By on July 28, 2020

Living in Europe and eager for the next generation of Mitsubishi products? You might end up waiting forever.

As part of a crash cost-cutting exercise designed to stabilize the storm-rocked company, the Japanese automaker has decided to reduce investment in under-performing markets while chopping fixed costs by one-fifth over the next two years.

In Europe, the brand could soon become a ghost. Mitsubishi has hit the stop button on any new product headed in that direction. (Read More…)

By on July 27, 2020

Image: Daimler AG

There’s a plan afoot to more carefully align Mercedes-Benz’s U.S. product offerings with consumer demand, all the while saving the automaker money. The result, Automotive News reports, will be a lineup lacking the flair and whimsy the brand once enjoyed.

Fans of two-door variants, especially, stand to lose out under this new strategy. (Read More…)

By on June 22, 2020

Bavaria-based BMW says it aims to cut roughly 6,000 positions from its lineup on account of coronavirus complications. Times are tough and the manufacturer needs to tighten its belt, just like many of its peers.

The alley-oop that precedes the slam dunking of these jobs into the wastebasket will be tempting retirement packages for those of a certain age. But BMW also said it is interested in offering younger people financial assistance for full-time higher education with a guarantee of a job when they’re done — offering some amount of hope.  (Read More…)

By on June 22, 2020

Mitsubishi watched as its U.S. and Canadian volumes rose steadily over the past several years — growth hampered by a limited product lineup and so-so vehicle quality. Still, it was growth, and Mitsu made sure to celebrate each year-over-year sales increase.

Well, that was then, and this is now. As a member of an alliance dominated by Renault and Nissan and hit hard, like many others, by the coronavirus pandemic, the future holds a different strategy for the Japanese automaker. For the U.S., it also seems to hold fewer Mitsubishis. (Read More…)

By on June 8, 2020

Herbert Diess Jetta 2017

A report last week in a German publication stated that Volkswagen Group was looking for someone new to take charge of its namesake brand. The new blood would come in the form of Porsche CEO Oliver Blume, sources said.

We’re now hearing there’s an “extraordinary” supervisory board meeting being held at VW today, and that the result could be current brand chief Herbert Diess being bounced from his role. (Read More…)

By on June 3, 2020

Ren Cen. GM

 

On Tuesday, General Motors CEO Mary Barra suggested her company would exit the other side of the coronavirus pandemic running much leaner than when it went in. While this will probably be the case for other automakers, as many (including General Motors) went into 2020 with restructuring efforts planned or already underway, GM is letting everyone know it’s doing cuts extra right.

This likely has to do with the automaker not wanting to look as though it’s in for a repeat of 2008, now that the global economy’s once again careening toward troubled times — but we’re just guessing. It also seems as though the extreme lack of industrial progress created by months of factory shutdowns has forced executives to fill the void with a lot of hot air. Fortunately, Barra’s message wasn’t totally devoid of useful information.  (Read More…)

By on June 3, 2020

Renault — struggling, like all other automakers, from the body blow called COVID-19 — has secured a financial lifeline from an unsurprising source: the French government.

France, which holds a 15 percent stake in the automaker, signed off on a $5.6 billion rainy day fund for the company, guaranteeing 90 percent of the borrowed sum. That takes a fair bit off the heat off. (Read More…)

By on May 29, 2020

The same week that Nissan outlined a supposedly sustainable path forward, alliance partner Renault did the same thing, revealing a blueprint for a streamlined business and pared-down workforce in the years ahead.

Annual production will be cut, plants will be shuttered, and about 15,000 employees will be let go, the automaker said. The company’s problem was thinking too big, its interim CEO remarked — something Renault’s former boss might disagree with. (Read More…)

By on May 27, 2020

Nissan and Renault opted against a full merger on Wednesday, but neither side seemed to feel now was the time to disband the alliance and see how they might fare as a solo act. Every member of the Renault–Nissan–Mitsubishi Alliance took time to address financial concerns last year, encouraging further product integration as a cost-mitigation strategy. Despite Nissan shareholders and staff clearly losing interest in the French-led confederation, the brand seems to understand that leaning upon its allies might be the only way to get through a period of increasing economic uncertainty.

Mitsubishi slashed its 2020 financial forecasts ahead of the coronavirus pandemic by over $500 million while the other two issued numerous profit warnings in the latter half of 2019. Now the world is exiting lockdowns and assessing the economic damage they caused. Obviously, this is not the time to be burning bridges, even if some alliance partners aren’t enthralled with what’s probably waiting on the other side(Read More…)

By on May 19, 2020

mitsubishi

Mitsubishi Motors’ membership in the great Renault-Nissan alliance won’t protect it from economic realities arising from the coronavirus pandemic. On Tuesday, the automaker announced an 89-percent drop in operating profit for the year ended March, with black ink totaling just $119 million.

Rocked by the virus that’s thrown every automaker’s balance sheet into disarray, Mitsubishi scrapped its planned dividend and held back from issuing a projection for the current year. It’s also thinking small. The virus has changed the global landscape, and Mitsubishi says it will have to change to meet the challenge. (Read More…)

By on February 18, 2020

2019 Nissan Kicks badge

Dismally poor performance in a key market has left Nissan’s freshly minted CEO, Makoto Uchida, with no other option than to cut deeper.

Already, the struggling automaker’s North American arm has faced a workforce furlough, severe restrictions on travel, pared-down build configurations on new models, and a host of other cost-cutting efforts, but the present situation calls for more.

Replying to angry shareholders in Japan, Uchida promised to be merciless. (Read More…)

By on February 11, 2020

Mercedes-Benz sold a record 2,385,400 passenger vehicles around the globe in 2019, topping the previous year’s tally by some 3,400 units, and subsequently brought in more money while doing it. Revenue rose 3 percent, the automaker said in its end-of-year earnings report, but that intake didn’t translate into more profit.

Far from it.

As the automaker embarks on a cost-cutting campaign aimed at freeing up cash for electric vehicle development, among other things, the German manufacturer announced its net profit dropped to $2.95 billion from $8.29 billion in 2018. As a result, shareholders can expect a paltry dividend payout. (Read More…)

By on February 3, 2020

Nissan’s attempt to slash costs amid a protracted sales and profit slump will mean the end of two regional offices in the United States.

The news comes after a slew of measures aimed at reining in spending, the most recent of which was a buyout package offered to U.S. employees over the age of 52. With two years of declining sales on its ledger, the automaker figures fewer vehicles sold should result in fewer offices. (Read More…)

By on January 29, 2020

In an effort to reduce expenses and lower its headcount, an embattled Nissan is offering buyouts to its U.S. employees.

It’s rumored that Nissan plans to eliminate thousands of white-collar jobs and shutter several global factories as part of its effort to improve the company balance sheet. Going into 2020 weak and not expecting to make any money, the automaker is turning its focus to restructuring for at least the next 24 months.

“To adapt to current business needs and improve efficiencies, Nissan will offer voluntary separation packages to eligible U.S.-based employees,” the company said in a statement.  (Read More…)

By on January 17, 2020

Herbert Diess Jetta 2017

Nokia isn’t having a good day, what with Volkswagen CEO Herbert Diess likening it to an Edsel or Tucker. The VW chief contrasted the phone maker with sales leader Apple when discussing his company’s future, claiming VW will need to move much faster if it’s to stay at the front of the pack.

To further this goal, some things will need to move to the back burner. (Read More…)

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