Mitsubishi’s unexpected announcement of its gradual withdrawal from Europe will cause concern for its many thousands of employees here.
Sadly, the writing has been on the wall for some time.
There's a large number of complex factors that led to bosses realising the brand's position in European markets was untenable.
The fallout from Dieselgate harmed sales of its core 4x4 models in recent years. The Outlander PHEV, a relative success that helped Mitsubishi’s UK arm to its highest annual sales for a decade in 2018, has since fallen foul of a change in government stance on plug-in hybrids.
Then there’s the rapidly changing European Union emissions legislation, demanding massive research and development investment to develop low-emissions alternatives (likely too much when weighed up against the firm’s European sales).
And the wide-ranging disruption to the Renault-Nissan-Mitsubishi Alliance caused by Carlos Ghosn's dramatic departure didn’t help matters.
But the biggest challenge? Rivals upping their game in Europe in a way that Mitsubishi was unable to match. Japanese brands caught home-market equivalents napping when they burst onto the scene in the 1960s and 1970s and enjoyed decades of success as a result. But the big European brands spent big to catch up, plus new challengers entered the scene in the form of Hyundai and Kia. Even a conglomerate as large and diverse as Mitsubishi couldn’t keep up.
Years of underinvestment have left the brand floundering. The Mirage, Mitsubishi ASX, Outlander and Shogun (which is based on a 20-year-old design) are in dire need of replacements, and even new products such as the Eclipse Cross and the continuing popularity of the L200 weren’t enough.
The coronavirus pandemic was the final nail in the coffin: Mitsubishi’s 2019 UK market share of 0.71% was already tiny, but its registrations have fallen by more than 50% so far this year.
Cars such as the Lancer Evolution will be fondly remembered by petrolheads and rally fans alike. But six years have passed since its death and nothing has come along to inspire the same enthusiasm.
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I have had courtesy Mirages,
I have had courtesy Mirages, they would have been unnacceptable to drive even in 1980. The ASX needed hybrid to stay in the game but didn't get it. Refinement is poor but it actually drives quite well. The Eclipse is oddball and again needed hybrid and didn't get it.The Outlander PHEV needed to move on, particularly it has suffered from the new WLTP assessments that have reduced its official EV range and put its company car tax band up when others are dipping into the lower bands. It needed more motor power and a bigger battery to stay in the game, 40 miles range could have rejuvinated sales some what in the UK. also oddly it missed some pretty common technology now even on top spec cars and no options to add what you want.
The Colt-Mirage was a perfect example
The Mitsubishi Mirage sums up this company perfectly. The car is essentially a 2004 Colt/ Smart ForFour with new panels and made in Thailand rather than europe- and still sold in 2020.Having owned a ForFour, and my girlfriend owning a 2014 Mirage (it was a gift from an elderly family member), it is clear and apparent that all Mitsubishi did was de-content and engineer their new car for ultimate cheapness. They cannot even be bothered to paint under the bonnet/ wheel arches or boot floor (its still in primer coat). The brakes and suspension are de-contented and worse. The interior is decontented. The seats are worse.
Yet, the thing is not even cheap when new (when compared to the Suzuki/ Dacia/ Aygo offerings). No wonder no one is buying it- it is a demonstratably worse car than what they sold fifteen years ago!
The colt was indeed a smart
Subaru is next.
Relentless commercial suicide.