Following the announcement that Suzuki would cease selling cars in the United States market, all eyes turned to Mitsubishi, the Japanese automaker which will now occupy the last-place position on the monthly sales charts. With a stale product line, a shrinking dealer network, no perceptible marketing and plummeting U.S. sales (down 29-percent through October), it’s a safe bet that Mitsubishi will soon follow Suzuki to the exit door.
Not so, says Automotive News (via Left Lane News), which quotes Mitsubishi president Osamu Masuko as saying, “We have no intention whatsoever of withdrawing from the U.S. market. The U.S. market is a very important market.”
Color us skeptical, but actions speak louder than words. In the early 1990s, Mitsubishi was a full-line automaker, supplying everything from compact pickups through luxury sedans and grand-touring coupes. Today, its best known for the Outlander and Outlander Sport crossovers, as well as the aging Lancer and Lancer Evolution. If exciting new products are in the works, Mitsubishi isn’t telling anyone about them.
Masuko remains upbeat on U.S. sales, blaming this year’s decline on the death of the Eclipse, Eclipse Spyder, Galant and Endeavor SUV. He expects sales to grow next year with the launch of refreshed models, such as a new Outlander crossover.
Mitsubishi also builds vehicles for export in the United States, which is far more profitable than building them in Japan, given the strong yen and the weak dollar. A likely scenario would be for the automaker to continue production for export here, yet cancel U.S. sales. As for the when, the tipping point is when the expense of sales operations outweighs profits.
Unless something radical happens in the near future, we say it’s a matter of when, not if, this occurs.
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
