Misubishi: new products must be hits to stay in the U.S.
#1
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Misubishi: new products must be hits to stay in the U.S.
Hoping for a Hit
New products need to be hits for Mitsubishi to stay in U.S. market
By KATHY JACKSON | AUTOMOTIVE NEWS
AutoWeek | Published 05/30/06, 12:58 pm et
http://www.autoweek.com/apps/pbcs.dl...1/TOC01ARCHIVE
New products need to be hits for Mitsubishi to stay in U.S. market
By KATHY JACKSON | AUTOMOTIVE NEWS
AutoWeek | Published 05/30/06, 12:58 pm et
NAGOYA, Japan -- Maybe it was a surprising bit of candor. Maybe it was an attempt to light a fire under the sales staff. But at face value, it was a stunning statement:
If a new crop of redesigned models doesn't sell, Mitsubishi may pull out of the United States.
At a press event here last week, the parent company's top product development executive said the stakes for the redesigned Outlander, Lancer and other vehicles are enormous. The vehicles have "to be successful for us to stay in business in the U.S.," said Shinichi Kurihara.
The first of the vehicles, the redesigned Outlander, goes on sale this fall. They will be built on the company's new C platform, the first developed by Mitsubishi since its 2004 breakup with DaimlerChrysler.
Kurihara's words underscore Mitsubishi's precarious position in the United States.
Last year sales plunged to 123,995 units, down from 345,111 in 2002. Mitsubishi Motors Corp. has posted huge losses in recent years, and it must make every product-development dollar count.
Mitsubishi's assembly plant in Normal, Ill., operates on only one shift. That's a recipe for losing money.
Knows the market
Kurihara, 56, knows the United States well. From 1984 to 1988 he worked at Mitsubishi's U.S. headquarters in Cypress, Calif., studying U.S. consumer habits.
From 1996 to 2001 he was senior vice president of product strategy in the United States and was planning chief for the redesigned 2007 Eclipse Spyder that went on sale this spring.
He was in charge of the global compact segment before being named to his current job on April 1. He is corporate general manager of the product strategy office.
Kurihara's role is to assist U.S. CEO Hiroshi Harunari in bringing the proper product to this country.
"The U.S. is so important," Kurihara says. "We need to support Harunari. We believe Outlander will help us establish our image. We hope Outlander will bring new customers to our dealerships."
Sales fall 16.5%
Kurihara admits Mitsubishi's U.S. lineup is performing poorly. Through four months this year, sales fell 16.5 percent to 36,536 units.
"When we decided on Endeavor and Galant, we thought Mitsubishi was more upscale," he says. "But now maybe that is not so important."
He dismisses the Raider pickup as a "bad decision." The Eclipse is performing well, outselling the Endeavor and Lancer.
Mitsubishi sold 2,626 Eclipses in April in the United States, compared with 988 in the same period a year earlier.
He says the C-platform vehicles will demand attention with sporty good looks and innovative equipment.
The Outlander crossover has seven seats and more engine power than the current five-seat Outlander. It is powered by a six-speed automatic transmission, Mitsubishi's first, and a new 3.0-liter V-6 making 220 hp. It replaces a 2.4-liter, 160-hp four-cylinder engine.
Both all-wheel-drive and front-wheel-drive powertrains are available. An aluminum roof panel helps lower the center of gravity.
It will be the first Mitsubishi sold in the United States with a touch-screen navigation system. Bluetooth wireless technology, paddle shifters and in-floor third-row stowable seats also are available.
"Globally, Mitsubishi has enjoyed a strong reputation as an SUV manufacturer," says Kurihara. "We hope to re-establish our SUV image in the U.S."
Mitsubishi wants to sell at least 4,000 Outlanders monthly in the United States. It sold 811 Outlanders in April.
Dealers want more ads
Mitsubishi in Japan says it plans to raise its U.S. incentive spending by 10 percent in the fiscal year that began April 1. The company will spend $3,000 per vehicle, up from $2,700 per vehicle in the fiscal year that ended March 31.
