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Old 8th July 2008, 02:05   #1
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Default Mitsubishis U.S. plan hits brakes.

While itís not alone in posting falling sales in 2008, Mitsubishi is in bigger trouble than other manufacturers, with only one car in demand, the fuel-efficient Lancer in short supply. While the automaker posted an 8.8 percent sales increase in 2007 ó its first since 2002 ó the 2008 year-do-date results are down 42.4 percent in June.

The automakerís U.S. turnaround plan, was criticized for being too stringent. high prices, a low ad budget and little choice in the showrooms are reasons for the slowing sales. The few products they have to sell are aging and based on old technology.


The only new vehicles coming to Mitsubishi this year is the 237 horsepower Lancer Ralliart, made to compete with Subaruís WRX, with the Lancer Sportback due to arrive in the Spring of 2009.
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Old 8th July 2008, 11:11   #2
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Certainly bad news. Internet grapevine states that Mitsubishi will go the Isuzu way in the US market.
Suzuki was also rumored to leave the US market.

This is bad news as the products from Mitsubishi are not really bad.
Lancer is the car, that we can say almost single handedly saved Mitsubishi.
And the fact that Lancer is in short supply is the worst possible thing for Mitsubishi's US operations now. Although the short supply is a nice problem to have as this goes on to prove how good the demand is, it can also work as negative increment for the company.

Add to this the relatively better availability of Hyundai / Honda / Toyota models of same segment.

I do hope that they are able to come out of the problem.

O.T.
Mitsubishi Ralliart:
Spy Shots: Mitsubishi Lancer Sportback Ralliart sneaks out ahead of Paris show - Autoblog

Last edited by aaggoswami : 8th July 2008 at 11:24.
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Old 8th July 2008, 12:44   #3
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Bad news indeed. Mitsu is anyway languishing in India as well..Mitsu is coming out with an electric car in india by 2010 ..let us hope that revives some of it's fortunes AutoCrust: Mitsubishi i MiEV Electric car in India by 2010
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Old 8th July 2008, 13:01   #4
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Overall Mitsubishi US sales are down 23% during Jan-Jun 2008 to 53883. Sales of nearly all have declined.
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Old 8th July 2008, 13:22   #5
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Don't know how small players like Mitsubishi will survive the US car market slide. In 5 years, the sales have dropped by 5 million cars and the last year or so has seen a drop of 2 million cars.
Should be a interesting year to come with consolidation in terms of mergers and de-mergers.
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Old 8th July 2008, 15:42   #6
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Quote:
how small players like Mitsubishi
Small is the key word here; it is truly impossible for a small (relatively) car company like Mitsubishi Motors to match the financial power of giants like Toyota. Heck, Mitsubishi doesn't even have the money to invest in new products...forget everything else. The Montero, as much as I am a fan of it, is a soft reskin to an SUV that is a decade old!! We may like the new Lancer (a.k.a. Cedia), but it is seen as a econobox the world over. And one with poor quality, service and resale. Mitsu simply cant spend as much on research & development of products as a Honda or VW can. Neither can they equal the sales, distribution and marketing muscle of the big boys.

This is precisely why we have seen mega consolidation in the automobile industry. Mitsubishi have a problem here too.....they don't have anything to offer in a takeover. Even Daimler walked away from them. A truly dismal situation for a maker of some really great cars.
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Old 8th July 2008, 16:08   #7
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I hope that the management at M&M is in touch with this info.

They have some high hopes of playing in the U.S. market, but if a big company like Mitsubishi is getting squeezed over there, why would they fare any better?
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Old 8th July 2008, 17:16   #8
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Mitsubishi, in india has also stuck to a wrong policy. They continue to sell more than decade old models- LANCER & PAJERO. While their competetors bring in a new model every 4 years.
But so few models in U.S should actually help them in restructuring plans , as they dont have to think of cutting or selling non performing units, as G.M. or FORD are having to do.
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Old 8th July 2008, 17:20   #9
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The Lancer is doing pretty good here. There is a shortage of supply I believe. The Galant is a royal flop and deserves to be. What an ugly car...I'll buy a Sonata any day.
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Old 9th July 2008, 00:36   #10
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Quote:
Originally Posted by Mpower View Post
The Lancer is doing pretty good here. There is a shortage of supply I believe. The Galant is a royal flop and deserves to be. What an ugly car...I'll buy a Sonata any day.
Lancer sales are next to nothing in India (by international sales volume standards). In fact the Lancer sales in India are so pathetic, they probably make Mitsubishi lose money.
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Old 9th July 2008, 00:47   #11
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Quote:
Originally Posted by GTO View Post
..A truly dismal situation for a maker of some really great cars.

Yup. They're in the wrong place in the wrong century.
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Old 9th July 2008, 00:53   #12
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Lancer in its hay days in india was competition to honda city, but honda now is all set to bring in their 3rd. gen. city & good old lancer's still hanging on. It was a nice product but has outlived itself. Cedia which is newer gen. of lancer, never made it to the sales charts. People were sceptical of its high parts prices , which has always plagued mitsubishi, be it pajero, montero or lancer. On top of it cedia never had a diesel powerplant, with which , it could have easily dominated the segment.
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Old 9th July 2008, 02:23   #13
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Mitsubishi is one of the most innovative auto companies around, as seen from the fact that it was the first automaker in the world to introduce Direct Injection in gasoline engines for their road cars. They called it GDi (Gasoline Direct Injection) and now its being popularized by companies like Audi, BMW, and even GM.

It's sad to see such a company losing money in a big market like North America.
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Old 9th July 2008, 09:26   #14
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Quote:
Originally Posted by bhp1 View Post
Cedia which is newer gen. of lancer, never made it to the sales charts. People were sceptical of its high parts prices , which has always plagued mitsubishi, be it pajero, montero or lancer. On top of it cedia never had a diesel powerplant, with which , it could have easily dominated the segment.
Very good point. The other reasons for Cedia not setting the charts on fire:
a) Initial pricing /positioning in the Civic/Corolla was wrong. They should have targetted the segment between Honda City Vtec and Civic/Corolla straightaway
b) Poor marketing/brand recall - How many people are aware of a Mitsu car called cedia as opposed to city/civic/verna etc..How many are aware there is an ALPG variant in cedia which should be great VFM?
c) HM!! - Less said the better!!
But you are right. Diesel Cedia could have been a killer.
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Old 9th July 2008, 11:52   #15
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That is really disheartening....

So if there are plans on getting an EVO in the US ..should we hold back
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