Australians buy just under one million cars a year, a tally that includes nearly every brand under the sun including several labels that even a market the size of the U.S. doesn't have. This means that local manufacturers have to compete with dozens of imports in a market that's roughly half the size of Toyota's annual production in North America alone.
Of the four major car manufacturers in Australia, GM Holden, Ford, Toyota and Mitsubishi, no one is doing it tougher than the maker of the cars with the Three Diamond badge. Mitsubishi currently builds the 380 sedan in Australia, a locally tuned version of the Galant sedan that's due to be replaced in 2011, but sales have been far below expectations due to tough competition. Unless sales improve the Aussie division will have to shutter its operations Down Under permanently.
To ensure production remains, management has to convince officials in Japan that a 380 replacement is a viable project. The problem is that current production levels won't support the local development of a new car and the movement away from large sedans in the Aussie market is only adding fuel to the fire. The most likely bet is an Australian version of a new global Mitsubishi large car.
[Source: Cars Guide]
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Reader Comments (Page 1 of 1)
Kenn @ Jul 12th 2007 4:11AM
Mitsubishi Australia made few critical mistakes in developing the 380 based on the US Galant. The 380 was developed only using the 3.8 V6 engine, as result of this they lost the budget concise customers, minimised the export opportunities. Toyota Australia got it right they are building two models based on the US Camry, one is 4 cylinder car called Camry (looks identical to the US Camry), the other is V6 model called Aurion with distinctive styling.
The factors effecting 380 sales are the 380’s 3.8 V6 engine is under powered compared to the competitors (Lack of the 3.8 Mivec engine found in the Raliart Galant), lack of safety features like Electronic stability control, curtain airbags..
It is good business proposition for Mitsubishi to build the next large car in Australia. The Australian plant is quite up-to-date efficient plant, which can produce around 100,000 units a year. Mitsubishi’s next large car will be a global car this will have more export opportunities (at least for all the RHD markets). If Mitsubishi gets it right with the design like the New Lancer & Outlander sales will only increase.
Other imported Mitsubishi models like the Outlander, Lancer (old model), Pajero, Triton….are selling very well. With the new lancer due in October Mitsubishi sales can only increase.
http://www.caradvice.com.au/3708/mitsubishis-booming-june/#commentlist
Brian W @ Jul 12th 2007 6:22AM
Mitsubishi has too many underutilized plants and needs to close that one. Mitsubishi needs to spend that money in other large markets with bigger returns. Imports are taking over the market and in 10-15 years there will be no more local built cars, it's just too expensive and there is no future there.
Stéphane Dumas @ Jul 12th 2007 10:47AM
Agreed, althought an other idea then I taught is to build a RWD Mitsu car for folks who wants a RWD but not the size of the Holden Commodore and the Ford Falcon with the 4L 2.4 standard, optionnal V6 around 3.0L and optionnal turbo-diesel engine.
Another option is this plant could also be use in a joint-venture with Peugeot-Citroen, if Peugeot plans to use Mitsubishi dealer network in the US http://www.autoblog.com/2007/07/04/enter-the-rumormill-peugeot-sedans-to-come-to-the-us/ why they couldn't built one or 2 Peugeot or Citroen models in Australia as well?
And their current plant is a bit historic, they inherited the plant in the late 1970s when Chrysler solded their Australian subsdiary to Mitsubishi (while Simca and Rootes was sold to Peugeot and their South America operations was sold to VW) http://en.wikipedia.org/wiki/Mitsubishi_Motors_Australia
Kenn @ Jul 12th 2007 5:41PM
You are right Mitsubishi inherited the plant from Chrysler. Mitsubishi invested $600 million in 2004 to upgrade the plant to build to build the 380. With that upgrade to it was in par with the US & Japanese plants. Australian plant could easily with minimum cost could build any of the 3 American built models (Galant, Eclipse & Endeavour), also it could be possible to build other new Japanese built models like the Outlander & Lancer.
Brian W @ Jul 13th 2007 6:26AM
It's still cheaper to build all those models in the U.S. than it is in Australia. Australia can't build the smaller cars they need cheap enough to compete. The tariffs will be off all imports to Australia soon, which will hurt their industry even more. The U.S. already builds the left hand drive models for 15 countries including Russia. There is just a lot better upside to invest in the U.S.
Kwesi @ Jul 12th 2007 7:47PM
i expect the aussie division to turnaround just like mitsubishi in every other part of the world. The endeavor/ eclips addition would be cool but would need to be backed by extensive marketing, as those models are currently us-only and were developed and designed specifically for that market. the aussi factory may cause the cars to cost more if they are ausie built, and that isnt good for business. I will wait and see, but before year's end, i expect to see mitsubishi Austrailia out of worries and enjoying major profits