Miami dealer Bill Seidle says good product alone won't do it. He says Mitsubishi needs to open its purse and advertise.
"We have some of the finest automobiles in the U.S., such as the Eclipse and Eclipse Spyder, but nobody knows about them," Seidle says.
"I don't think they have enough funds to spend in the U.S. As a franchise, we're not moving and shaking."
If a new crop of redesigned models doesn't sell, Mitsubishi may pull out of the United States.
At a press event here last week, the parent company's top product development executive said the stakes for the redesigned Outlander, Lancer and other vehicles are enormous. The vehicles have "to be successful for us to stay in business in the U.S.," said Shinichi Kurihara.
The first of the vehicles, the redesigned Outlander, goes on sale this fall. They will be built on the company's new C platform, the first developed by Mitsubishi since its 2004 breakup with DaimlerChrysler.
Kurihara's words underscore Mitsubishi's precarious position in the United States.
Last year sales plunged to 123,995 units, down from 345,111 in 2002. Mitsubishi Motors Corp. has posted huge losses in recent years, and it must make every product-development dollar count.
Mitsubishi's assembly plant in Normal, Ill., operates on only one shift. That's a recipe for losing money.
Knows the market
Kurihara, 56, knows the United States well. From 1984 to 1988 he worked at Mitsubishi's U.S. headquarters in Cypress, Calif., studying U.S. consumer habits.
From 1996 to 2001 he was senior vice president of product strategy in the United States and was planning chief for the redesigned 2007 Eclipse Spyder that went on sale this spring.
He was in charge of the global compact segment before being named to his current job on April 1. He is corporate general manager of the product strategy office.
Kurihara's role is to assist U.S. CEO Hiroshi Harunari in bringing the proper product to this country.
"The U.S. is so important," Kurihara says. "We need to support Harunari. We believe Outlander will help us establish our image. We hope Outlander will bring new customers to our dealerships."
Sales fall 16.5%
Kurihara admits Mitsubishi's U.S. lineup is performing poorly. Through four months this year, sales fell 16.5 percent to 36,536 units.
"When we decided on Endeavor and Galant, we thought Mitsubishi was more upscale," he says. "But now maybe that is not so important."
He dismisses the Raider pickup as a "bad decision." The Eclipse is performing well, outselling the Endeavor and Lancer.
Mitsubishi sold 2,626 Eclipses in April in the United States, compared with 988 in the same period a year earlier.
He says the C-platform vehicles will demand attention with sporty good looks and innovative equipment.
The Outlander crossover has seven seats and more engine power than the current five-seat Outlander. It is powered by a six-speed automatic transmission, Mitsubishi's first, and a new 3.0-liter V-6 making 220 hp. It replaces a 2.4-liter, 160-hp four-cylinder engine.
Both all-wheel-drive and front-wheel-drive powertrains are available. An aluminum roof panel helps lower the center of gravity.
It will be the first Mitsubishi sold in the United States with a touch-screen navigation system. Bluetooth wireless technology, paddle shifters and in-floor third-row stowable seats also are available.
"Globally, Mitsubishi has enjoyed a strong reputation as an SUV manufacturer," says Kurihara. "We hope to re-establish our SUV image in the U.S."
Mitsubishi wants to sell at least 4,000 Outlanders monthly in the United States. It sold 811 Outlanders in April.
Dealers want more ads
Mitsubishi in Japan says it plans to raise its U.S. incentive spending by 10 percent in the fiscal year that began April 1. The company will spend $3,000 per vehicle, up from $2,700 per vehicle in the fiscal year that ended March 31.
Miami dealer Bill Seidle says good product alone won't do it. He says Mitsubishi needs to open its purse and advertise.
"We have some of the finest automobiles in the U.S., such as the Eclipse and Eclipse Spyder, but nobody knows about them," Seidle says.
"I don't think they have enough funds to spend in the U.S. As a franchise, we're not moving and shaking."
