Mitsubishi Motors Is Gearing Up to Finally Get Its Act Together

by Matt Posky

March 1st, 2018 1:55 PM

mitsubishi motors is gearing up to finally get its act together

Poor Mitsubishi. Its strange history has ushered in memorable models, an important alliance with Chrysler, success on the World Rally stage, a partnership with Jackie Chan, an epic fuel economy scandal, and building debt that eventually turned it into the sad creature we know today. But there is nothing to say it has to stay mired in that ugly situation. It’s getting ready to crawl out of the dumpster and will be getting plenty of help along the way.

The Renault-Nissan Alliance, which now includes Mitsubishi Motors, announced a reformatting of its executive lineup on Thursday — adding new areas, such as quality and car servicing, where all three companies will work in tandem. Bent on efficiency savings, the Alliance said it will seek to extend its convergence in the areas of purchasing, engineering, manufacturing and supply chains next month (when Mitsubishi also gets its new CEO for North America). The ultimate goal here is to maximize profits that can then used for advanced research and development.

Where does this leave Mitsubishi? In a much better position than it once was. Despite initial concerns that Renault and Nissan would attempt to relegate the brand to Asia, where it’s strongest, the Alliance opted to improve the company’s U.S. dealership network and grow sales by 30 percent to 130,000 units per year.

That apparently does not mean stripping any of the brands of their identity, either. According to Reuters, Alliance chairman Carlos Ghosn said the key is to “turbo-charge the performance and growth of its member companies, while preserving the autonomy and distinct strategies of Renault, Nissan and Mitsubishi Motors.”

“The CEO of each company is in charge of its own business, that is the bottom line. This is not about change of responsibility, it’s about acceleration of the synergies that are not possible without working together,” Ghosn added. “Everything we are doing here is about efficiency.”

Mitsubishi may already be on the road to recovery. It has seen gradually improving sales in North America for the last five years. The brand’s stock valuation has also recovered since collapsing in April of 2016, after news of its 25-year-long fuel economy scandal broke. Mitsubishi Motors may still be a shadow of its former self, but something is starting to materialize as things improve. That doesn’t mean the Lancer Evolution is poised for a return next year, nor does it suggest its a big change in its lackluster North American lineup is right around the corner.

However, more money will eventually make those items a possibility. The Alliance has already unveiled a 2022 mid-term strategy targeting increasing annual “synergies” of more than 10 billion euros ($12.2 billion). That’s up from 5 billion ($6.1 billion) in 2016, when Nissan initially acquired a controlling interest Mitsubishi.

[Image: Mitsubishi Motors]

#AutomotiveIndustry #CarlosGhosn #CorporateStrategy #HiringsAndFirings #Management #Mitsubishi #MitsubishiMotors #Nissan #Renault-Nissan-MitsubishiAlliance

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6 of 23 comments

Inside Looking Out on Mar 01, 2018

Japanese companies die hard. They will help each other to survive.

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- Highdesertcat on Mar 01, 2018
  
  The governments of Japan, South Korea and Germany are very heavily vested in their national companies. They own the majority of shares. Such companies rarely die. They've got their national governments backing them. They can't fail. Closest thing we've seen to that in the US was the nationalization of GM in 2009 and the billions upon billions of dollars of wasted taxpayer money that was poured into GM to keep it on life-support. When the US gov't seized Chrysler at the same time as it seized GM, at least the US gov't had enough sense to liquidate Chrysler's carcass to Fiat, along with a $1.3Billion bribe. But not so GM. For political reasons the US gov't chose to put the full faith and credit of the US behind GM's carcass to keep GM operating due to extreme political pressure exercised by the UAW who had put "their guy" in the White House. UAW pensions guaranteed! Is it any wonder that so many American taxpayers have turned their backs on GM? Hey, if you simply HAVE to Buy American, there is only one left: FORD.
  
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- Sub-600 on Mar 02, 2018
  
  @highdesertcat The UAW pension fund was too big to fail according to GM Chairman Barack Obama. Was Solyndra a union shop?
  
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- Big Al from Oz on Mar 02, 2018
  
  highdesertcat, And the US government didn't heavily invest in the Big Three during the GFC? Come on man, again look at this objectively.
  
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- Threeer on Mar 02, 2018
  
  @highdesertcat As long as you don't buy a next-gen Focus...or Fusion...or Fiesta...or Ecosport... As for Mitsu, I want them to succeed. Really. My first car was a transplant (1978 Plymouth Arrow) that I still remember with great fondness. My parents owned (for a time) a Mitsu Lancer in Germany in the early 90s. And up until last year, I had a 2004 Lancer Sportback Ralliart that was one of the best cars I'd owned (just wish it had been offered in a manual trans). Here's hoping they pull it together, though the words "Renault" and "Alliance" in the same sentence do not bring back great memories!
  
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Tankinbeans on Mar 03, 2018

I was honestly surprised Mitsubishi still existed. There is only 1 dealer that I know of in the Twin Cities (Minneapolis/St. Paul metroplex). I'd assumed we'd be getting some French captive imports with the Renault connection, but I guess we'll find out. I'm honestly ambivalent about them since I've never owned one. I drove a diamond-star Eclipse one night because the owner got himself drunk and I wasn't about to ride home with him, and it didn't really leave much of an impression on me.

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