William Maley

Mitsubishi News: Mitsubishi Plays On Its Strength In Crossovers and Electrics To Rise Back Up In U.S.

6 posts in this topic

Mitsubishi is playing to its strengths to help it rebound in the U.S. That includes the introduction of three crossovers with electric powertrains.

 

Mitsubishi CEO Osamu Masuko tells Automotive News the company will channel their limited resources into creating a more compact lineup mostly made up of crossovers and SUVs.

 

"We are strong in SUVs and four-wheel drives. And that is what we would like to focus on as core models in the U.S. market. We have changed direction. We are going to allocate more resources to the areas where we are strong in the U.S," said Masuko.

 

This move means we will likely not see a replacement for aging Lancer compact and i-MiEV. Instead, Mitsubishi will introduce a new coupe-styled crossover that will slot in between the Outlander Sport and Outlander in 2017. A redesigned Outlander will arrive in 2018 and a new Outlander Sport will come a year after. Each crossover will come with a gas powertrain and some sort of electrification, whether that be through a plug-in hybrid system or an electric powertrain.

 

In the meantime, Mitsubishi will introduce "big minor changes" to keep their nameplates fresh. This was first shown at the LA Auto Show with the introduction of the 2016 Outlander Sport and 2017 Mirage.
Source: Automotive News (Subscription Required)



Click here to view the article

Share this post


Link to post
Share on other sites

Very interesting, if they go pure Hybrid on their auto lineup, they could nail the MPG thing and really attract sales.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now




  • Similar Content

    • By William Maley
      Mitsubishi has unveiled a new three-year strategic plan called 'Drive for Growth'. The Japanese automaker wants to increase unit sales and revenue by 30 percent - about 1.3 million vehicles sold in the case of the former. It also plans on improving profit margins from 0.3 to 6 percent. To pull this off, Mitsubishi will be working on reducing costs in development and manufacturing, along with investing $5.3 billion for new products and revamping key markets.
      In terms of products, Mitsubishi is planning on launching 11 new and redesigned models over next three years. For the U.S., this means the Outlander PHEV and upcoming Eclipse Cross. The U.S. will also see Mitsubishi work on improving their dealer network.
      "We will re-energize our dealership network. We are reviewing our incentive plans, both to attract new dealers and to encourage existing ones to achieve better sales," said Trevor Mann, COO of Mitsubishi Motors.
      The goal is to see a 30 percent increase in sales to 130,000 vehicles by the 2019 fiscal year.
      For other markets, this is what Mitsubishi is planning,
      For Southeast Asia (Mitsubishi's largest and most profitable marketplace), a new assembly plant in Indonesia and the launch of Xpander multi-purpose vehicle The focus in Japan is revitalizing their mini-car business after the fuel economy manipulation scandal China will see an expansion in dealers with the goal to sell 220,000 vehicles by 2019 There will be one thing the U.S. will be missing out from Mitsubishi. It was expected that the tie-up with Nissan that begun last year would provide some help for the U.S. But according to Automotive News, Mitsubishi will be going on its own for this region. There are three reasons for this; antitrust concerns between the two companies, vehicles using common engines and platforms not being ready, and Mitsubishi wanting to build the brand back up on their own strengths.
      Source: Mitsubishi Motors, Automotive News (Subscription Required)
      Press Release is on Page 2


      MITSUBISHI MOTORS LAUNCHES ‘DRIVE FOR GROWTH’ PLAN TO INCREASE VOLUMES, REVENUES AND PROFITABILITY
      Three-year plan targets more than 30 percent increase in unit sales and revenues Operating profit margin to reach 6 percent or more Capital expenditure and R&D investment to increase to more than 600 billion yen over the three-year period Product renewal to accelerate with launch of six new models including Eclipse Cross SUV Market expansion planned in ASEAN, US and China TOKYO, Japan – Mitsubishi Motors today launched "Drive for Growth," a three-year strategic plan to deliver sustained and profitable growth, targeting an increase of more than 30% in both annual unit sales to 1.3 million vehicles and in revenues to 2.5 trillion yen.
      Under the plan, Mitsubishi Motors aims to achieve an operating profit margin of 6% or more by the end of fiscal 2019, up from 0.3% in fiscal 2016. The plan combines a product renewal program with targeted market expansion and operating efficiency improvements.
      Osamu Masuko, Mitsubishi Motors chief executive, said: "Drive for Growth is a new roadmap for Mitsubishi Motors. We will rebuild trust in our company as our highest priority, successfully launch new vehicles, and achieve a V-shaped financial recovery. These will be the foundations for our future sustainable growth, which will involve increased capital expenditure and product development spending."
      The Drive for Growth plan involves a 60% increase in annual capital expenditure to 137 billion yen in fiscal 2019 – lifting spending as a proportion of sales to 5.5% a year. R&D expenses will rise by 50% to 133 billion yen over the same period. In total, this will amount to more than 600 billion yen in investments. Even with these increases, Mitsubishi Motors will maintain financial discipline and generate positive free cash flow during the period. The company intends to establish a competitive dividend policy comparable to those of other Japanese automotive manufacturers. 
      As part of its investment drive, Mitsubishi Motors plans to strengthen its four-wheel drive SUVs and pick-ups, and to launch 11 models including the XPANDER and Eclipse Cross. The product renewal program will coincide with a market expansion drive in the ASEAN region, Oceania, United States, China and Japan.
      Mr. Masuko said: "This is an ambitious program to maximize our strengths in growing product segments, especially four-wheel drive, and to pursue growth in markets where our brand has strong potential, particularly the ASEAN region. This growth program will also involve an efficient and disciplined operating structure as we continue to manage costs."
      Under Drive for Growth, Mitsubishi Motors is targeting a market share of 10% in ASEAN. Sales activities will be reinforced in the US. The company's presence in China will be strengthened with the introduction of models such as the Outlander and Eclipse Cross. And the company will invest in its sales network and product portfolio to return to profitability in Japan by the end of the plan.
      The strategic plan is based on three strategic initiatives:
      Product renewal: During the period of the plan, Mitsubishi Motors will launch 11 new models, of which six will be entirely new model changes – averaging two each year – while the remainder will be important updates of existing vehicles. By the end of the plan, the company expects its five best-selling global models consisting of SUV, 4WD, and plug-in hybrid electric vehicles (PHEV) to account for 70% of total sales volume. Reflecting the shift to lower emission models, the company also announced that it plans to provide electrified solutions across its core model range including an EV kei car from 2020. Focus on core markets to drive revenue growth: This year's opening of a new assembly plant in Indonesia, and the recent launch of the XPANDER multi-purpose vehicle, will drive the growth of the ASEAN business, the group's largest and most profitable operation. ASEAN volumes are expected to rise from 206,000 units a year to 310,000 units a year in 2019. Mitsubishi Motors will also launch new models to assist the turnaround of its important mini-car business in Japan. In the US, the company will improve its dealership networks, targeting a 30% increase in unit sales to 130,000 units in fiscal 2019. In China, Mitsubishi Motors will double the number of dealerships and more than double sales to 220,000 units in fiscal 2019.  Cost Optimization: Mitsubishi Motors will tightly manage production costs, with a target to reduce monozukuri costs by 1.3% per year, in spite of large investments in R&D. Alongside cost management, the company will benefit from growing synergies from its membership of the Renault-Nissan-Mitsubishi alliance. Mitsubishi Motors is seeking synergies totaling more than 100 billion yen over the course of the plan, with the bulk of these to come from efficiencies in procurement and costs avoided in R&D.  Mitsubishi Motors will contribute its expertise in PHEV technology, its capabilities in SUVs and pick-ups, and market strengths in the ASEAN region to the wider synergy program of the Alliance, which aims to double annualized synergies to more than 10 billion euros by the end of 2022.
      "We are refreshing our product line-up, investing in R&D and targeting core market growth," added Mr. Masuko. "Drive for Growth will enable us to continue the transformation of the company over the next three years."

