- Jan 26, 2010
Report: Mitsubishi looking to claw back to 100,000 sales in U.S. in three years
When the healthy catches a cold, the sickly contract the flu. Over the past few years, Mitsubishi has been suffering from a degenerative case of bronchial pneumonia, with a side of strep and a nasty rash. In other, less contagious words, Mitsubishi has been faring very poorly during the industry's worst downturn in decades, and it's tough to say if the struggling Japanese automaker will ever leave the intensive care unit.
But to listen to John Koenig, executive vice president of Mitsubishi North America, that will all change over the next few years. Koenig has told Wards Automotive that he sees Mitsubishi hitting 100,000 sales in the U.S. within three years. Mitsubishi only sold 53,986 vehicles in 2009, down 44.5 percent compared to a still depressing 2008, and that's only one sixth of the Japanese automaker's 345,111 U.S. sales in 2002. Koenig says he's had to reassure dealers that Mitsubishi isn't leaving the North American market, adding "that's probably their biggest fear, because they're reading about it in various journals."
To get out of its sales rut, Mitsubishi plans to bolster sales with the help of the 2010 Outlander, a vehicle that we found to be pretty entertaining and capable. Koenig also points to the current Lancer as another vehicle that could help turn sales around.
Will Mitsubishi return to sales of 100,000 units a year in the States? It's difficult to say, really, but given the automaker's performance over the past few years, we're not all that optimistic. The good news though is that most sales problems can easily be cured with good products, and if the Outlander is as good as we think it is we're thinking, Mitsubishi has a shot at staying relevant – though they had better be readying a few new cannons in their arsenal.
[Source: Wards Automotive – sub. req.]
[Source: Wards Automotive sub. req.]
Mitsubishi Motors North America is setting its sights on a return to 100,000-unit sales in a calendar year, after suffering a severe drop in volume in recent years, a top executive says.
"I'd say (we'll hit the mark) probably within three years," John Koenig, executive vice president-MMNA, tells Ward's during his recent visit here.
Mitsubishi sold 53,986 vehicles in the U.S. last year, 44.5 from 2007, which was the last year the auto maker exceeded 100,000 units, with 128,993 deliveries, for an 8.8% gain on 2006.
Mitsubishi's U.S. volume was 345,111 as recently as 2002, but sales quickly tumbled due to fallout from a 0% financing scheme concocted by former MMNA CEO Pierre Gagnon. Many of the subprime takers of the offer defaulted on their loans.
Koenig blames much of Mitsubishi's 2009 loss, one of the U.S. industry's worst years, on a sharp reduction in the number of vehicles sold to daily rental companies, primarily made up of Galants and some Lancers.
While the auto maker intends to continue fleet sales, it will do so in "a very small way," he says.
Instead, Mitsubishi is focusing on building retail sales, which Koenig and other executives know is not easy for a low-profile brand that has found itself at death's door, both here and in Japan, in recent years.
Refreshed '10 Outlander to boost sales.
"We've assured (our dealers) we're not leaving the North American market," Koenig says. "That's probably their biggest fear, because they're reading about it in various journals."
Some progress to reverse Mitsubishi's decline was made late last year, he notes, with sales of 4,357 vehicles in December building on November's 2,923.
The auto maker expects most of its near-term retail growth to result from marketing efforts for the Lancer compact car and '10 Outlander compact cross/utility vehicle, as well as select new vehicles.
"They are very competitive compact products in their segment; they're feature-packed," MMNA spokesman Maurice Durand says of the Lancer and Outlander. "We have to work hard to enhance their perception and desirability."
Koenig admits Mitsubishi has "neglected" to properly promote its Lancer Sportback variant, which launched last year and says the car will be the focus of marketing efforts this year, along with the refreshed Outlander.
Dealers have been clamoring for Mitsubishi to get back into advertising, and this year the brand has purchased spots on network TV, as well as cable channels ESPN, HGTV and Animal Planet, Koenig says.
Dealers also have been anxious for new product, and Koenig says they have come away impressed after seeing some of what's in the pipeline.
This includes a version of the RVR compact CUV, going on sale here this fall. The CUV slots below the Outlander in size and will feature a 2.0L 4-cyl. engine and other fuel-efficiency efforts, including Mitsubishi's first application of electric power steering.
The production RVR, which will bear a different name for the U.S., will be unveiled at the New York auto show in April.
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Mitsubishi's well-publicized foray into electric vehicles also will bring the i-MiEV small car to the U.S. in 2011.
MMNA CEO Shinichi Kurihara cautions volumes will be small, with sales dictated by infrastructure readiness. "We cannot spread nationwide from the first or second year."
Two years after i-MiEV's launch, Mitsubishi is planning to bring the production version of the PX-MiEV unwrapped at last year's Los Angeles auto show. The plug-in hybrid CUV is expected to overlap the Outlander in size, Durand says.
MMNA also is considering bringing the Japanese-market "i" minicar, on which the i-MiEV is based, as well as the next-generation Colt subcompact. The Colt, assembled in Europe, Japan and Taiwan, is set for a redo in 2012.
The auto maker is hoping this new range of product will attract buyers from defunct U.S. brands, such as Pontiac. Kurihara sees Pontiac's brand image similar to Mitsubishi's, as both have a youthful and sporty-driving slant.
The CEO says he intends to make sure Mitsubishi's image maintains its appeal "to the younger people...that's my goal."
Kurihara says the average age of the Lancer and Outlander compact lineup is 35, relatively young for the mature U.S. market.