Mitsubishi Motors

Mitsubishi Motors Corporation (Japanese: 三菱自動車工業株式会社 , Hepburn: Mitsubishi Jidōsha Kōgyō KK, IPA: [mʲitsɯꜜbʲiɕi̥] [6] ) is a Japanese multinational automotive manufacturer headquartered in Minato, Tokyo, Japan. [7] In 2011, Mitsubishi Motors was the sixth thickest Japanese automaker and the sixteenth thickest worldwide by production. [8] From October two thousand sixteen onwards, Mitsubishi is one-third (34%) wielded by Nissan, and thus a part of the Renault-Nissan Alliance. [1]

• Transportation:

Besides being part of the Renault-Nissan Alliance, it is also a part of Mitsubishi keiretsu, formerly the fattest industrial group in Japan, through the corporation’s minority 20% stake in Mitsubishi Motors, and the company was originally formed in one thousand nine hundred seventy from the automotive division of Mitsubishi Strong Industries. [9]

Mitsubishi Fuso Truck and Bus Corporation was formerly a part of Mitsubishi Motors, but is now separate from Mitsubishi Motors, which builds commercial grade trucks, buses and strong construction equipment, and is wielded by Daimler AG (tho’ Mitsubishi proceeds to own a petite stake).

Contents

Mitsubishi’s automotive origins date back to 1917, when the Mitsubishi Shipbuilding Co., Ltd. introduced the Mitsubishi Model A, Japan’s very first series-production automobile. [Ten] An entirely hand-built seven-seater sedan based on the Fiat Tipo Three, it proved expensive compared to its American and European mass-produced rivals, and was discontinued in one thousand nine hundred twenty one after only twenty two had been built. [11]

In 1934, Mitsubishi Shipbuilding was merged with the Mitsubishi Aircraft Co., a company established in one thousand nine hundred twenty to manufacture aircraft engines and other parts. The unified company was known as Mitsubishi Intense Industries (MHI), and was the largest private company in Japan. [12] MHI concentrated on manufacturing aircraft, ships, railroad cars and machinery, but in one thousand nine hundred thirty seven developed the PX33, a prototype sedan for military use. It was the very first Japanese-built passenger car with full-time four-wheel drive, a technology the company would come back to almost fifty years later in its quest for motorsport and sales success. [13]

Post-war era Edit

Instantly following the end of the 2nd World War, the company returned to manufacturing vehicles. Fuso bus production resumed, while a petite three-wheeled cargo vehicle called the Mizushima and a scooter called the Silver Pigeon were also developed. However, the zaibatsu (Japan’s family-controlled industrial conglomerates) were ordered to be dismantled by the Allied powers in 1950, and Mitsubishi Intense Industries was split into three regional companies, each with an involvement in motor vehicle development: West Japan Heavy-Industries, Central Japan Heavy-Industries, and East Japan Heavy-Industries.

East Japan Heavy-Industries began importing the Henry J, an inexpensive American sedan built by Kaiser Motors, in knockdown kit (CKD) form in 1951, and continued to bring them to Japan for the remainder of the car’s three-year production run. The same year, Central Japan Heavy-Industries concluded a similar contract with Willys (now possessed by Kaiser) for CKD-assembled Jeep CJ-3Bs. This deal proved more durable, with licensed Mitsubishi Jeeps in production until 1998, thirty years after Willys themselves had substituted the model.

By the beginning of the 1960s Japan’s economy was gearing up; wages were rising and the idea of family motoring was taking off. Central Japan Heavy-Industries, now known as Shin Mitsubishi Heavy-Industries, had already re-established an automotive department in its headquarters in 1953. Now it was ready to introduce the Mitsubishi 500, a mass market sedan, to meet the fresh request from consumers. It followed this in one thousand nine hundred sixty two with the Minica kei car and the Colt 1000, the very first of its Colt line of family cars, in 1963. In 1964, Mitsubishi introduced its largest passenger sedan, the Mitsubishi Debonair as a luxury car primarily for the Japanese market, and was used by senior Mitsubishi executives as a company car.

West Japan Heavy-Industries (now renamed Mitsubishi Shipbuilding & Engineering) and East Japan Heavy-Industries (now Mitsubishi Nihon Heavy-Industries) had also expanded their automotive departments in the 1950s, and the three were re-integrated as Mitsubishi Powerful Industries in 1964. Within three years its output was over 75,000 vehicles annually. Following the successful introduction of the very first Galant in one thousand nine hundred sixty nine and similar growth with its commercial vehicle division, it was determined that the company should create a single operation to concentrate on the automotive industry. Mitsubishi Motors Corporation (MMC) was formed on April 22, one thousand nine hundred seventy as a wholly possessed subsidiary of MHI under the leadership of Tomio Kubo, a successful engineer from the aircraft division. [ citation needed ]

The logo of three crimson diamonds, collective with over forty other companies within the keiretsu, predates Mitsubishi Motors itself by almost a century. It was chosen by Iwasaki Yatarō, the founder of Mitsubishi, as it was suggestive of the emblem of the Tosa Clan who very first employed him, and because his own family crest was three rhombuses stacked atop each other. The name Mitsubishi ( 三菱 ) consists of two parts: “mitsu” meaning “three” and “hishi” (which becomes “bishi” under rendaku) meaning “water caltrop” (also called “water chestnut”), and hence “rhombus”, which is reflected in the company’s logo.. [14]

1970s Edit

Part of Mr. Kubo’s expansion strategy was to increase exports by forging alliances with well-established foreign companies. Therefore, in one thousand nine hundred seventy one MHI sold U.S. automotive giant Chrysler a fifteen percent share in the fresh company. Thanks to this deal, Chrysler began selling the Galant in the United States as the Dodge Colt (which was the very first rebadged Mitsubishi product sold by Chrysler), pushing MMC’s annual production beyond 250,000 vehicles. In 1977, the Galant was sold as the Chrysler Sigma in Australia.

By 1977, a network of “Colt”-branded distribution and sales dealerships had been established across Europe, as Mitsubishi sought to begin selling vehicles directly. Annual production had by now grown from 500,000 vehicles in one thousand nine hundred seventy three to 965,000 in 1978, when Chrysler began selling the Galant as the Dodge Challenger and the Plymouth Sapporo. However, this expansion was beginning to cause friction; Chrysler witnessed their overseas markets for subcompacts as being directly encroached by their Japanese fucking partners, while MMC felt the Americans were requiring too much say in their corporate decisions.

