Mitsubishi Motors sales in Europe

In European markets severely hit by the global financial crisis, Mitsubishi Motors Europe (MME) sales results for calendar year 2008 have both been a consequence of the economic circumstances and a first glimpse at the change-over slowly taking place for the brand, from an SUV-focused nameplate to being a supplier of non-mainstream passenger cars / crossovers, with an SUV presence.

In the 33 countries where it operates, MME sales have decreased by 18%: As a starting point, all “Big Five” markets have dramatically dropped for all manufacturers, with falls as important as –28 % for Spain (total market).

Consistent with Industry Trends

Consistent with industry trends (economic crisis + volatility of fuel prices + CO2-based taxes), large SUVs were amongst the hardest hit. For MME, Pajero/Montero/Shogun lost 46% and L200 25% - whilst retaining their loyal professional users.

With these SUVs being historically the main contributors to the Mitsubishi business in Big Five countries such as the UK, Italy, Spain or France, these markets , logically, suffered the most (-23.3%, -35.8 %, -43.2 % and -45 % respectively).

During the course of 2008, the Ukraine (MME’s # 3 in CY2007 with 27,585 units) severed most of its business links with MME, reporting now directly to MMC in Tokyo.

In parallel, on the emerging Mitsubishi passenger car front:

Colt Run-Out

For the Colt line, CY2008 was essentially a run-out year, followed by the preparations for launch of the Next Generation model, launched (in some markets) during the last quarter of 2008.

Lancer Family Launch

For the Lancer family, the past year saw the successive and slow ramp-ups of the different variants, with Sportback - the volume model - only introduced after the summer in most markets and limited in volume by volume constrains at the factory.

Moving Forward

Looking forward post-crisis, Mitsubishi Motors is committed to continue reducing its market and image dependency on large SUVs in the region with tangible signals to be sent to the marketplace short- to mid-term:

Its passenger car activities will continue their expansion with adequate volume and additional variants for Colt and Lancer, well tailored to European requirements.

In particular, the forthcoming introduction of the low CO2 emissions Colt Clear Tec (with a class leading 115g/km 3-cylinder 1.1 l) over the coming weeks and - at a later stage - of Mitsubishi’s proprietary 4N13 all-new Euro 5 Diesel engine for Lancer should strengthen both models’ showroom appeal.

Supporting this development in the passenger car sector, the revolutionary i MiEV electric car could potentially add to Mitsubishi’s green credentials with European stakeholders, should the feasibility testing & study currently under way prove positive.

Building on Outlander’s success, Mitsubishi will start enlarging this family of “on-road crossovers” with further refinement of the existing car as well as the later introduction of a more compact companion model, inspired by the acclaimed 2007 Concept-cX show car.

Last but not least, in this new perspective, Pajero/Montero/Shogun and L200 will nonetheless continue Mitsubishi’s tradition off the beaten tracks with appropriate updating, in line with customers’ requests, all to be detailed at a later stage.