No More New Mitsubishis In Europe, Sales To Wind Down
Mitsubishi will stop introducing new products to the European market as part of a business plan that will focus the brand’s predominant future investments in Southeast Asia. Over the next three years, the automaker will aim to cut costs and build towards sustainable growth as part of this reorganization.
The decision will include not to introduce the next-generation Outlander in Europe, according to Automotive news Europe. The crossover was supposed to get there in the second half of 2020, so the cancellation came almost at the last minute.
Mitsubishi already has a strong presence in Southeast Asia, and the company believes this is where it can compete best in the future. Future models in this region would focus on off-road oriented products. Vehicles on the way include a new Triton pickup, Xpander MPV, Pajero Sport and two unnamed vehicles.
One off-roader that doesn’t stick around is the Pajero (gallery above). As part of the cost reductions of the new business plan, the company intends to stop manufacturing the SUV. The plant would shut down in 2021. The current version of the Pajero dates back to its debut in 2006.
To save money, Mitsubishi also wants to cooperate more with its partners Nissan and Renault. This includes the use of their technology as for assisted driving and electric vehicle systems for future Mitsubishi vehicles.
While not a mainstay of Mitsubishi’s new business plan, the company has also updated vehicles in the United States. The Mirage, Mirage G4 sedan, Outlander PHEV, and Eclipse Cross will have refreshments in the coming months. The next-gen Outlander debuts for America in the second quarter of 2021.
MITSUBISHI MOTORS Announces Small But Beautiful Medium Term Business Plan to Achieve Cost Rationalization and Profitability Improvement for Sustainable Growth
Tokyo, July 27, 2020 – MITSUBISHI MOTORS CORPORATION (MMC) today announced its three-year medium-term business plan (fiscal 2020 to 2022), Small but Beautiful, to focus its management resources on its key regions and technologies. This plan focuses on streamlining costs and improving profitability to achieve a solid management base aimed at sustainable growth after the three-year period of the plan.
The Small but Beautiful plan is based on structural reforms aimed at significantly reducing fixed costs by optimizing production capacities, regional strategy as well as product / technology strategies. As part of this initiative, MMC will focus its management resources on the ASEAN region, where it is competitive. In addition, MMC will increase profitability by further improving its unique and advanced technologies such as PHEV, HEV and 4WD, also by introducing advanced models leveraging technologies of Alliance partners. By integrating these technologies, MMC will launch environmentally friendly models that contribute to the development of a society where people, cars and nature can coexist in harmony.
“We will shift our strategy from global expansion to selection and concentration,” said Takao Kato, representative general manager and general manager of MMC. “First of all, we will complete our structural reforms and further strengthen our competitive areas – ultimately to build a corporate structure that can surely generate profits during this period in the medium term.
The main actions of this plan are as follows:
Reduce fixed costs by 20% or more compared to fiscal 2019 and focus investments on key regions and technologies to improve profitability
Concentration of management resources on ASEAN and increase in market share to over 11%
Developing businesses in Africa, Oceania and South America as the second pillar after ASEAN
Strengthen the range of green models such as PHEVs and electric vehicles by launching new models by FY2022 and introducing new models including SUVs, vans and minivans in ASEAN from FY2022
For more information on the Small but Beautiful medium-term plan, please access: