Mitsubishi didn’t enter the Renault-Nissan alliance because it wanted to. The cheating scandal from a few years ago prompted Nissan to buy a controlling stake in the Japanese automaker, and even after Carlos Ghosn was replaced by Osamu Masuko as chairman, Mitsubishi hasn’t bounced back to its former glory.
Europe is the market where the ailing company suffers the most despite a small growth in sales volume in 2019 to merely 144,670 vehicles. The board of directors of Mitsubishi, however, decided yesterday to “freeze the introduction of new models” in this part of the world.
But two things are certain. “Sales of existing models will continue” according to an English transcript, and Mitsubishi “will make an announcement promptly if further related matters for disclosure arise.” The latter statement is utmost worrying, and UK-based dealers appear to know what’s what.
The British importer – the Colt Car Company (CCC) - told AM-Online.com that Mitsubishi Motors informed franchised retail partners of “the manufacturer’s plan to exit the UK and European new car markets.” CCC intends to bring emerging brands in the Albion to fill the void, but that’s a bet too.
Picture this. You’re a small dealer in the Midlands, and after Mitsubishi pulls the plug for good, you’ll be left only with servicing and aftersales. Bringing in a Chinese newcomer translates to additional costs for rebranding, training, retooling, and so forth, which is a lot of pressure for a single-brand dealer in these troubled times. The health crisis has made business even harder than before, and the whole automotive industry is under the weather.
A franchisee who wished to remain anonymous told AM that the announcement “does indicate a significant restructure,” one that may reshuffle the balance between Mitsubishi, Nissan, and Renault. More to the point, Mitsubishi would focus its sales efforts on the United States market, Nissan on Japan, and the French automaker on the Old Continent.
What do you think? Is Mitsubishi going to leave Europe?
But two things are certain. “Sales of existing models will continue” according to an English transcript, and Mitsubishi “will make an announcement promptly if further related matters for disclosure arise.” The latter statement is utmost worrying, and UK-based dealers appear to know what’s what.
The British importer – the Colt Car Company (CCC) - told AM-Online.com that Mitsubishi Motors informed franchised retail partners of “the manufacturer’s plan to exit the UK and European new car markets.” CCC intends to bring emerging brands in the Albion to fill the void, but that’s a bet too.
Picture this. You’re a small dealer in the Midlands, and after Mitsubishi pulls the plug for good, you’ll be left only with servicing and aftersales. Bringing in a Chinese newcomer translates to additional costs for rebranding, training, retooling, and so forth, which is a lot of pressure for a single-brand dealer in these troubled times. The health crisis has made business even harder than before, and the whole automotive industry is under the weather.
A franchisee who wished to remain anonymous told AM that the announcement “does indicate a significant restructure,” one that may reshuffle the balance between Mitsubishi, Nissan, and Renault. More to the point, Mitsubishi would focus its sales efforts on the United States market, Nissan on Japan, and the French automaker on the Old Continent.
What do you think? Is Mitsubishi going to leave Europe?