Mitsubishis U.S. plan hits brakes.

bhp1 · 8th July 2008, 02:05

While it’s 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 — its first since 2002 — the 2008 year-do-date results are down 42.4 percent in June.

The automaker’s 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 Subaru’s WRX, with the Lancer Sportback due to arrive in the Spring of 2009.

aaggoswami · 8th July 2008, 11:11

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

sridharps · 8th July 2008, 12:44

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

vasudeva · 8th July 2008, 13:01

Overall Mitsubishi US sales are down 23% during Jan-Jun 2008 to 53883. Sales of nearly all have declined.

srishiva · 8th July 2008, 13:22

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.

GTO · 8th July 2008, 15:42

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.

RedMM340 · 8th July 2008, 16:08

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?

bhp1 · 8th July 2008, 17:16

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.

Mpower · 8th July 2008, 17:20

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.

RedMM340 · 9th July 2008, 00:36

Quote:

Originally Posted by Mpower

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.

theMAG · 9th July 2008, 00:47

Quote:

Originally Posted by GTO

..A truly dismal situation for a maker of some really great cars.

Yup. They're in the wrong place in the wrong century.

bhp1 · 9th July 2008, 00:53

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.

sujaylahiri · 9th July 2008, 02:23

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.

sridharps · 9th July 2008, 09:26

Quote:

Originally Posted by bhp1

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.

raajks · 9th July 2008, 11:52

That is really disheartening....

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

8th July 2008, 02:05	#1
bhp1 BANNED Join Date: Jul 2008 Location: NA Posts: 513 Thanked: 4 Times	Mitsubishis U.S. plan hits brakes. While it’s 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 — its first since 2002 — the 2008 year-do-date results are down 42.4 percent in June. The automaker’s 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 Subaru’s WRX, with the Lancer Sportback due to arrive in the Spring of 2009.
	() Thanks

8th July 2008, 11:11	#2
aaggoswami Senior - BHPian Join Date: May 2007 Location: Vadodara Posts: 4,982 Thanked: 2,931 Times	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.
	() Thanks

8th July 2008, 12:44	#3
sridharps BHPian Join Date: May 2008 Location: Bangalore Posts: 400 Thanked: 16 Times	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
	() Thanks

8th July 2008, 13:01	#4
vasudeva Senior - BHPian Join Date: Mar 2007 Location: Delhi Posts: 2,221 Thanked: 212 Times	Overall Mitsubishi US sales are down 23% during Jan-Jun 2008 to 53883. Sales of nearly all have declined.
	() Thanks

8th July 2008, 13:22	#5
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	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.
	() Thanks

8th July 2008, 16:08	#7
RedMM340 BHPian Join Date: Apr 2008 Location: on the move Posts: 457 Thanked: 34 Times	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?
	() Thanks

8th July 2008, 17:16	#8
bhp1 BANNED Join Date: Jul 2008 Location: NA Posts: 513 Thanked: 4 Times	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.
	() Thanks

8th July 2008, 17:20	#9
Mpower Senior - BHPian Join Date: Mar 2005 Location: Bangalore Posts: 10,409 Thanked: 1,730 Times View My Garage	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.
	() Thanks

9th July 2008, 00:53	#12
bhp1 BANNED Join Date: Jul 2008 Location: NA Posts: 513 Thanked: 4 Times	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.
	() Thanks

9th July 2008, 02:23	#13
sujaylahiri BHPian Join Date: Apr 2006 Location: North America Posts: 960 Thanked: 6 Times View My Garage	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.
	() Thanks

9th July 2008, 11:52	#15
raajks BHPian Join Date: Aug 2005 Location: BLR Posts: 578 Thanked: 119 Times View My Garage	That is really disheartening.... So if there are plans on getting an EVO in the US ..should we hold back
	() Thanks