1980s Edit

Mitsubishi eventually achieved annual production of one million cars in 1980, but by this time its ally was not so healthy; As part of its battle to avoid bankruptcy, Chrysler was compelled to sell its Australian manufacturing division to MMC that year. The fresh Japanese owners renamed it Mitsubishi Motors Australia Ltd (MMAL).

In 1982, the Mitsubishi brand was introduced to the American market for the very first time. The Tredia sedan, and the Cordia and Starion coupés, were originally sold through seventy dealers in twenty two states, with an allocation of 30,000 vehicles inbetween them. This quota, restricted by mutual agreement inbetween the two countries’ governments, had to be included among the 120,000 cars earmarked for Chrysler. Toward the end of the 1980s, as MMC initiated a major shove to increase its U.S. presence, it aired its very first national television advertising campaign, and made plans to increase its dealer network to three hundred forty dealers.

In one thousand nine hundred eighty six Mitsubishi reached an agreement with Liuzhou Automotive to assemble their Minicab kei van and truck there, making Mitsubishi the third Japanese manufacturer (after Daihatsu and Suzuki) to begin assembly in China. Before receiving government approval for this project, Mitsubishi had had to express contrition over “defective” Mitsubishi trucks imported to China in one thousand nine hundred eighty four and 1985. [15] By 1989, Mitsubishi’s worldwide production, including its overseas affiliates, had reached 1.Five million units.

Diamond-Star Motors Edit

Despite the ongoing tensions inbetween Chrysler and Mitsubishi, they agreed to unite in a vehicle manufacturing operation in Normal, Illinois. The 50/50 venture provided a way to circumvent the voluntary import limitations, while providing a fresh line of compact and subcompact cars for Chrysler. Diamond-Star Motors (DSM)—from the parent companies’ logos: three diamonds (Mitsubishi) and a pentastarlet (Chrysler)—was incorporated in October 1985, and in April one thousand nine hundred eighty six ground was violated on a 1.9 million square-foot (177,000 m²) production facility. In 1987, the company was selling 67,000 cars a year in the U.S., but when the plant was finished in March one thousand nine hundred eighty eight it suggested an annual capacity of 240,000 vehicles. Originally, three platform-sharing compact Two+Two coupés were released, the Mitsubishi Eclipse, Eagle Talon and Plymouth Laser, with other models being introduced in subsequent years.

1988 IPO Edit

Mitsubishi Motors went public in 1988, ending its status as the only one of Japan’s eleven auto manufacturers to be privately held. Mitsubishi Intense Industries agreed to reduce its share to twenty five percent, retaining its position as largest single stockholder. Chrysler, meantime, enlargened its holding to over twenty percent. The capital raised by this initial suggesting enabled Mitsubishi to pay off part of its debts, as well as to expand its investments via south-east Asia where it was by now operating in the Philippines, Malaysia, and Thailand.

1990s Edit

Hirokazu Nakamura became president of Mitsubishi in one thousand nine hundred eighty nine and steered the company in some promising directions, with the advent of the Japanese asset price bubble “market correction” that led to the Lost Decade as a result of the Plaza Accord agreement signed in 1985. Sales of the company’s fresh Pajero were bucking conventional wisdom by becoming popular even in the crowded streets of Japan.

It was powerfully rumored by Japanese media, in one thousand nine hundred ninety two and 1993, that Mitsubishi Motors intended a hostile acquisition of Honda. While Mitsubishi was railing high off of profitable vehicles such as the Diamante and Pajero, Honda was caught off-guard with the SUV and truck boom and was losing concentrate after the illness and later death of its founder. However, Honda CEO Nobuhiko Kawamoto took drastic steps, such as exiting Formula one and discontinuing unprofitable vehicles to avert a Mitsubishi takeover, which proved effective. [16]

Albeit sales of SUVs and light trucks were flourishing in the U.S., Japan’s car manufacturers dismissed the idea that such a trend could occur in their own country. Nakamura, however, enhanced the budget for sport utility product development, and his gamble paid off; Mitsubishi’s broad line of four-wheel drive vehicles, from the Mitsubishi Pajero Mini kei car to the Delica Space Gear passenger van, railed the wave of SUV-buying in Japan in the early to mid-1990s, and Mitsubishi spotted its overall domestic share rise to 11.6 percent in 1995.

Independence Edit

In 1991, Chrysler sold its equity stake in Diamond-Star Motors to its fucking partner, and from then on they continued to share components and manufacturing on a contractual basis only. Chrysler decreased its interest in Mitsubishi Motors to less than three percent in 1992, and announced its decision to divest itself of all its remaining shares on the open market in 1993. The two companies then terminated their close alliance with Chrysler. With DMS, and Mitsubishi no longer supplying parts for engines and transmissions for Chrysler.

Volvo Edit

Mitsubishi participated in a joint venture with rival car-maker Volvo and the Dutch government at the former DAF plant in Born in 1991. The operation, branded NedCar, began producing the very first generation Mitsubishi Carisma alongside the Volvo S40/V40 in 1996. The factory later produced the latest Mitsubishi Colt and the related Wise Forfour (fucking partner DaimlerChrysler cancelled its production in 2006). Production of European market-bound Mitsubishi Outlanders, and badge engineered versions of this vehicle, were also manufactured in the Netherlands until 2012, when the company sold the plant to the Dutch coach manufacturer VDL Groep. [17] [Eighteen] [Nineteen]

Upon selling its Volvo Cars division to Ford in January 1999, Volvo Group purchased a 5% stake in Mitsubishi Motors in November of that same year, but sold its stake to shareholder DaimlerChrysler in March 2001. [20]

PSA Peugeot Citroën Edit

Mitsubishi has been allied with PSA Peugeot Citroën since 1999, after they agreed to co-operate on the development of diesel engines using the Japanese company’s gasoline direct injection (GDI) technology. [21] They united again in two thousand five to develop the Peugeot four thousand seven and Citroën C-Crosser sport utility vehicles (SUVs), based on the Japanese company’s Mitsubishi Outlander. [22]

Two further ties were established inbetween the companies in 2008, very first with the establishment of a jointly possessed production facility in Kaluga which will manufacture up to 160,000 Outlander-based SUVs for the fast-growing Russian market. [23] They are also collaborating in the research and development of electrical powertrains for petite urban vehicles. [24] Japanese newspaper Nikkei claims that Peugeot Citroën will sell the electrical city car Mitsubishi i MiEV in Europe by 2011. [25]

Volkswagen Edit

In Europe, Mitsubishi Motors used diesel engines supplied by the German manufacturer Volkswagen for some of its mid-sized cars, [26] such as the Lancer, [27] Grandis, [28] and Outlander. [29] From 2010, they were superseded with Mitsubishi’s own developed 4N1 diesel engine.