#2
Lexus Fanatic
Me and Mike (1SICKLEX ) have gone back and forth several times over who was going to be the next manufacturer selling here to pull out of the U.S. market.....Isuzu or Mitsubishi. It's still hard to say...although Mitsubishi obviously carries a far wider range of vehicles here than Isuzu does. Isuzu only sells two rebadged Chevy / GM vehicles here ( neither one of them an Isuzu design ) .....the Ascender SUV and the I280 / I350 pickup.
#3
Lexus Test Driver
Mitsubushi=FAILURE because they steal everyone's idea about 3 years too late. Can you say, "Highlander?" Bout time they drop out. Their SUV Montero Sport is a NIHS death trap.
CV
CV
#4
Super Moderator
It's rather sad to see that statement.
Mitsubishi just a few years ago opened its doors not only down here in Mexico, but also up in Canada. I see plenty of Outlanders on the street, but hardly any other vehicle. My track friends tell me the Eclipse is just way too underpowered (I agree having tested it), though beautiful. And friends who were going to get an EVO are looking elsewhere (they heard of clutch wear problems with that combo of AWD/Turbo).
Mitsubishi just a few years ago opened its doors not only down here in Mexico, but also up in Canada. I see plenty of Outlanders on the street, but hardly any other vehicle. My track friends tell me the Eclipse is just way too underpowered (I agree having tested it), though beautiful. And friends who were going to get an EVO are looking elsewhere (they heard of clutch wear problems with that combo of AWD/Turbo).
#5
Moderator
All I can say to Mitsubishi is good luck. Mitsubishi may have a wider model range than Isuzu which means they have a greater risk, they have more to lose than Isuzu. It appears that Mitsubushi will be the first to pull out of the U.S. if sales don't pick up for their new models. We are witnessing history in the making...
Last edited by Trexus; 06-01-06 at 10:39 AM.
#6
Moderator
iTrader: (8)
Originally Posted by CVsGX470
Mitsubushi=FAILURE because they steal everyone's idea about 3 years too late. Can you say, "Highlander?" Bout time they drop out. Their SUV Montero Sport is a NIHS death trap.
CV
CV
Is the eclipse the only car that's keeping mitusbishi alive?
Regarding Isuzu......there's more marketing for suzuki than isuzu
#7
Lexus Test Driver
iTrader: (1)
I hope that Mitsubishi survives as well. All their cars(other than the EVO) have been lacking since 1999. I liked all their cars back then, in fact I had a 199 Eclipse, as well as my rebodied 94 3000GT. The Diamante was a slick looking sedan, the galant wasnt bad.
Sadly, times have changed.....
The Galant looks horrific. Just trash it and start over. What a terrible looking vehicle. It definately needs a complete redesign. They should make aluminum Wheels standard on this car, and lower it all the way around. Its WAY too high, and the front is higher than the back, another no no. Hood and front look terrible.... just nothing about it looks good.
The Eclipse needs to go back to its roots. Its a bloated giant V6. Its over accentuated accets look gawdy, its just not an appealing vehicle. They should use the RX-8 and G35 as inspirations. Projector headlights are a must... and again the car is too lifted. It must lose girth and weight.
The Lancer needs some serious work. Mitsubishi should canabalize the EVO, and make the standard lancer look a lot more like the EVO. Sure it will hurt EVO sales, but it will help the Lancer... a lot. The car again, is way too lifted. Maybe they could have some special edition which looks a lot like the EVO. without the awesome motor and tranny.
I havent looked on the inside of any of these cars, but if the EVO VIII was any indication, all the mitsu's need some quality in the interior.
The new outlander isnt bad.
The New EVO is great
Sadly, times have changed.....
The Galant looks horrific. Just trash it and start over. What a terrible looking vehicle. It definately needs a complete redesign. They should make aluminum Wheels standard on this car, and lower it all the way around. Its WAY too high, and the front is higher than the back, another no no. Hood and front look terrible.... just nothing about it looks good.
