New Plans for Mitsubishi Motors Corp
In May 2020, the Renault-Nissan-Mitsubishi Alliance announced the automobile group’s midterm plans going forward. With many automakers affected by the Coronavirus pandemic, now is the perfect time to rethink business plans and aim for higher ground. It was a type of a Follow-the-Leader scheme, where one automaker places a large bet on a new vehicle, and if it pays off, the other automakers will do the same. Talk about the sacrificial lamb…and it’s Mitsubishi Motors no less, so the automaker decided to also rethink some things as an individual. Mitsubishi Motors Corporation (MMC) recently announced its own three-year midterm business plan, from now until 2022, called “Small but Beautiful”.
Unlike the “Small Batch, Big Impact” initiative, Mitsubishi is focusing more on itself and its subsidiaries this time around, looking towards newer and better technology as well as its own sustainability. Mitsubishi Motors may be doing better with the Alliance, but its competition in several markets isn’t very strong. We haven’t seen three of the newest Mitsubishi Concepts set foot in the U.S., they never might. The automaker has already agreed to halt new model launches in Europe, only offering parts and services on models already released. If Europe isn’t getting new models, then what hope is there for the U.S.?
Right now, the main focus is about bouncing back. There are four points of action in this new strategy – (1) reduce fixed costs by 20-pecent compared to 2019, (2) focus management resources on the Association of Southeast Asian Nations (ASEAN) and increasing market share by 11-percent or more, (3) develop businesses in Africa, Oceania, and South America to create a second business pillar, and (4) strengthen their eco-friendly model lineup, such as PHEVs and EVs, with new models launching in 2022. But will any of these see American soil?
Regardless, Mitsubishi Motors does have plans in the automotive world that could change things. As it is understood, Mitsubishi Motors is supposed to be at the helm of plug-in hybrid electric vehicle (PHEV) development, with its first vehicle to be a subcompact or large plug-in hybrid. While we wait to see what it is, Mitsubishi will also be working closely with Alliance partner Nissan to help with the development of electric vehicles (EVs) and EV development. Set to share development and production costs, as well as maximize production volume and profit, Nissan has already agreed to let produce models for Mitsubishi to rebadge and vice-versa.
The first vehicle to test out this new strategy between Mitsubishi and Nissan will be the production of an overseas model, the next generation of the Xpander MPV and Xpander Cross SUV, not to be confused with the Eclipse Cross. The Xpander is practically a minivan, although called a “Multi-Purpose Vehicle” (MPV), and let’s face it – is the minivan market really going anywhere? There isn’t a whole lot of competition here in America, and that’s because the main focus is on SUVs and crossovers. Why get a boring minivan when you can get the passenger and cargo space while also getting some off-road capability, or modern technology, or just drive something that doesn’t scream, “Soccer mom!”
We’ll keep looking to the horizon for Mitsubishi Motors and what the automaker will be up to next. Watch with us University Mitsubishi social media.