then, crap now.
Reply
Mario 7:52AM (6/02/2006)
Edwin, Funny how hidden racism emerges on the internet.
Reply
Cameron 8:19AM (6/02/2006)
I agree with Shuref00t. They need to revive the 3000gt.
Reply
epilonious 8:27AM (6/02/2006)
Poppy Z Brite said: In Internet jargon, there is a phenomenon known as "flouncing." The flouncer is never content to simply leave a message board or discussion forum he finds disagreeable; he must conspicuously announce that he is leaving, detail the inadequacies of the other posters, bemoan the cruel treatment he has received, and, likely as not, sneak back to check the reactions to his flounce. Usually these reactions boil down to "Don't let the door hit your ass on the way out."
My impression of Mitsubishi is that their only unique car is the Eclipse.... otherwise, they seem to be reeling from lots of bad decisions: Truck-based SUV's in the wake of higher gas prices... Trying risky financing maneuvers right before an economic recession that sent Daimler-Chrysler packing... and finally an array of dull bland-mobiles attempting to beat out honda and toyota that are unimpressive in base trim or ludicrously priced/powered for a 'Ralliart' model. The Lancer Evolution is a distillation of this insanity: Excellent AWD system, a 2.0 litre masturbated north of 270HP, functional scoops and vents, adjustable yaw control... until you get in one and realize it feels like a base model old corolla that just happened to have a lot of crap snuck into it at the factory.
So, instead of bringing over some of their nifty smaller cars, or otherwise trying to figure out what is so unattractive about the majority of their cars... they bitch out their dealers? Pinkerton (#2) summed up what will most likely be America's reaction should Mitsubishi continue with their little tantrum.
Reply