Colt and Lonsdale Edit

The Colt name shows up frequently in Mitsubishi’s history since its introduction as a rear-engined 600cc sedan in the early 1960s. Today, it most commonly refers to the Mitsubishi Colt subcompact in the company’s line-up, but is also the name of MMC’s import/distribution company in the United Kingdom, the Colt Car Company, established in 1974. For the very first decade of its existence, before Far Eastern auto manufacturers had established their reputations, its cars carried the “Colt” badge in Britain instead of “Mitsubishi”.

In one thousand nine hundred eighty two and 1983, Mitsubishi introduced the Australian-built Mitsubishi Sigma to the UK as the Lonsdale Sigma in an attempt to circumvent British import quotas, but the fresh brand was unsuccessful. It then carried Mitsubishi Sigma badges in 1983–84 before abandoning this operation entirely.

Proton Edit

Malaysian manufacturer Proton was originally very dependent on Mitsubishi Motors, only assembling their one thousand nine hundred eighty five Proton Saga using MMC components at a freshly established facility in Shah Alam. Subsequent models like the Wira and Perdana were based on the Lancer/Colt and Galant/Eterna respectively, before the company ultimately produced entirely self-developed vehicles, the Waja in 2001, and the Proton Gen-2 in 2004. At its peak, the car maker managed seventy five percent of its domestic market, even after Mitsubishi ended their 22-year partnership in 2005, selling their 7.9 percent stake for RM384 million [30] to Khazanah Nasional Berhad. However, in October 2008, Proton renewed its technology transfer agreements with MMC, and the Proton Inspira (the Proton Waja replacement) is to be based on the Mitsubishi Lancer platform and official launched on ten November 2010. [ needs update ]

Hyundai Edit

South Korean manufacturer Hyundai, built the Hyundai Pony in one thousand nine hundred seventy five using MMC’s Saturn engine and transmissions. Korea’s very first car, it remained in production for thirteen years. Mitsubishi held up to a ten percent stake in the company, until disposing of the last of its remaining shares in March 2003.

The one thousand nine hundred eighty five Hyundai Excel was sold in the United States as the Mitsubishi Precis inbetween one thousand nine hundred eighty seven and 1994, whereas several other Mitsubishi models were rebadged as Hyundai, namely the Mitsubishi Chariot (as the Hyundai Santamo), the Mitsubishi Pajero (as the Hyundai Galloper) or the Mitsubishi Delica (as the Hyundai Porter).

Hindustan Edit

Indian manufacturer Hindustan had a joint venture with Mitsubishi that began 1998. The plant is located in Thiruvallur, Tamil Nadu.

Models produced include: Mitsubishi Pajero Sport ((Third generation)) until 2016.

Samcor Edit

The South African Motor Corporation (Samcor) was a joint venture created in 1985, which produced Ford, Mazda and Mitsubishi vehicles for the local South African market, with the Mitsubishi Delica being rebadged as the Ford Husky and the Mitsubishi Canter as the Ford Triton. [31] [32]

Nissan Edit

In May 2016, in the wake of the emissions scandal, Nissan set the acquisition of a 34% stake in Mitsubishi Motors, with the aim of making Nissan the largest and controlling shareholder of Mitsubishi and turning Mitsubishi into a member of the Renault-Nissan Alliance. Nissan has said that they plan to share some car platforms and jointly develop future vehicles with Mitsubishi Motors. [33] The Nissan acquisition was ended in October 2016. [1]

Chinese joint ventures Edit

As of two thousand six Mitsubishi has four joint ventures with Chinese playmates. [34]

Japan Sales Channels Edit

Mitsubishi Motors maintained two retail sales channels that sold specific models, called “Car Plaza” and “Galant Shop”. Certain models were off the hook to either channel, while some models were available at both channels, as required by local Japanese market conditions. More recently, due to cancellation of larger sedans, the sales channels have been combined into one franchise that sell all models, including kei cars and commercial delivery vehicles.

Asian economic downturn Edit

The benefits Mitsubishi had seen because of its strong presence in south-east Asia reversed themselves as a result of the economic crisis in the region which began in one thousand nine hundred ninety one with the advent of the collapse of the Japanese asset price bubble, referred to in Japan as the beginning of the Lost Decade and continued to 1997. The collapse was partly the result of the Plaza Accord agreement in 1985, which sought to equalize the United States dollar with the Japanese yen and the German mark. In September of that year the company closed its Thai factory in response to a crash in the country’s currency and plummeting consumer request. The large truck plant, which had produced 8,700 trucks in 1996, was shut down indefinitely. In addition, Mitsubishi had little support from sales in Japan, which slowed considerably via one thousand nine hundred ninety seven and were affected by that country’s own economic uncertainty into 1998. Other Japanese automakers, such as Toyota and Honda, bolstered their own slipping domestic sales with success in the U.S. However, with a comparatively petite percentage of the American market, the influence of the turmoil in the Asian economy had a greater effect on Mitsubishi, and the company’s one thousand nine hundred ninety seven losses were the worst in its history. In addition, it lost both its rank as the third largest automaker in Japan to Mazda, and market share overseas. Its stock price fell precipitously, prompting the company to cancel its year-end dividend payment. [35]

In November 1997, Mitsubishi hired Katsuhiko Kawasoe to substitute Takemune Kimura as company president. Kawasoe unveiled an aggressive restructuring program that aimed to cut costs by ¥350 billion in three years, reduce personnel by 1,400, and come back the company to profitability by 1998. But while the program had some initial success, the company’s sales were still stagnant as the Asian economy continued to sputter. In 1999, Mitsubishi was compelled once again to skip dividend payments. Its interest-bearing debt totalled ¥1.7 trillion.

