Momentum continues without Russia

Mitsubishi Motors Europe (MME) continues to build up on its sales momentum with an increase of 8% over the first six months of CY 2007 compared to the same period of CY 2006 (118,389 sales vs. 109,488 in CY2006, excluding Russia).

It should be noted that this good result was achieved in spite of the separation of Russia from Mitsubishi Motors Europe’s business territory since April 1st, 2007. Previously the Number One market for MME and the source of much commercial growth, this promising country now forms a stand-alone business region reporting directly to Japan.

Now able to focus on Western and Central Europe, Mitsubishi Motors Europe continues to capitalize on the on-going development of the Ukrainian market (+ 100% vs. H1 CY 2006 with 10,964 sales), of Central Europe (esp. Poland, Czech Republic, Slovakia or the Balkans), the Baltic states and Israel.

Combined with a notable come-back in France (+ 28%, boosted by the successful introduction of Outlander and Pajero), continued growth in Belgium (+ 13%), Ireland (+ 11%), Switzerland (+ 8%) or Austria (+ 32%) and stable results in Italy and Spain (resp. # 4 and 5), these efforts have helped offsetting the decrease of Germany (- 8%) affected by a depressed local market environment (January-June total market: – 9.2%) and the United Kingdom (-10%) where a combination of supply constraints for the new models and tougher than anticipated competition have eroded Mitsubishi’s positions.

Overall, MME’s good performance was undoubtedly supported by the successful local introductions of the next generation of Outlander and Pajero.

Launched in waves, market after market since autumn 2006 (Pajero) and early 2007 (Outlander), these two models have added to the strong sales already gained by the L200 Sport Utility Truck introduced in early 2006. New L200 is now Mitsubishi Motors’ second best seller in Europe, behind Colt.

Supporting MME’s strategy of profit & image vs. volume, all these SUVs have met their targets, re-acquainted many European customers to Mitsubishi’s 4-wheel drive reputation and generated higher profitability due to a richer mix (for Pajero, 54% of the volume is represented by the highest “Intense+” and “Instyle” grades, whilst for Outlander this share is of 70%).