Big 3 Are Performing Poorly, But So Is Mitsubishi
Attempting to paint a rosy picture of the current automotive slump in the US is akin to trying to put lipstick on a pig — it is almost impossible to do and, if you were successful, you’d still be left with one ugly porker!
GM, Ford, and Chrysler are in a world of hurt with year-to-date sales through June 30th down 16.3, 14.0, and 22.0% respectively (according to AutoData Corp.) There are a few shining lights in each fleet including the Chevrolet Malibu, Ford Fusion, and the Jeep Compass. Beyond that, these three are paying for their over reliance on big trucks and SUVs, fleet mainstays for many years.
It is easy to focus on the three major U.S. manufacturers, while not taking into account the rest of the market. For sure, Honda and Subaru are bucking the trend and seeing sales rise, but there is one manufacturer whose YTD sales drop is making Chrysler’s plight look almost good — Mitsubishi. So far this year Mitsubishi sales have dropped 23.4%, but most notably the company was off by 42.4% in June. This isn’t a company whose fleet is dominated by SUVs although its Endeavor and Outlander have contributed to a slide in truck sales amounting to a near-halving of volume for the year.
The sporty Eclipse, compact Lancer, and the midsize Galant round out the Mitsubishi car line up, but only the Lancer is selling. Which underscores a bigger problem for Mitsubishi: the limited appeal Eclipse and the aged Galant are the only two other vehicles available, unless a rebadged Dodge Dakota (Raider) has some sort of attraction worth noting.
Mitsubishi has one factory in the US, reports Auto Trends, but has cut back on production of the Endeavor and Galant due to slow sales. As recently as 2000, Mitsubishi sold 314,000 vehicles in the US (including some models built for Chrysler), but if trends continue they’ll be hard-pressed to sell 108,000 for the entire year. This isn’t one company you’ll want to bet money on!
When thinking about the Japanese automotive industry, it is often put in the best light possible. Certainly, the glow from Toyota, Honda, Nissan, Subaru, and Mazda have contributed to the aura, but Daihatsu and Isuzu are two that have failed with Suzuki still trying to find its footing here.
Will Mitsubishi make its exit one day? Maybe not for awhile, but based on its current sales volume, product offering, and huge shrinkage from 2000, the possibility of that happening looms large.
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