      View full article
    • By William Maley
      Mitsubishi has unveiled a new three-year strategic plan called 'Drive for Growth'. The Japanese automaker wants to increase unit sales and revenue by 30 percent - about 1.3 million vehicles sold in the case of the former. It also plans on improving profit margins from 0.3 to 6 percent. To pull this off, Mitsubishi will be working on reducing costs in development and manufacturing, along with investing $5.3 billion for new products and revamping key markets.
      In terms of products, Mitsubishi is planning on launching 11 new and redesigned models over next three years. For the U.S., this means the Outlander PHEV and upcoming Eclipse Cross. The U.S. will also see Mitsubishi work on improving their dealer network.
      "We will re-energize our dealership network. We are reviewing our incentive plans, both to attract new dealers and to encourage existing ones to achieve better sales," said Trevor Mann, COO of Mitsubishi Motors.
      The goal is to see a 30 percent increase in sales to 130,000 vehicles by the 2019 fiscal year.
      For other markets, this is what Mitsubishi is planning,
      For Southeast Asia (Mitsubishi's largest and most profitable marketplace), a new assembly plant in Indonesia and the launch of Xpander multi-purpose vehicle The focus in Japan is revitalizing their mini-car business after the fuel economy manipulation scandal China will see an expansion in dealers with the goal to sell 220,000 vehicles by 2019 There will be one thing the U.S. will be missing out from Mitsubishi. It was expected that the tie-up with Nissan that begun last year would provide some help for the U.S. But according to Automotive News, Mitsubishi will be going on its own for this region. There are three reasons for this; antitrust concerns between the two companies, vehicles using common engines and platforms not being ready, and Mitsubishi wanting to build the brand back up on their own strengths.
      Source: Mitsubishi Motors, Automotive News (Subscription Required)
      Press Release is on Page 2


      MITSUBISHI MOTORS LAUNCHES ‘DRIVE FOR GROWTH’ PLAN TO INCREASE VOLUMES, REVENUES AND PROFITABILITY
      Three-year plan targets more than 30 percent increase in unit sales and revenues Operating profit margin to reach 6 percent or more Capital expenditure and R&D investment to increase to more than 600 billion yen over the three-year period Product renewal to accelerate with launch of six new models including Eclipse Cross SUV Market expansion planned in ASEAN, US and China TOKYO, Japan – Mitsubishi Motors today launched "Drive for Growth," a three-year strategic plan to deliver sustained and profitable growth, targeting an increase of more than 30% in both annual unit sales to 1.3 million vehicles and in revenues to 2.5 trillion yen.
      Under the plan, Mitsubishi Motors aims to achieve an operating profit margin of 6% or more by the end of fiscal 2019, up from 0.3% in fiscal 2016. The plan combines a product renewal program with targeted market expansion and operating efficiency improvements.
      Osamu Masuko, Mitsubishi Motors chief executive, said: "Drive for Growth is a new roadmap for Mitsubishi Motors. We will rebuild trust in our company as our highest priority, successfully launch new vehicles, and achieve a V-shaped financial recovery. These will be the foundations for our future sustainable growth, which will involve increased capital expenditure and product development spending."
      The Drive for Growth plan involves a 60% increase in annual capital expenditure to 137 billion yen in fiscal 2019 – lifting spending as a proportion of sales to 5.5% a year. R&D expenses will rise by 50% to 133 billion yen over the same period. In total, this will amount to more than 600 billion yen in investments. Even with these increases, Mitsubishi Motors will maintain financial discipline and generate positive free cash flow during the period. The company intends to establish a competitive dividend policy comparable to those of other Japanese automotive manufacturers. 
      As part of its investment drive, Mitsubishi Motors plans to strengthen its four-wheel drive SUVs and pick-ups, and to launch 11 models including the XPANDER and Eclipse Cross. The product renewal program will coincide with a market expansion drive in the ASEAN region, Oceania, United States, China and Japan.
      Mr. Masuko said: "This is an ambitious program to maximize our strengths in growing product segments, especially four-wheel drive, and to pursue growth in markets where our brand has strong potential, particularly the ASEAN region. This growth program will also involve an efficient and disciplined operating structure as we continue to manage costs."
      Under Drive for Growth, Mitsubishi Motors is targeting a market share of 10% in ASEAN. Sales activities will be reinforced in the US. The company's presence in China will be strengthened with the introduction of models such as the Outlander and Eclipse Cross. And the company will invest in its sales network and product portfolio to return to profitability in Japan by the end of the plan.
      The strategic plan is based on three strategic initiatives:
      Product renewal: During the period of the plan, Mitsubishi Motors will launch 11 new models, of which six will be entirely new model changes – averaging two each year – while the remainder will be important updates of existing vehicles. By the end of the plan, the company expects its five best-selling global models consisting of SUV, 4WD, and plug-in hybrid electric vehicles (PHEV) to account for 70% of total sales volume. Reflecting the shift to lower emission models, the company also announced that it plans to provide electrified solutions across its core model range including an EV kei car from 2020. Focus on core markets to drive revenue growth: This year's opening of a new assembly plant in Indonesia, and the recent launch of the XPANDER multi-purpose vehicle, will drive the growth of the ASEAN business, the group's largest and most profitable operation. ASEAN volumes are expected to rise from 206,000 units a year to 310,000 units a year in 2019. Mitsubishi Motors will also launch new models to assist the turnaround of its important mini-car business in Japan. In the US, the company will improve its dealership networks, targeting a 30% increase in unit sales to 130,000 units in fiscal 2019. In China, Mitsubishi Motors will double the number of dealerships and more than double sales to 220,000 units in fiscal 2019.  Cost Optimization: Mitsubishi Motors will tightly manage production costs, with a target to reduce monozukuri costs by 1.3% per year, in spite of large investments in R&D. Alongside cost management, the company will benefit from growing synergies from its membership of the Renault-Nissan-Mitsubishi alliance. Mitsubishi Motors is seeking synergies totaling more than 100 billion yen over the course of the plan, with the bulk of these to come from efficiencies in procurement and costs avoided in R&D.  Mitsubishi Motors will contribute its expertise in PHEV technology, its capabilities in SUVs and pick-ups, and market strengths in the ASEAN region to the wider synergy program of the Alliance, which aims to double annualized synergies to more than 10 billion euros by the end of 2022.
      "We are refreshing our product line-up, investing in R&D and targeting core market growth," added Mr. Masuko. "Drive for Growth will enable us to continue the transformation of the company over the next three years."
    • By William Maley
      Last summer, Skoda CEO Bernhard Maier said a decision on whether or not the brand would come to the U.S. would be made sometime next year. But it seems that decision has been put on the back burner.
      Autocar reports that Skoda is taking the lead on developing a new low-cost vehicle for emerging markets. Earlier this year, Volkswagen had entered a partnership with Indian automaker Tata Motors to do the same. However, this would be dissolved as cost targets were not met.
      “We will need more time to work on the US plans now. The Group has asked us to lead development of a platform with a strong focus on India and to investigate building that business sustainably and in a predictable manner," said Maier.
      “That is a huge task, and we must always approach projects one step at a time. There is no hurry to rush into the US and no deadline to even decide if we should be looking to go there. There’s no need to make a decision right away.”
      The last two lines are very interesting, considering that Maier was gung-ho on entering the the U.S. last year. As we reported back in December, an anonymous Volkswagen board member said it would be mad for Skoda to enter the U.S., hinting that plans were scrapped.
      We'll keep you posted if anything changes.
      Source: Autocar