Vehicle defect cover-up Edit

In what was referred to as “one of the largest corporate scandals in Japanese history”, [36] [37] Mitsubishi was twice coerced to admit to systematically covering up defect problems in its vehicles. Four defects were very first publicised in 2000, but in two thousand four it confessed to twenty six more going back as far as 1977, including failing brakes, fuel leaks and malfunctioning clutches. The effect on the company was catastrophic, forcing it to recall 163,707 cars (156,433 in Japan and 7,274 overseas) for free repair. [38] Further recalls by Fuso truck & bus brought the total number of vehicles requiring repair to almost one million. The affair led to the resignation and subsequent arrest of president Kawasoe, along with twenty three other employees who were also implicated. [39] Three of them have since been acquitted, with the judge stating that there was no official request from the Transport Ministry ordering them to submit a defect report. [40]

0–0–0 Edit

In an effort to boost sales in the U.S. in the early 2000s, Mitsubishi began suggesting a “0–0–0” finance offer—0% down, 0% interest, and $0 monthly payments (all repayments deferred for twelve months). Primarily, sales leapt, but at the end of the year’s “grace period” numerous credit-risky buyers defaulted, leaving Mitsubishi with used vehicles for which they had received no money and which were now worth less than they cost to manufacture. The company’s American credit operation, MMCA, was eventually coerced to make a US$454 million provision against its two thousand three accounts as a result of these losses. [41] As a result, sales plummeted to 243,000 in 2003, 139,000 in 2004, 124,000 in 2005, and 119,000 in 2006. [42]

End of Australian production Edit

In October 2005, MMAL introduced the Mitsubishi three hundred eighty to the Australian market as the replacement for its long-running Mitsubishi Magna, and the foot vehicle being built at its Australian assembly plant at Clovelly Park. Despite an investment of A$600 million developing the car, initial sales projections proved optimistic; after only six months Mitsubishi scaled back production from 90/day, and diminished the working week from five days to four. [43] It remained an ongoing concern in the Australian auto industry as to whether this would be sufficient to restore the plant to profitability and ensure its long-term survival.

The drop in local sales could not be mitigated by exports outside of the Australian and Fresh Zealand market. On February Five, two thousand eight Mitsubishi Motors Australia announced it would be closing down its Adelaide assembly plant by the end of March. Inbetween seven hundred and one thousand direct jobs would be lost and up to two thousand jobs will be lost in industries supporting Mitsubishi’s local manufacturing operations. [44]

End of European production Edit

With operating losses ¥22 billion ($287 million) in Europe for the fiscal year to March due to stagnant sales in a continent beset by uncertainty of a furious debt crisis, ultimately in February two thousand twelve Mitsubishi have determined to withdraw production in Europe by the end of 2012. On October one it was announced that the Dutch industrial conglomerate VDL Groep had taken over NedCar from Mitsubishi, retaining all 1,500 employees. [45]

End of North American production Edit

In 1988, Mitsubishi opened a production facility in the United States in Normal, Illinois. The facility was known as Diamond-Star Motors and was originally a joint venture with Chrysler, however Chrysler sold its stake in the plant to Mitsubishi in 1993. After one thousand nine hundred ninety five the facility was known as Mitsubishi Motors Manufacturing America (MMMA). At its peak in 2000, the facility produced over 222,000 vehicles per year, however following the decline of Mitsubishi in North America, the plant operated well below capacity for years.

Eventually, in July 2015, Mitsubishi announced that it would close the plant by November, but would proceed to sell automobiles in North America. In 2014, the plant had produced just Sixty-nine,000 vehicles, toughly one-quarter of its capacity. [46] Production at the plant ended on thirty November 2015, and most of the employees were laid off. The plant continued to operate with a minimal staff to produce replacement parts until May 2016, after which it closed permanently. [47]

Fuel mileage scandal Edit

In early 2016, Mitsubishi fucking partner Nissan found discrepancies inbetween Mistubishi information and actual fuel consumption while working in fresh micro cars for both companies, the eK Wagon, eK Space, Nissan Dayz and Nissan Dayz Roox. Mitsubishi manufactures micro cars for Nissan, which no longer makes that class of vehicle itself. Mitsubishi admitted that they had been providing wrong information on fuel consumption from two thousand two onwards, using inaccurate test methods. [48] Later, the company said it used fuel economy testing methods that did not obey with Japanese regulations for twenty five years, much longer than previously known. [49] Mitsubishi management said they did not know about the issue and that the wrong information came from the micro car development department. They ordered an investigation led by investigators not affiliated with the company. [50] The resultant scandal culminated in Nissan acquiring a controlling interest in MMC in May 2016. [51] Nissan agreed to invest 237.Four billion yen ($Two.Two billion US) in exchange for receiving a 34% ownership stake in Mitsubishi Motors. Due to dilution of existing shares, other Mitsubishi group companies (Mitsubishi Powerful Industries, Mitsubishi Corp., and Bank of Tokyo-Mitsubishi UFJ) will see their combined holdings in Mitsubishi Motors fall to about 20% from 34% presently. [52]

Mitsubishi Motors North America stated that vehicles sold from two thousand thirteen in the United States featured accurate fuel economy information and were thereby not affected by the scandal. [53]

In May 2016, Mitsubishi Motors announced Tetsuro Aikawa to resign as the president of the company in effect on June. Both Mitsubishi Motors and Aikawa denied any top management involvement in the mileage scandal. The company said much of the mileage-testing work was assigned to a subsidiary and there was a lack of scrutiny of such work. [54]

After a starvation of fresh investment caused by lack of cashflow, the company introduced the award-winning Mitsubishi i kei car in 2006, its very first fresh model in twenty nine months, while a revised Outlander has been introduced worldwide to rival in the popular XUV market niche. [55] The next generation of its Lancer and Lancer Evolution was launched in two thousand seven and 2008. [56]

Slow selling vehicles were eliminated from the U.S. market, purchase projections for the Global Engine Manufacturing Alliance have been scaled back, and Ten,000 jobs have been shed to cut costs with Three,400 workers at its Australian plant and other loss-making operations still under threat. Meantime, in an effort to increase production at its U.S. facility, [57] fresh export markets for the Eclipse and Galant are being explored in Ukraine, the Middle East, and Russia, where the company’s bestselling dealership is located. [58] Mitsubishi has also been active in OEM production of cars for Nissan, [59] and announced a similar partnership with PSA Peugeot Citroën in July two thousand five to manufacture an SUV on their behalf. [22]

Mitsubishi reported its very first profitable quarter in four years in the third quarter of 2006, [60] and returned to profitability by the end of the two thousand six financial year, and sustained profitability and global sales of 1,524,000 through two thousand seven and later. [61] [62]

In January 2011, the company announced its next mid-term business plan to introduce eight hybrid and battery-powered models by 2015. It aimed to sell its very first two plug-in hybrids by fiscal 2012. [63]

In May two thousand sixteen Nissan announced a controlling purchase of Mitsubishi Motors for an estimated two billion U.S. dollars. Nissan stated that there are no major switches planned for Mitsubishi Motors and sharing of technologies and platforms can be expected inbetween the two automobile manufactures.

