Mitsubishi is facing an uphill battle in Australia and is facing the shutdown of its local production for good. Falling demand for large cars, a lack of a suitable export program and an uninspiring lineup have left Mitsubishi on the brink of extinction Down Under. The situation is so bad that auditors have described the situation as containing "significant uncertainty" after finding a net current asset deficiency of AUD$168 million in the financials for the small Aussie outcrop.
Mitsubishi only manufactures one model in Australia, the 380 sedan, which is basically a rebadged version of the American Galant. Most businesses with liabilities exceeding their assets would have to call it a day, sell whatever remaining assets are available, and pay off its creditors. However, Mitsubishi's Australian chief executive Robert McEniry has a confident outlook on the situation and has indicated that Mitsubishi will continue producing cars locally.
[Source: News.com.au]
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Reader Comments (Page 1 of 1)
Alex @ Sep 12th 2007 5:42PM
If it were not for the EVO and Eclipse, i'm prety sure the Triple Diamond (really a rhombus, but i digress) would be sunk here in the States too.
Brian W @ Sep 12th 2007 7:28PM
That's what people think but it's not the case. They are more visible but the other models sell more.
They already hit rock bottom, their sells have been gaining and they have more all new models coming.
Closing the Australia plant is what is best for the long run, not that I like to see people lose their jobs.
Tsunami Racer @ Sep 12th 2007 5:44PM
wow that aussie schnoze on the galant doesn't look half bad like that.
John P. @ Sep 12th 2007 5:56PM
It's so easy to see why they are dying. look at that thing! It looks like early 1980's stuff. Yuck!
Brian W @ Sep 12th 2007 6:55PM
Their other models are doing fine but the days of thirsty big sedans are dying.
They should have closed it years ago but they will be fine with their other imported new models.
Soon Australia will be all imports when the tariffs are lifted in a few years.
SPG @ Sep 12th 2007 7:00PM
Poor Mitsubishi, I hate to see car companies fail.
However I love hearing about the Hummer division of GM losing sales.
iamhoff @ Sep 12th 2007 7:29PM
They only make the 380/Galant down there? I thought for sure that they actually manufactured the Pajero/Montero down there, too.
gary @ Sep 12th 2007 9:42PM
Thats more than just a rebadge, they spent millions in order to widen/ stretch the US thing to move in to the larger car market. All they succeded in doing was handing the traditional magna/ verada buyer to Toyota and not gaining any new sales. They would of been better off spending that coin on a wagon version that they could of exported to elsewhere like they have done for the past 15ish years to some success.
NeoteriX @ Sep 12th 2007 11:14PM
So... they don't carry the Evo over there? That seems strange since the Imprezas seems to do so well over there.
Bryan @ Sep 13th 2007 12:02AM
Who was arguing with me the other day about how great Mitsubishi was? Hmmm????
Andrew @ Sep 13th 2007 8:08AM
The 380 was based on the US Galant, but the body was completely different (at the time). The new US Galant is pretty much the 380 re-badged not the way this article tells the story. Well this is my understanding anyway.
TriShield @ Sep 13th 2007 10:19AM
When I was in Australia I hardly saw any 380s. I'm surprised they still bother to assemble them there.
The Aussie auto industry is becoming less sustainable, which is why Holdens are being exported all over the world and to the US. Holden needs that volume. Ford Australia desperately needs a real export program too, they've already lost their engine plant and Aussie-engineered vehicle sales continue to drop.
Avinash machado @ Sep 13th 2007 10:43AM
Ford Australia could export the ute to the US where it could be badged the Ranchero.
Lee @ Sep 13th 2007 2:51PM
I think Mitsubishi is a car company being held back from greatness by a stodgy corporate culture. If only someone would let them take some chances and get serious about the way they market themselves. The potential is surely there.
Psychogun @ Sep 14th 2007 2:42AM
The article synopsis provided by Autoblog is misleading (lacking several important points).
Although still a nasty loss, the AU$118 loss is a 48% improvement over last year, indicating positive net cashflow.
Although sales of the 380 are down, overall Oz sales for Mitsubishi are up MTD and YTD (driven by imports of the Lancer, L200, Pajero, etc.).
If Mitsubishi move the production line to a GS platform, MMAL could theoretically build the Lancer/Outlander/Delica D:5, as well as the production version of the Concept ZT (streched GS platform and likely future Galant).
john @ Sep 28th 2007 8:59AM
Its a pity that there is so much uncertainty about Mitsubishi in Australia, considering what the car has to offer to consumers. What is more concerning is the pathetic manner in which they advertise and market the 380. So much is said about the car, however the message getting to the consumers through boring,bland, unimaginative themes and concepts have minimised their full potential as a alternative product for consumers. Ironically as per all higher management, blame is centered around other outside agencies and influences instead of the high paying not performing marketing exceutives. - just my thoughts!!, I could be wrong, then again I could be right