Automotive News [sub] reports that Mitsubishi Motors North America has reached a deal with the workers of UAW Local 2488 to keep its assembly plant in Normal, Il open for the foreseeable future, building vehicles based on a new platform. Mitsubishi previously missed a deadline to assign new products to the Normal plant, forcing the firm to increase base wages there. With wages increasing and no new products in the offing, many have speculated that Mitsu would exit the US market, a move its CEO has strongly rejected. In fact, it now appears that Mitsubishi will cut back or abandon its European production rather than exit the US. But the new deal with its US labor force hasn’t shed any new light on how Mitsubishi will achieve its goal to quadruple sales… and until the firm announces new products for US production, this mystery will only deepen.
Though Mitsubishi hasn’t announced what new products will be assembled in Normal, the firm’s CEO does acknowledge that
from what we know at the moment, it is not possible to continue with the models that we have had
And he isn’t kidding. The Endeavor, Galant and Eclipse models that have been assembled in the US on Mitsu’s PS Platform (aka “Project America”) are dead in the water. The Normal plant could build some 240,000 units per year, but is set to produce only 27,000 units in 2010. Though Mitsubishi has tried to lower the Normal plant’s breakeven from 100k units to 70k units, low sales numbers of the aging PS-based products have put even that goal out of reach.
In fact, the products that Mitsubishi touts as the basis for a turnaround in the US are all built in Japan. The Outlander, its shortened sibling the Outlander Sport (known elsewhere as the ASX/RVR) and the MiEV are the only Mitsu products with any traction at all in the US. With the Yen hurting the value of Japanese exports, it is possible that Mitusbishi will elect to build the Outlander and Outlander Sport in Normal, possibly adding other GS-platform products such as the Lancer or even the Delica to the mix.
But is the platform that gave birth to the Chrysler Sebring going to cut it as the basis for a US-market turnaround? These products couldn’t do much worse than the larger PS-based Mitsubishi’s currently being built in Illinois, but as plans to quadruple sales go, this one seems to be lacking a certain something. If Mitsubishi is even remotely serious about the US market, it will probably have to roll out a new midsized platform to replace the moribund PS products. And if work on that new platform isn’t already well underway it will be too little too late. Because right now, Mitsubishi may have a US factory, but there’s still not even a hint of how it will actually be able to reverse its eight-year sales decline.
My reaction on reading this is that Mitsubishi’s most valuable asset is its dealer network, and the company is trying to hang on to this long enough to cut a deal with a foreign automaker wanting to enter the North American market.
Such an arrangement would have the added benefit of helping Mitsubishi to mitigate the costs of closing up shop.
They’ve been talking to somebody? Who needs production without owning the facilities? Chrysler? Suzuki? With the low dollar it certainly behooves off shore companies to have the production local to stay in the market.
I used to be friends with a guy from Normal. He was pretty strange.
They should bring back the Colt. A hearty, fun, little hatchback. Then add a high wagon version, like the Golf high top version. There is no reason they should be in the dumps if they would just look back and see what really works. Galant AIN’T it. Eclipse is an antique. They should get hooked up with a Chinese company or maybe Mahindra! A nice hatch with diesel power, a small cuv with diesel power! I think I just wet myself.
Amen. I’m still waiting for a Tiguan TDI. Not likely to happen though. If one of the many manufacturers would offer a diesel CUV, I think it would sell. Over 50% of all Golf wagons are TDI. People want vehicles with capacity and excellent fuel economy. Or at least I do. I want to replace my Jetta with either a wagon or smallish CUV. Unfortunately I can only get a diesel hatchback or wagon.
Remember when Mitsubishi was riding high and Subaru was struggling? Subaru rebounded by focusing on a relatively narrow range of niche vehicles. Mitsubishi, in contrast, tried to compete more directly with the big boys. Despite steadily declining sales they’ve never learned their lesson. Souped up Lancers do not a turnaround make.
They need to stake out a dramatically different path. Focus on one modular platform, make is as good as they can, and get creative in developing variants others haven’t come up with. For sentimental reasons more than anything I hope they keep the Eclipse around; it is the closest thing they have to a halo car a la Nissan’s Z.
First of all, it took me 10 web pages to find the Mitsubishi North America website. I wanted to see what they still sold, because I never cared enough to look.
I’m impressed that they can take a $15,000 Lancer, gussy it up, and sell it for $20k over base price. I’m pretty sure that’s where 90% of their US profits come from.
The Lancer Sportback is actually an interesting-looking car to a guy like me who likes 5 doors. Too bad it’s a Mitsubishi, and I’m still stinging from a 2.6 in a K-car I had 100 years ago.
The rest of the line is antique and/or boring.
I’m not sure why they’re in business here. They should go the way of Peugeot.
Mitsubishi is such a damaged brand here – outside of the cult following of the Evo and the older Eclipse / Stealth. After many years of selling 50% + of their entire fleet to rentals to claim sales growth and then selling cars to anyone with a pulse (losing millions on default payments). They take the Eclipse and add significant weight, make it only a FWD model and adding a huge heavy v6 for the GT version really killed its appeal to its main buyers. Plus add in their very shady the hidden customer complaints (withholding them from the gov’t in a special boxed file room only given access to a select few) in their Japan HQ, the criminal investigation and guilty verdicts of their higher ups from said practices (including law suits from deaths from wheels falling off their heavy trucks).
Maybe I have an expection, but my 2001 Mitsubishi Montero with 140,000 miles is trouble and rattle free, looks and drives like new. Continues to impress. Nothing has ever went wrong with it. Great off road. Just the wife and dogs, so third row is in storage. Love this vehicle.
Dealer gives great service.
They still sell a lot of cars in Japan. Nothing that would work in America though. It’s mostly cheap, small econoboxes. Imagine 5 versions of Toyota Yaris with FIAT 500 reliability.
They’ll be toast in 5 years. They’re slide is similar to Isuzu’s.
Maybe they’ll build the MiEV in the US?
https://www.thetruthaboutcars.com/2010/11/mitsubishi-i-miev-plus-sized-for-america/
They should withdraw and cosolidate production in Japan, seeing as their biggest markets are in Asia. The Eclipse should be killed off, it and the GTO(3000GT) were not suitable replacements for the Starion,which should make a return in Rear-Drive form. Btw, Mitsubishi actually outsells Subaru Globally, and their pretty reliable to boot. Lots of Lancers up here in Canada.
My condolences to eggsalad. Those Astron engines with the Hitachi Carb and Jet Valves were absolute garbage, I feel bad for anyone who owned one of those.
I had some hope that the Outlander Sport would be more than what it turned out to be; an underpowered, sloppy handling SUV – looks nice, but a half-assed effort. Mitsu is toast here.
Thanks for the headsup that the UAW pollutes Mitsubushi. I have not considered a Mitsu in the past, but now I know I will probably avoid any Mitsu knowing the UAW has them by the nuts.
Think: China. John
I worked with Mitsubishi Motor Sales of America communications for 2 years. I think tparkit has it right. They’re holding on to Normal for the production facility until the cavalry comes in.
Who would that be? My guesses would be Mahindra or another Indian co., one of the Chinese, or Peugeot, in that order. No one else needs the capacity.
The U.S. dealer network is their best asset — very good, loyal and long-suffering despite all the ways that MMSA has stuck it to them over the years. I would think Subaru, VW or anyone else on an expansion quick should be talking to them.
That’s quite unfortunate about the UAW situatio. I didn’t follow the brand closely but I never understood why they did so poorly here.
My family has had good experiences with (3 older) Mitsus. We still have a 2004 Montero Sport AWD with 90,000 on it that has been a terrific, reliable vehicle and still looks great. You still see a LOT of these trucks on the road which I’ve found to almost always be a good sign regarding longevity.
None of their current stuff really stands out to me but the same could be said for a lot of brands.