In two thousand fourteen Tetsuro Aikawa was appointed as the president of the company, becoming the very first in more than a decade to have spent an entire career at the company. The career of Aikawa had been mainly in product development albeit he was involved in manufacturing and Japan domestic sales lately. Osamu Masuko, the previous president, joined the company from Mitsubishi Corp. in 2004. MMC suffered eight presidents inbetween one thousand nine hundred eighty nine and 2004. [64]

Mitsubishi Motors embarked selling its i MiEV, the all-electric mini-car with a lithium-ion battery pack tucked under its floor, to retail customers in the summer 2009, a year ahead of schedule. The automaker had primarily planned to begin leasing the minicar-based vehicle to businesses and municipalities in the summer two thousand nine and to wait until two thousand ten for the retail launch. [65] It has also announced its plans to suggest five other e-drive vehicles. [66]

Mitsubishi Motors aims to cut the price of its electrified vehicles to two million yen ($21,890) by fiscal 2012—down thirty percent. [67]

Mitsubishi has almost half a century of international motorsport practice, predating even the incorporation of MMC. Beginning with street races in the early 1960s, the company found itself gravitating towards the challenge of off-road racing. It predominated stamina rallies in the 1970s, the Dakar Rally from the ’80s, and the Group A and Group N classes of the World Rally Championship through the 1990s. Ralliart (later Mitsubishi Motors Motor Sports), was Mitsubishi’s racing subsidiary, albeit the company ceased challenging formally in 2010. [68]

Circuit racing Edit

Mitsubishi’s motorsport debut was in touring car racing in 1962, when it entered its Mitsubishi five hundred Super DeLuxe in the Macau Grand Prix in an effort to promote sales of its very first post-war passenger car. In an auspicious debut, the diminutive rear-engined sedan swept the top four places in the “Under seven hundred fifty cc” category, with Kazuo Togawa taking class honours. [Sixty-nine] The company returned the following year with their fresh Colt six hundred and again swept the podium with a 1–2–3 in the “Under six hundred cc” class. [70] In its final year of competition with touring cars in 1966, Mitsubishi scored a podium clean sweep in the “750–1000 cc” class of the one thousand nine hundred sixty four Japanese Grand Prix with the Colt 1000, their very first front-engined competition vehicle. [71]

The company began concentrating on the Japanese GP’s emerging open-wheel “formula car” categories from 1966, winning the “Exhibition” class. They also scored class 1–2 in one thousand nine hundred sixty seven and 1968, and reached the podium in one thousand nine hundred sixty nine and 1970. [72] They finished on a high with an overall 1–2 in the one thousand nine hundred seventy one Japan GP, with the two litre DOHC F2000 driven by Kuniomi Nagamatsu. [73]

Off-road racing Edit

The East African Safari Rally was by far the most gruelling event on the World Rally Championship calendar in the 1970s. MMC developed the Lancer one thousand six hundred GSR specifically for the marathon race, and won at the very first attempt in 1974. Their highpoint was a clean sweep of the podium places in one thousand nine hundred seventy six in an event where only twenty percent of the starters typically reached the finish. They also achieved a 1–2–3–4 in the one thousand nine hundred seventy three Southern Cross Rally, the very first of four consecutive victories in this event with drivers Andrew Cowan and Kenjiro Shinozuka. [74]

During the 1980s Mitsubishi continued to participate in the WRC, very first with the Lancer EX2000 Turbo and the Starion. It then scored its very first outright Group A victories with a Galant VR-4 in the late ’80s, Mitsubishi homologated the Lancer Evolution, and in the palms of Finland’s Tommi Mäkinen, winner of the drivers’ title for four consecutive years (1996–1999), they won the manufacturers’ championship in 1998. They have won thirty four WRC events since 1973. [75] The Lancer Evo has also predominated the FIA championship for showroom-ready cars, winning seven consecutive Group N titles with four different drivers from 1995–2001. Even in two thousand two when it ostensibly lost the title, the class-winning manufacturer was Proton using a Lancer Evo-based Pert. [76]

Mitsubishi is also the most successful manufacturer in the history of the Dakar Rally, one of the most challenging and dangerous motorsport events in the world. MMC’s maiden entry was in one thousand nine hundred eighty three with their fresh Pajero, and it took only three attempts to find a winning formula. Since then, they have won in 1992, 1993, 1997, 1998, and inbetween two thousand one and 2007, an unprecedented seven consecutive victories and twelfth overall with nine different drivers. [77] They also won the two thousand three FIA Cross-Country Rally World Cup, along with Carlos Sousa.

Mitsubishi has had a 30-year-long association with actor Jackie Chan, who has used their vehicles almost exclusively in his movies via his career. [78] [79] [80] The Jackie Chan Cup, very first held in 1984, [81] is an annual celebrity auto race involving international motor journalists and starlets from across Asia in Mitsubishis with professional touring car drivers alongside for assistance, and was held before the Macau GP until two thousand four when it moved to Shanghai. [82] In September two thousand five Ralliart, Mitsubishi’s motorsport arm, produced fifty Jackie Chan Special Edition versions of the Lancer Evo IX; Chan acts as the honorary director of Team Ralliart China. [83] [84]

The company has vehicle manufacturing facilities in Japan, Philippines, and Thailand, and twelve plants co-owned in partnership with others. [7] [85] In Brazil, it has a production agreement with a local group with no direct investment from MMC. [86] It also has three further engine and transmission manufacturing plants, five R&D centres and seventy five subsidiaries, affiliates and fucking partners. Its vehicles are manufactured, assembled or sold in more than one hundred sixty countries worldwide. [7]

Research, design and administration Edit

• Minato, Tokyo: Head Office and Tokyo Design Studio
• Okazaki, Aichi: Car Research & Development Center
• Uzumasa, Ukyō, Kyoto: Car Research and Development Center
• Hokkaidō: Car Research & Development Center, Tokachi Proving Ground
• Mitsubishi Auto Gallery (三菱オートギャラリー), 1, Nakashinkiri, Okazaki [87]

• Trebur, Hessen, Germany: Mitsubishi Motor R&D of Europe GmbH (MRDE)
• Ann Arbor, Michigan, United States: Mitsubishi Motors R&D of America, Inc. (MRDA) Head Office
• Cypress, California, United States: Mitsubishi Motors R&D of America, Inc. (MRDA) Research and Design Center