      View full article
    • By William Maley
      Last summer, Skoda CEO Bernhard Maier said a decision on whether or not the brand would come to the U.S. would be made sometime next year. But it seems that decision has been put on the back burner.
      Autocar reports that Skoda is taking the lead on developing a new low-cost vehicle for emerging markets. Earlier this year, Volkswagen had entered a partnership with Indian automaker Tata Motors to do the same. However, this would be dissolved as cost targets were not met.
      “We will need more time to work on the US plans now. The Group has asked us to lead development of a platform with a strong focus on India and to investigate building that business sustainably and in a predictable manner," said Maier.
      “That is a huge task, and we must always approach projects one step at a time. There is no hurry to rush into the US and no deadline to even decide if we should be looking to go there. There’s no need to make a decision right away.”
      The last two lines are very interesting, considering that Maier was gung-ho on entering the the U.S. last year. As we reported back in December, an anonymous Volkswagen board member said it would be mad for Skoda to enter the U.S., hinting that plans were scrapped.
      We'll keep you posted if anything changes.
      Source: Autocar
    • By William Maley
      Skoda has been cagey with saying when a possible decision of selling vehicles in U.S. will come. Ask anyone at the Czech automaker and they'll say there isn't a timeframe. It seems now there is a timeframe.
      German business daily Handelsblatt recently talked with Skoda CEO Bernhard Maier. During their talk, Maier revealed a decision for the U.S. will happen sometime next year.
      “In the course of the coming year, we want to decide on the question of North America,” said Maier.
      “When we talk about our plans until 2025, then you cannot leave out one of the most important car markets in the world. Therefore, we examine under what conditions and with what cars the entrance to the U.S. market would be possible.”
      Skoda wants to be in 120 global markets by 2025. At the moment, Skoda is in 102 markets. This will grow next year as the brand will enter Iran, South Korea, and Singapore.
      Source: Handelsblatt (Global Edition)

      View full article
  • My Clubs

  • Who's Online (See full list)