![Gran Turismo 5 demo coming to PSN on Dec 17, GT Academy returns [w/VIDEO]](http://www.blogcdn.com/www.autoblog.com/media/2009/12/370z-gt-academy_143x85.jpg)
Mitsubishi turns a profit for the first time in four years
In recent years, Mitsubishi's cross-town counterparts, Honda and Toyota, have been racking up record sales and profits, with the former showing steady growth, while the latter is taking over the world. Unfortunately, the tri-diamond folks haven't been fairing nearly as well. Mitsubishi has been in the red for four years now, mainly due to lackluster products (EVO aside) and a number of scandals that involved cover-ups and quality issues.
As of yesterday, that's all changed – well, at least the automaker's bottom line. For the first time since the fiscal year 2002 (ends in March), Mitsubishi has turned a profit of 8.7 billion yen or $73 million US. The reason for the turnaround stems from a weak yen and an annual sales increase of around four-percent.
Hopefully, that incremental growth on Mitsu's part can be sustained and from what we've been told by the automaker's execs, sales of the new Lancer are a big part of it. If Mitsubishi can extend some of that mojo across its lineup, DSM fans will have a reason to rejoice, again.
[Source: AP via Boston Herald]
Reader Comments (Page 1 of 2)
sl8anic 8:16AM (4/27/2007)
Yeah, hopefully no more "what crankshaft walk?"-like coverups ala 2nd gen DSM engines.
Reply
jgp 8:24AM (4/27/2007)
This is one of the greatest turnarounds in automotive history.
Wasn't Mitsubishi considering pulling out of the US and Australia last year? Going from being that deep in the hole to turning a profit is simply impressive.
Reply
The Other Bob 8:58AM (4/27/2007)
Bummer. There are too many car makers in the American market. Someone is going to go out of buisness and really Mitsu going under would be no loss.
Reply
pd 9:19AM (4/27/2007)
This company would never go under they were propped-up by the JAPANESE GOVERNMENT!!! If they were a U.S. company they would already be out of business.
Reply
Mike 9:25AM (4/27/2007)
In other news, all their vehicles but the EVO are still worthless...more at 11.
Reply
(_E=mc2_) 11:34AM (4/27/2007)
# 4 No, Chrysler would have been history long ago if the US government had not supported them with loans.
Reply
Ron 9:42AM (4/27/2007)
#5 Agreed. When's the last time you saw a late-model Galant on the road? I bet it's been over a year for me.
Reply
Alex 9:53AM (4/27/2007)
Thank you for piping in, Subaru fanbois.
I have had a great experience leasing a 2003 Mitsibishi Outlander for 4 years. Loved that little SUV. Never ever had anything go wrong with it, not even a slightest failure. It had a sense of simple but purposeful quality about it.
Once got rear-ended (at low speed) by an Accord, and there was nary a scratch! Didn't even call in the police/insurance (the Accord's front facia cracked though, but it was her fault).
I cross-shopped it at the time against Honda CR-V and Toyota RAV4, but the little Mitsu had a soul about it, it drove so well.
Mitsubishi's problems were marketing ones, not product ones. In order to increase sales they've allowed in people with bad credit to buy their automobiles.
Reply
stefan 9:54AM (4/27/2007)
@5
Wath abouth the outlander and normal lancer there is nothing worthless about them.
Reply
ello 9:56AM (4/27/2007)
Actually the new Outlander and new Lancer can pretty much go with anyone in their class which includes Rav4 or CR-V for the Outlander and Mazda3 or Civic for the new Lancer. They make high quality cars which has been backed up by recent statistics, they rank up there with Honda and Toyota, what kills them in US is lack of imagination in the marketing department. They have plenty of rally experience, neither Nissan, Toyota, Honda, or Mazda can show as much success in the world of motor sports especially rallies whether it's an Evo or Pajero.
Reply
Rick Lyon 10:27AM (4/27/2007)
I think Isuzu or Suzuki would bow out of the US market before Mitsubishi would (and I dislike Subarus too)
Reply
jim3480 10:29AM (4/27/2007)
Mitsubishi makes worthless vehicles??
Oh contraire, my friends. I have owned a Galant ES V6 since 2000 and it has been bullet-proof. No problems - no rattles - nada. It now has nearly 120K miles on it and I going to trade it in and get the new Outlander XLS. Compare the Outlander to CRV or RAV4 and there is no comparison - it blows them away.
