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Thread: Mitsu's goal: boost US sales by 30% -- no rebadged Nissans in the near future

  1. #1

    Mitsu's goal: boost US sales by 30% -- no rebadged Nissans in the near future



    Mitsubishi has released its goals for recovering from the 2016 fuel economy scandal that led to Nissan buying a controlling interest in the company.

    First up: don't expect any re-badged Nissans or "co-developed cars" showing up in Mitsu dealers any time soon:

    Now adopted by a wealthy parent, Mitsubishi has access to Nissan’s technology and platforms, but don’t expect the two automakers to start joint production of new products anytime soon. Only two new models — one with a horrible name (Eclipse Cross), the other a long-delayed niche vehicle (Outlander PHEV) — will appear in showrooms before the end of the decade.
    From: http://www.thetruthaboutcars.com/201...-anytime-soon/

    The company has big plans to boost R&D, sales & profitability in the next 3 years:


    • Three-year plan targets more than 30% increase in unit sales and revenues
    • 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 (e.g. Mirage)
    • Market expansion planned in ASEAN, US and China
    • R&D spending will rise by 50%


    ---

    Here's the full press release:
    INTERNATIONAL NEWS: Mitsubishi Motors launches 'DRIVE FOR GROWTH' plan to increase volumes, revenues and profitability

    Three-year plan targets more than 30% increase in unit sales and revenues
    Operating profit margin to reach 6% 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 (October 18, 2017) – 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:

    1. 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.

    2. 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.

    3. 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 totalling 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."
    Source: https://www.mitsubishi-motors-pr.ca/...s-revenues-and


        __________________________________________

        click to view fuel log View my fuel log 2014 Mirage ES 1.2 manual: 63.2 mpg (US) ... 26.9 km/L ... 3.7 L/100 km ... 75.9 mpg (Imp)


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  3. #2
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    Yeah we'll see. This seems HIGHLY optimistic. Go big or go home I guess?

  4. #3
    Agreed. However, the new Eclipse Cross in the US will help sales a lot. That's the type of vehicle that's hot right now.

    As for the other older models (e.g. Mirage), they're going to have to spend more on marketing and discounts.

        __________________________________________

        click to view fuel log View my fuel log 2014 Mirage ES 1.2 manual: 63.2 mpg (US) ... 26.9 km/L ... 3.7 L/100 km ... 75.9 mpg (Imp)


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    Senior Member bolo's Avatar
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    Well, one thing that would help them is some advertising. They don't advertise around here and I mean at all. We have all kinds of car commercials, but not Mitsubishi. I found out about the Mirage from researching vehicles on cars.com. Before then I had never even heard of it.

        __________________________________________

        click to view fuel log View my fuel log 2017 Mirage SE 1.2 manual: 45.4 mpg (US) ... 19.3 km/L ... 5.2 L/100 km ... 54.5 mpg (Imp)


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    Administrator Daox's Avatar
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    I don't think a boost in 30% is go big or go home. Sounds like more of the same to me. Their yearly sales have been increasing a good amount each year. As they continue to roll out new and updated vehicles this should be possible.
    Custom Mirage products: Cruise control kit, Glove box light, MAF sensor housing, Rear sway bar, Upper grill block

    Current project: DIY Nitrous oxide setup for ~$100

        __________________________________________

        click to view fuel log View my fuel log 2015 Mirage DE 1.2 manual: 47.2 mpg (US) ... 20.1 km/L ... 5.0 L/100 km ... 56.7 mpg (Imp)


  7. #6
    TIM: good point.

    If you look at their US sales numbers, a 30% boost from 2017-2020 is actually lower than the gain they saw from 2013-2016:

    2013
    62,227
    2014
    77,643
    2015
    95,342
    2016
    96,267

    That's a 55% gain from '13-'16.

    http://www.goodcarbadcar.net/2012/10...es-usa-canada/

        __________________________________________

        click to view fuel log View my fuel log 2014 Mirage ES 1.2 manual: 63.2 mpg (US) ... 26.9 km/L ... 3.7 L/100 km ... 75.9 mpg (Imp)


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    Senior Member Subcompact Culture's Avatar
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    I'm very glad to hear this. I also wonder if they'll hang onto the Mirage in the future or will go a bit more upmarket and ditch b-segment all together?

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    Quote Originally Posted by bolo View Post
    Well, one thing that would help them is some advertising. They don't advertise around here and I mean at all. We have all kinds of car commercials, but not Mitsubishi. I found out about the Mirage from researching vehicles on cars.com. Before then I had never even heard of it.
    Here in the Pacific Northwest mitsubishi has Advertisement on the Cable TV and its For the Outlander Sport & Outlander. I'm with You,,, you Have to Advertise!!!! Or Toyota and Honda will flood u out with Sick commercials!
    hello from bluejellybean

        __________________________________________

        click to view fuel log View my fuel log 2014 Mirage DE 1.2 automatic: 38.4 mpg (US) ... 16.3 km/L ... 6.1 L/100 km ... 46.1 mpg (Imp)


  10. #9
    Quote Originally Posted by Subcompact Culture View Post
    I'm very glad to hear this. I also wonder if they'll hang onto the Mirage in the future or will go a bit more upmarket and ditch b-segment all together?
    I wonder too.

    They'll definitely release a new Mirage in the next year or 2 for developing markets, particularly southeast Asia, because it sells very well.

    The Mirage was a big contributor to the growth the company experienced in the last few years in the U.S. & Canada. Even though it may only have been originally seen as a stop-gap while the company updates its model line (ie: makes more SUV's & crossovers).

    But Mirage's US sales have increased every year it's been available. So I hope they'll bring the 7th gen model over. Considering Mirage owners have the highest model loyalty in its class, they'd be silly not to.

        __________________________________________

        click to view fuel log View my fuel log 2014 Mirage ES 1.2 manual: 63.2 mpg (US) ... 26.9 km/L ... 3.7 L/100 km ... 75.9 mpg (Imp)


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    Moderator Eggman's Avatar
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    Maybe then Mitsubishi will call the update Colt hahaha.


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        click to view fuel log View my fuel log 2015 Mirage ES 1.2 manual: 49.6 mpg (US) ... 21.1 km/L ... 4.7 L/100 km ... 59.5 mpg (Imp)


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