Mitsubishi Motors

Mitsubishi Motors

Mitsubishi Motors Corporation (Japanese: 三菱自動車工業株式会社 , Hepburn: Mitsubishi Jidōsha Kōgyō KK, IPA: [mʲitsɯꜜbʲiɕi̥] [6] ) is a Japanese multinational automotive manufacturer headquartered in Minato, Tokyo, Japan. [7] In 2011, Mitsubishi Motors was the sixth thickest Japanese automaker and the sixteenth fattest worldwide by production. [8] From October two thousand sixteen onwards, Mitsubishi is one-third (34%) wielded by Nissan, and thus a part of the Renault-Nissan Alliance. [1]

• Transportation:

Besides being part of the Renault-Nissan Alliance, it is also a part of Mitsubishi keiretsu, formerly the fattest industrial group in Japan, through the corporation’s minority 20% stake in Mitsubishi Motors, and the company was originally formed in one thousand nine hundred seventy from the automotive division of Mitsubishi Intense Industries. [9]

Mitsubishi Fuso Truck and Bus Corporation was formerly a part of Mitsubishi Motors, but is now separate from Mitsubishi Motors, which builds commercial grade trucks, buses and intense construction equipment, and is possessed by Daimler AG (however Mitsubishi proceeds to own a petite stake).

Contents

Mitsubishi’s automotive origins date back to 1917, when the Mitsubishi Shipbuilding Co., Ltd. introduced the Mitsubishi Model A, Japan’s very first series-production automobile. [Ten] An entirely hand-built seven-seater sedan based on the Fiat Tipo Trio, it proved expensive compared to its American and European mass-produced rivals, and was discontinued in one thousand nine hundred twenty one after only twenty two had been built. [11]

In 1934, Mitsubishi Shipbuilding was merged with the Mitsubishi Aircraft Co., a company established in one thousand nine hundred twenty to manufacture aircraft engines and other parts. The unified company was known as Mitsubishi Strenuous Industries (MHI), and was the largest private company in Japan. [12] MHI concentrated on manufacturing aircraft, ships, railroad cars and machinery, but in one thousand nine hundred thirty seven developed the PX33, a prototype sedan for military use. It was the very first Japanese-built passenger car with full-time four-wheel drive, a technology the company would comeback to almost fifty years later in its quest for motorsport and sales success. [13]

Post-war era Edit

Instantaneously following the end of the 2nd World War, the company returned to manufacturing vehicles. Fuso bus production resumed, while a puny three-wheeled cargo vehicle called the Mizushima and a scooter called the Silver Pigeon were also developed. However, the zaibatsu (Japan’s family-controlled industrial conglomerates) were ordered to be dismantled by the Allied powers in 1950, and Mitsubishi Strenuous Industries was split into three regional companies, each with an involvement in motor vehicle development: West Japan Heavy-Industries, Central Japan Heavy-Industries, and East Japan Heavy-Industries.

East Japan Heavy-Industries began importing the Henry J, an inexpensive American sedan built by Kaiser Motors, in knockdown kit (CKD) form in 1951, and continued to bring them to Japan for the remainder of the car’s three-year production run. The same year, Central Japan Heavy-Industries concluded a similar contract with Willys (now possessed by Kaiser) for CKD-assembled Jeep CJ-3Bs. This deal proved more durable, with licensed Mitsubishi Jeeps in production until 1998, thirty years after Willys themselves had substituted the model.

By the beginning of the 1960s Japan’s economy was gearing up; wages were rising and the idea of family motoring was taking off. Central Japan Heavy-Industries, now known as Shin Mitsubishi Heavy-Industries, had already re-established an automotive department in its headquarters in 1953. Now it was ready to introduce the Mitsubishi 500, a mass market sedan, to meet the fresh request from consumers. It followed this in one thousand nine hundred sixty two with the Minica kei car and the Colt 1000, the very first of its Colt line of family cars, in 1963. In 1964, Mitsubishi introduced its largest passenger sedan, the Mitsubishi Debonair as a luxury car primarily for the Japanese market, and was used by senior Mitsubishi executives as a company car.

West Japan Heavy-Industries (now renamed Mitsubishi Shipbuilding & Engineering) and East Japan Heavy-Industries (now Mitsubishi Nihon Heavy-Industries) had also expanded their automotive departments in the 1950s, and the three were re-integrated as Mitsubishi Intense Industries in 1964. Within three years its output was over 75,000 vehicles annually. Following the successful introduction of the very first Galant in one thousand nine hundred sixty nine and similar growth with its commercial vehicle division, it was determined that the company should create a single operation to concentrate on the automotive industry. Mitsubishi Motors Corporation (MMC) was formed on April 22, one thousand nine hundred seventy as a wholly wielded subsidiary of MHI under the leadership of Tomio Kubo, a successful engineer from the aircraft division. [ citation needed ]

The logo of three crimson diamonds, collective with over forty other companies within the keiretsu, predates Mitsubishi Motors itself by almost a century. It was chosen by Iwasaki Yatarō, the founder of Mitsubishi, as it was suggestive of the emblem of the Tosa Clan who very first employed him, and because his own family crest was three rhombuses stacked atop each other. The name Mitsubishi ( 三菱 ) consists of two parts: “mitsu” meaning “three” and “hishi” (which becomes “bishi” under rendaku) meaning “water caltrop” (also called “water chestnut”), and hence “rhombus”, which is reflected in the company’s logo.. [14]

1970s Edit

Part of Mr. Kubo’s expansion strategy was to increase exports by forging alliances with well-established foreign companies. Therefore, in one thousand nine hundred seventy one MHI sold U.S. automotive giant Chrysler a fifteen percent share in the fresh company. Thanks to this deal, Chrysler began selling the Galant in the United States as the Dodge Colt (which was the very first rebadged Mitsubishi product sold by Chrysler), pushing MMC’s annual production beyond 250,000 vehicles. In 1977, the Galant was sold as the Chrysler Sigma in Australia.

By 1977, a network of “Colt”-branded distribution and sales dealerships had been established across Europe, as Mitsubishi sought to begin selling vehicles directly. Annual production had by now grown from 500,000 vehicles in one thousand nine hundred seventy three to 965,000 in 1978, when Chrysler began selling the Galant as the Dodge Challenger and the Plymouth Sapporo. However, this expansion was beginning to cause friction; Chrysler eyed their overseas markets for subcompacts as being directly encroached by their Japanese playmates, while MMC felt the Americans were requiring too much say in their corporate decisions.

1980s Edit

Mitsubishi eventually achieved annual production of one million cars in 1980, but by this time its ally was not so healthy; As part of its battle to avoid bankruptcy, Chrysler was coerced to sell its Australian manufacturing division to MMC that year. The fresh Japanese owners renamed it Mitsubishi Motors Australia Ltd (MMAL).

