Negative selection: Mitsubishi leaving the American market

Negative selection: Mitsubishi leaving the American market

FineAuto

Despite sales growth last year, the Japanese brand may leave the United States because the total volume of business in the region remains modest, as well as revenue from it. Non-priority markets as Europe and China.

In April, the Alliance Renault-Nissan-Mitsubishi announced a new strategy of dividing up the world between brands. Mitsubishi in the carve-up went to Southeast Asia (АSEАN) and Oceania (includes Australia and New Zealand), here the role of the “three diamonds” in the Alliance will be dominant, but the plans for the rest of the regions outlined last week by the CEO of Mitsubishi Motors Takao Kato under the annual meeting of shareholders.

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Top Manager, who was quoted by Automotive News said that Mitsubishi will reduce business Makarenko such as Europe and China, and later the company said that the American market is also out of the focus of attention of Mitsubishi, as it was not possible to achieve the desired success. The new strategy called Selection and Concentration (selection and concentration), it replaced the Drive for Growth (drive for growth), which is at the corner just in the United States and China.

According to Mitsubishi, its sales in the U.S. last year amounted to 121 046 cars, which is 2.5% more than in 2018. meanwhile, data for the fiscal year, which ends in March, North America in General is not so rosy: fall by 8% to 160 thousand cars. The first quarter of 2020 in the US ended in the fall by 15.5% to 35 563 sold cars – indeed, a very modest figure for the country, where only one Toyota RAV4 for the first quarter found 97 631 of the buyer.

From its plant in Normal, Illinois, Mitsubishi got rid of in 2015 – they are now owned by electric mobility startup Rivian. The current us product line is, in fact, only four models – the platform of the Outlander crossover, Outlander Sport (aka ASX), Eclipse Cross and the subcompact Mirage (hatchback and sedan). New Outlander, which is expected to premiere this year, will become a technical twin of the Nissan Rogue/X-Trail, this means that aggravated competition within the Alliance – in fact, the division of the world and needs to resolve it.

The final decision about America is still pending, but to be honest, we don’t see any reasons to make Mitsubishi stayed here for the region in the Alliance is now in charge of Nissan.

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With Europe, at the end of the last fiscal year, sales of Mitsubishi declined by 9% to 215 thousand cars in China – by 12% to 143 thousand, but because of the potentially high demand here for electric vehicles and plug-in hybrids, it is unlikely that “three diamonds” will go away completely.

Even in the key region АSEАN sale Mitsubishi at the end of the fiscal year decreased by 9% to 290 thousand in Australia and New Zealand by 14 per cent to 88 per thousand, but since the other members of the Alliance position here is even weaker, while Mitsubishi will invest major resources in the development of those regions, that is, will develop frame SUVs and pickups, and assorted minivans. Focus on the classic SUV will definitely please many fans of the Mitsubishi, only to rely on localization, and therefore attractive prices on these models is not necessary.

Learn more about models Mitsubishi Outlander 2020 in our market, you can rubric Chepachet:

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