Bottom line is, Mitsubishi did take their eyes off of the ball in the 2002-2006 timeframe and it nearly killed them. The most recent Galant platform is fugly and umcompetitive, no doubt about it. But now...the EVO, Lancer,Eclipse and Outlander are huge steps in the right direction to get back in the game as a profitable niche player that offers alternative, fun-to-drive vehicles that you don't see constantly on the road like you do with Honda, Toyota, Lexus, BMW, Infiniti, M-B..etc.
Long Live Mitsubishi!
Reply
roadside observer 11:24AM (4/27/2007)
$73 million profit? That's not much. I have to wonder if Mitsu would have even turned a profit if the Japanese government did not have an ongoing monetary policy of depressing the value of the yen.
Reply
Jay 12:16PM (4/27/2007)
I thought the new EVO was supposed to have some amazing bits of computerized anti-yaw control, ASC, etc…You would think some leveling control would be included. I’ve seen minivans with less body roll than this thing.
But I still like it.
Reply
bamtastic_boi 1:10PM (4/27/2007)
I remember bozos posting a few years ago that Mitsu would pull out of the US and shut down their plant in Normal, Illinois. Well it is now those years later and Mitsu is still here while their turnaround plan is an ongoing sucess (with the exception of the Raider). Kudos to Mitu, I would rather put my money on you guys than on any domestic brand. BTW, the new EVO looks amazing!
Reply
NeoteriX 12:54PM (4/27/2007)
"2. This is one of the greatest turnarounds in automotive history."
Not so fast. A turnaround needs to be *sustainable*. Mitsu still needs to feel like there is a flame lit under their asses for the next half a decade or so (at least until the new product cycles refresh for all of its lines) for anyone to legitimately breathe a sigh of relief.
Reply
Ols 1:31PM (4/27/2007)
Don't forget the L200 pick-up - the best seller in its class for years and a good money spinner for Mitsubishi, while the Grandis MPV is apparently a best seller in Japan too.
I'm glad to see they have made something of a turnaround. I am a fan of the Colt here in Europe and the new Outlander isn't a bad effort either.
Plus for the future, Mitusbishi must have practically fallen of their chairs when they saw the Impreza they are going up against with the Evo - so I suppose the only way is up now...
Reply
waLLy 1:00PM (4/27/2007)
'05 Lancer owner here. Yeah, it's pretty boring looking. Yeah, it's got overhang in the front that would make an Ion blush. And yeah, the entire dash is a bit too spartan for my taste.
But it eats Civics, Sentras and Corollas for breakfast. It's 1.5 years old, has 50K on it, and I haven't had one mechanical problem yet. Huge cabin for the size, with lots of room. Mind you, this was not the car that I wanted to buy a couple Septembers ago, but it came with everything I wanted and was well within my price range. It has become a car that I really love.
The only thing that routinely irks me about the vehicle is that the rear seats don't fold down. I didn't know they still made compacts without that.
I'm surprised by how much I want an '08 one now.
Reply
carl ryan 3:24PM (4/27/2007)
had 5 mitsu's in my life... and never had 2 lift the bonnet once...was strongly thinking of switching 2 another japanese car company if they didn't turn the company around....well they have certainly done that...brought in european designers...end product colt L200 lancer outlander and a few tweeks 2 the padjero....a 100% markup on the old fleet...cant wait 2 see the new EVO in the flesh..was reading jeremy clarkson lately and after he saw the new subaru...he commented...15 yrs of butt ugly cars
Reply
Geoff Gibson 4:03PM (4/27/2007)
I love Mitsu. I currently have an Eclipse but I will be trading that in for an 08 Mistu Lancer in the next couple of weeks. The car is downright sexy. In my list of car companies that I could care less about Mitsu is not one of them. I'd be saddened if they ever left the U.S. market, importing cars is way expensive.
Also to the person who asked when the last time somebody saw a current version Galant on the road. I just looked out my office window and saw two of them in the parking lot. I see them driving on the streets of Los Angeles/OC all the time. They aren't the most popular cars but they aren't rare either.
Also the Raider is a nice truck. Its built off the Dakota platform so its sturdy enough. The biggest problem with it is people have a hard time believing that Japanese trucks can really "put out". I havea Raider to tow my quads around and its more than capable of towing the 5000lbs with an extra quad in its bed.
Reply