In 1982, the Mitsubishi brand was introduced to the American market for the very first time. The Tredia sedan, and the Cordia and Starion coupés, were originally sold through seventy dealers in twenty two states, with an allocation of 30,000 vehicles inbetween them. This quota, restricted by mutual agreement inbetween the two countries’ governments, had to be included among the 120,000 cars earmarked for Chrysler. Toward the end of the 1980s, as MMC initiated a major shove to increase its U.S. presence, it aired its very first national television advertising campaign, and made plans to increase its dealer network to three hundred forty dealers.

In one thousand nine hundred eighty six Mitsubishi reached an agreement with Liuzhou Automotive to assemble their Minicab kei van and truck there, making Mitsubishi the third Japanese manufacturer (after Daihatsu and Suzuki) to begin assembly in China. Before receiving government approval for this project, Mitsubishi had had to express contrition over “defective” Mitsubishi trucks imported to China in one thousand nine hundred eighty four and 1985. [15] By 1989, Mitsubishi’s worldwide production, including its overseas affiliates, had reached 1.Five million units.

Diamond-Star Motors Edit

Despite the ongoing tensions inbetween Chrysler and Mitsubishi, they agreed to unite in a vehicle manufacturing operation in Normal, Illinois. The 50/50 venture provided a way to circumvent the voluntary import limitations, while providing a fresh line of compact and subcompact cars for Chrysler. Diamond-Star Motors (DSM)—from the parent companies’ logos: three diamonds (Mitsubishi) and a pentastarlet (Chrysler)—was incorporated in October 1985, and in April one thousand nine hundred eighty six ground was cracked on a 1.9 million square-foot (177,000 m²) production facility. In 1987, the company was selling 67,000 cars a year in the U.S., but when the plant was finished in March one thousand nine hundred eighty eight it suggested an annual capacity of 240,000 vehicles. Originally, three platform-sharing compact Two+Two coupés were released, the Mitsubishi Eclipse, Eagle Talon and Plymouth Laser, with other models being introduced in subsequent years.

1988 IPO Edit

Mitsubishi Motors went public in 1988, ending its status as the only one of Japan’s eleven auto manufacturers to be privately held. Mitsubishi Mighty Industries agreed to reduce its share to twenty five percent, retaining its position as largest single stockholder. Chrysler, meantime, enlargened its holding to over twenty percent. The capital raised by this initial suggesting enabled Mitsubishi to pay off part of its debts, as well as to expand its investments across south-east Asia where it was by now operating in the Philippines, Malaysia, and Thailand.

1990s Edit

Hirokazu Nakamura became president of Mitsubishi in one thousand nine hundred eighty nine and steered the company in some promising directions, with the advent of the Japanese asset price bubble “market correction” that led to the Lost Decade as a result of the Plaza Accord agreement signed in 1985. Sales of the company’s fresh Pajero were bucking conventional wisdom by becoming popular even in the crowded streets of Japan.

It was strongly rumored by Japanese media, in one thousand nine hundred ninety two and 1993, that Mitsubishi Motors intended a hostile acquisition of Honda. While Mitsubishi was railing high off of profitable vehicles such as the Diamante and Pajero, Honda was caught off-guard with the SUV and truck boom and was losing concentrate after the illness and later death of its founder. However, Honda CEO Nobuhiko Kawamoto took drastic steps, such as exiting Formula one and discontinuing unprofitable vehicles to avert a Mitsubishi takeover, which proved effective. [16]

Albeit sales of SUVs and light trucks were thriving in the U.S., Japan’s car manufacturers dismissed the idea that such a trend could occur in their own country. Nakamura, however, enhanced the budget for sport utility product development, and his gamble paid off; Mitsubishi’s broad line of four-wheel drive vehicles, from the Mitsubishi Pajero Mini kei car to the Delica Space Gear passenger van, railed the wave of SUV-buying in Japan in the early to mid-1990s, and Mitsubishi spotted its overall domestic share rise to 11.6 percent in 1995.

Independence Edit

In 1991, Chrysler sold its equity stake in Diamond-Star Motors to its playmate, and from then on they continued to share components and manufacturing on a contractual basis only. Chrysler decreased its interest in Mitsubishi Motors to less than three percent in 1992, and announced its decision to divest itself of all its remaining shares on the open market in 1993. The two companies then terminated their close alliance with Chrysler. With DMS, and Mitsubishi no longer supplying parts for engines and transmissions for Chrysler.

Volvo Edit

Mitsubishi participated in a joint venture with rival car-maker Volvo and the Dutch government at the former DAF plant in Born in 1991. The operation, branded NedCar, began producing the very first generation Mitsubishi Carisma alongside the Volvo S40/V40 in 1996. The factory later produced the latest Mitsubishi Colt and the related Brainy Forfour (fucking partner DaimlerChrysler cancelled its production in 2006). Production of European market-bound Mitsubishi Outlanders, and badge engineered versions of this vehicle, were also manufactured in the Netherlands until 2012, when the company sold the plant to the Dutch coach manufacturer VDL Groep. [17] [Eighteen] [Nineteen]

Upon selling its Volvo Cars division to Ford in January 1999, Volvo Group purchased a 5% stake in Mitsubishi Motors in November of that same year, but sold its stake to shareholder DaimlerChrysler in March 2001. [20]

PSA Peugeot Citroën Edit

Mitsubishi has been allied with PSA Peugeot Citroën since 1999, after they agreed to co-operate on the development of diesel engines using the Japanese company’s gasoline direct injection (GDI) technology. [21] They united again in two thousand five to develop the Peugeot four thousand seven and Citroën C-Crosser sport utility vehicles (SUVs), based on the Japanese company’s Mitsubishi Outlander. [22]

Two further ties were established inbetween the companies in 2008, very first with the establishment of a jointly possessed production facility in Kaluga which will manufacture up to 160,000 Outlander-based SUVs for the fast-growing Russian market. [23] They are also collaborating in the research and development of electrified powertrains for puny urban vehicles. [24] Japanese newspaper Nikkei claims that Peugeot Citroën will sell the electrical city car Mitsubishi i MiEV in Europe by 2011. [25]

Volkswagen Edit

In Europe, Mitsubishi Motors used diesel engines supplied by the German manufacturer Volkswagen for some of its mid-sized cars, [26] such as the Lancer, [27] Grandis, [28] and Outlander. [29] From 2010, they were superseded with Mitsubishi’s own developed 4N1 diesel engine.

