Mitsubishi gives dealers hope for 2009

In a market where the global economy is in turmoil and some car manufacturers are close to bankruptcy and cutting production volumes, Mitsubishi Motors in the UK has announced an extensive package to help its dealers through these hard times.

Jim Tyrrell, Mitsubishi’s UK CEO said that, “Our new shareholder, Mitsubishi Corporation, is one of the biggest companies in the world and it is at times like these that having a big, strong parent really pays off. They are taking a very sensible long-term view and want to ensure that our dealers make a profit with a positive cash flow in 2009. To do this, we know we have to achieve a reasonable sales volume, whilst remaining entirely reasonable about our expectations.”

Three Main Areas
Times are certainly tough, with Mitsubishi sales and parts turnover down compared with 2007. Even though service turnover and profits are up on the previous year, Mitsubishi’s UK bosses know that it’s time to put in place an extensive support package to ensure dealer profitability is maximised in 2009.

The dealer support package comes in three main areas:

A significant reduction in dealer charges
This will essentially make owning the Mitsubishi franchise ‘cost free’ as long as basic criteria are met. In total, for an average sized Mitsubishi dealer selling around 300 units per annum, this will equate to a real saving of over £50,000 but for a bigger dealer with multiple sites this could grow to over £100,000 a year, all of which will go straight to the bottom line as it’s not a part of any trading margin.

New product plans
2009 and beyond will see the introduction of a range of greener cars and new Special Editions – including the low CO2 ClearTec range and the all-electric i-MiEV.

Other key cost and finance areas
Other focus areas will include reduced demonstrator requirements and vehicle stocking costs – including 180 days free stocking on new vehicles.

Further Areas Of Support
In addition to the three main support areas, Mitsubishi is also offering dealers a brand-new service to enhance their web presence – all free of charge. The service will enable dealers to manage their site from their desk using a suite of options to let them personalise their site, change sales messages and special offers while keeping fully in-line with Mitsubishi’s corporate identity.

“For some dealers,” said Lance Bradley, Director of Sales and Marketing at Mitsubishi, “this will mean a real and tangible cost saving of several thousand pounds per annum, whilst also improving the quality of information to the customer and sales leads to the dealer.”

In Conclusion
Jim Tyrrell concluded that, “For some in our industry during 2009, survival will mean victory. We have clearly shown that our dealers are key to our ongoing success and have backed that up with real benefits, not just tokenistic gestures.”