Mitsubishi Discontinues Pajero SUV Globally, Restructuring Continues
Strapped for cash, Mitsubishi has placed another legend on the chopping block. While the Pajero is famous globally for its stellar performance at the Dakar Rally, giving Mitsubishi more wins at the event than any other brand in history, you probably knew it as the Montero (or Dodge Raider if you’re old enough).
Sadly, you won’t be knowing it as anything but a memory soon — even if you live somewhere with a source of fresh examples. Having forecast another year of losses, Mitsubishi decided it need to continue tightening its belt. The Pajero will be taken out of production while the brand focuses on business in Asia.
Even die-hard Mitsubishi fans waiting for a return to form have largely given up at this point.
The days of the brand offering purposeful machines that could compete with fancier rivals at a substantially lower price are gone and the company seems to have no interest in reviving anything with VR-4 at the end if its name — be it the once-common Galant or more-ludicrous 3000GT. We’d ask what happened to the formerly mighty brand, but it’s not like there is some big secret. We have watched the saga unfold for decades, with 2020 being the latest chapter in this tragic tale.
Following some already tough times, Mitsubishi Motors posted a loss of about 176 billion yen ($1.7 billion USD) in the April-June quarter and predicted more trouble on the way. According to Reuters, the brand recently said it anticipates an operating loss of 140 billion yen ($1.33 billion) for the year ending March 2021 — citing cooling regional markets and the pandemic as major contributors. Meanwhile, 2020’s year-end losses could be as high as 220 billion yen ($2.1 billion).
From Reuters:
The coronavirus crisis has exacerbated struggles at the company that had already been battling falling sales in China and southeast Asia, its largest market which accounts for a quarter of its sales.
As part of its restructuring plan, Mitsubishi, a junior member of the Nissan-Renault automaking group, said it would stop making the Pajero SUV crossover model next year, and close the plant in Japan which makes the vehicle.
The maker of the Outlander SUV said it would reduce its presence in Europe and North America and focus on growing in Asia.
Restructuring efforts will progress with the brand downsizing wherever possible and sharing responsibilities with Nissan/Renault. Mitsubishi hopes to reduced fixed costs by 20 percent over the next few years and pull out of any region where business is failing. That said, the planned cost-cutting strategy won’t be sufficient to offset existing losses.
Mitsubishi’s chief executive told reporters that the severity of the matter should not be downplayed and to expect additional measures. “To pave the way to recovery, the top priority of all executives is to share a sense of crisis with employees to execute cost reductions,” CEO Takeo Kato said.
[Image: Rodrigo Garrido/Shutterstock]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
More by Matt Posky
Comments
Join the conversation
Seems they tried to make the Acadia a more direct competitor for the Grand Cherokee, but with three rows of seats (albeit a really small 3rd). Interesting that they would abandon the space given that the next Grand Cherokee will debut three rows of seats in that vehicle too.
For the USA, Mitsu only has one compact and two SUVs. Mazda isn't too far behind with two sedans, two SUVs and one sports car. Time to hang it up like Suzuki or Daihatsu did for North America and focus on Asia. Both have been squeezed out by the Koreans.