The Eclipse needs to go back to its roots. Its a bloated giant V6. Its over accentuated accets look gawdy, its just not an appealing vehicle. They should use the RX-8 and G35 as inspirations. Projector headlights are a must... and again the car is too lifted. It must lose girth and weight.
The Lancer needs some serious work. Mitsubishi should canabalize the EVO, and make the standard lancer look a lot more like the EVO. Sure it will hurt EVO sales, but it will help the Lancer... a lot. The car again, is way too lifted. Maybe they could have some special edition which looks a lot like the EVO. without the awesome motor and tranny.
I havent looked on the inside of any of these cars, but if the EVO VIII was any indication, all the mitsu's need some quality in the interior.
The new outlander isnt bad.
The New EVO is great
Last edited by tqlla3k; 06-01-06 at 01:07 PM.
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#9
Guest
Posts: n/a
Originally Posted by mmarshall
Me and Mike (1SICKLEX ) have gone back and forth several times over who was going to be the next manufacturer selling here to pull out of the U.S. market.....Isuzu or Mitsubishi. It's still hard to say...although Mitsubishi obviously carries a far wider range of vehicles here than Isuzu does. Isuzu only sells two rebadged Chevy / GM vehicles here ( neither one of them an Isuzu design ) .....the Ascender SUV and the I280 / I350 pickup.
Yes we have sir. I say thery are gone. Isuzu has GM support and they love making dumb decisons. Mitsu will be gone
#10
Moderator
And don't forget Isuzu's latest model coming. This will save them...
https://www.clublexus.com/forums/sho...5&page=1&pp=15
https://www.clublexus.com/forums/sho...5&page=1&pp=15
#11
Lexus Fanatic
Originally Posted by tqlla3k
If Mitsu had something that looked like the RX-8 with the performance of the Evolution, that would be a HOT selling car.
In fact, one of my neighbors, I think, is getting ready to buy a new Eclipse. She has fallen in love with the car, even after asking me for help, and over my cautions that they have been unreliable.
Last edited by mmarshall; 06-01-06 at 01:35 PM.
#12
Speaks French in Russian
Thread Starter
Well they do have this....
and this coming.
I wouldn't count them out just yet. They do have some interesting products on the way. But if these two models for some reason fail, then peace out.
The current Mitsu line-up is still incredibly weak.
and this coming.
I wouldn't count them out just yet. They do have some interesting products on the way. But if these two models for some reason fail, then peace out.
The current Mitsu line-up is still incredibly weak.
#13
Lexus Test Driver
iTrader: (1)
Originally Posted by mmarshall
Well...the Eclipse V6 has 263 HP, not much less than the Evo itself...and that 263 HP is not burdened by the extra weight and drag of the Evo's AWD, though admittedly the Eclipse's FWD layout, unlike the Evo, is prone to some understeer. And the Eclipse's styling, except for the RX8's two mini-rear doors, is not all that different.
In fact, one of my neighbors, I think, is getting ready to buy a new Eclipse. She has fallen in love with the car, even after asking me for help, and over my cautions that they have been unreliable.
In fact, one of my neighbors, I think, is getting ready to buy a new Eclipse. She has fallen in love with the car, even after asking me for help, and over my cautions that they have been unreliable.
The new Eclipse doesnt look like the RX-8.
#14
Lexus Fanatic
Originally Posted by tqlla3k
The Eclipse is 3538lbs, the EVO is 3274lbs for the standard EVO. Pretty big difference. The EVO will beat my IS350 in almost any situation possible. The same cannot be said of the Eclipse.
The new Eclipse doesnt look like the RX-8.
The new Eclipse doesnt look like the RX-8.
I agree that the Eclipse falls short of the Evo's performance, but the difference is not all that great in a straight line....especially if the Eclipse has a manual transmission. The biggest difference will be in the Eclipse's understeer....the Evo, on a twisting road, will run circles around it.
Both cars, however, ( as with your IS350 as well ) have more than enough performance unless you want to drive like a madman.