Colt and Lonsdale Edit

The Colt name emerges frequently in Mitsubishi’s history since its introduction as a rear-engined 600cc sedan in the early 1960s. Today, it most commonly refers to the Mitsubishi Colt subcompact in the company’s line-up, but is also the name of MMC’s import/distribution company in the United Kingdom, the Colt Car Company, established in 1974. For the very first decade of its existence, before Far Eastern auto manufacturers had established their reputations, its cars carried the “Colt” badge in Britain instead of “Mitsubishi”.

In one thousand nine hundred eighty two and 1983, Mitsubishi introduced the Australian-built Mitsubishi Sigma to the UK as the Lonsdale Sigma in an attempt to circumvent British import quotas, but the fresh brand was unsuccessful. It then carried Mitsubishi Sigma badges in 1983–84 before abandoning this operation entirely.

Proton Edit

Malaysian manufacturer Proton was primarily very dependent on Mitsubishi Motors, only assembling their one thousand nine hundred eighty five Proton Saga using MMC components at a freshly established facility in Shah Alam. Subsequent models like the Wira and Perdana were based on the Lancer/Colt and Galant/Eterna respectively, before the company eventually produced entirely self-developed vehicles, the Waja in 2001, and the Proton Gen-2 in 2004. At its peak, the car maker managed seventy five percent of its domestic market, even after Mitsubishi ended their 22-year partnership in 2005, selling their 7.9 percent stake for RM384 million [30] to Khazanah Nasional Berhad. However, in October 2008, Proton renewed its technology transfer agreements with MMC, and the Proton Inspira (the Proton Waja replacement) is to be based on the Mitsubishi Lancer platform and official launched on ten November 2010. [ needs update ]

Hyundai Edit

South Korean manufacturer Hyundai, built the Hyundai Pony in one thousand nine hundred seventy five using MMC’s Saturn engine and transmissions. Korea’s very first car, it remained in production for thirteen years. Mitsubishi held up to a ten percent stake in the company, until disposing of the last of its remaining shares in March 2003.

The one thousand nine hundred eighty five Hyundai Excel was sold in the United States as the Mitsubishi Precis inbetween one thousand nine hundred eighty seven and 1994, whereas several other Mitsubishi models were rebadged as Hyundai, namely the Mitsubishi Chariot (as the Hyundai Santamo), the Mitsubishi Pajero (as the Hyundai Galloper) or the Mitsubishi Delica (as the Hyundai Porter).

Hindustan Edit

Indian manufacturer Hindustan had a joint venture with Mitsubishi that began 1998. The plant is located in Thiruvallur, Tamil Nadu.

Models produced include: Mitsubishi Pajero Sport ((Third generation)) until 2016.

Samcor Edit

The South African Motor Corporation (Samcor) was a joint venture created in 1985, which produced Ford, Mazda and Mitsubishi vehicles for the local South African market, with the Mitsubishi Delica being rebadged as the Ford Husky and the Mitsubishi Canter as the Ford Triton. [31] [32]

Nissan Edit

In May 2016, in the wake of the emissions scandal, Nissan set the acquisition of a 34% stake in Mitsubishi Motors, with the aim of making Nissan the largest and controlling shareholder of Mitsubishi and turning Mitsubishi into a member of the Renault-Nissan Alliance. Nissan has said that they plan to share some car platforms and jointly develop future vehicles with Mitsubishi Motors. [33] The Nissan acquisition was ended in October 2016. [1]

Chinese joint ventures Edit

As of two thousand six Mitsubishi has four joint ventures with Chinese playmates. [34]

Japan Sales Channels Edit

Mitsubishi Motors maintained two retail sales channels that sold specific models, called “Car Plaza” and “Galant Shop”. Certain models were sensational to either channel, while some models were available at both channels, as required by local Japanese market conditions. More recently, due to cancellation of larger sedans, the sales channels have been combined into one franchise that sell all models, including kei cars and commercial delivery vehicles.

Asian economic downturn Edit

The benefits Mitsubishi had seen because of its strong presence in south-east Asia reversed themselves as a result of the economic crisis in the region which began in one thousand nine hundred ninety one with the advent of the collapse of the Japanese asset price bubble, referred to in Japan as the beginning of the Lost Decade and continued to 1997. The collapse was partly the result of the Plaza Accord agreement in 1985, which sought to equalize the United States dollar with the Japanese yen and the German mark. In September of that year the company closed its Thai factory in response to a crash in the country’s currency and plummeting consumer request. The large truck plant, which had produced 8,700 trucks in 1996, was shut down indefinitely. In addition, Mitsubishi had little support from sales in Japan, which slowed considerably across one thousand nine hundred ninety seven and were affected by that country’s own economic uncertainty into 1998. Other Japanese automakers, such as Toyota and Honda, bolstered their own slipping domestic sales with success in the U.S. However, with a comparatively puny percentage of the American market, the influence of the turmoil in the Asian economy had a greater effect on Mitsubishi, and the company’s one thousand nine hundred ninety seven losses were the worst in its history. In addition, it lost both its rank as the third largest automaker in Japan to Mazda, and market share overseas. Its stock price fell precipitously, prompting the company to cancel its year-end dividend payment. [35]

In November 1997, Mitsubishi hired Katsuhiko Kawasoe to substitute Takemune Kimura as company president. Kawasoe unveiled an aggressive restructuring program that aimed to cut costs by ¥350 billion in three years, reduce personnel by 1,400, and come back the company to profitability by 1998. But while the program had some initial success, the company’s sales were still stagnant as the Asian economy continued to sputter. In 1999, Mitsubishi was coerced once again to skip dividend payments. Its interest-bearing debt totalled ¥1.7 trillion.

Vehicle defect cover-up Edit

In what was referred to as “one of the largest corporate scandals in Japanese history”, [36] [37] Mitsubishi was twice coerced to admit to systematically covering up defect problems in its vehicles. Four defects were very first publicised in 2000, but in two thousand four it confessed to twenty six more going back as far as 1977, including failing brakes, fuel leaks and malfunctioning clutches. The effect on the company was catastrophic, forcing it to recall 163,707 cars (156,433 in Japan and 7,274 overseas) for free repair. [38] Further recalls by Fuso truck & bus brought the total number of vehicles requiring repair to almost one million. The affair led to the resignation and subsequent arrest of president Kawasoe, along with twenty three other employees who were also implicated. [39] Three of them have since been acquitted, with the judge stating that there was no official request from the Transport Ministry ordering them to submit a defect report. [40]

0–0–0 Edit

In an effort to boost sales in the U.S. in the early 2000s, Mitsubishi began suggesting a “0–0–0” finance offer—0% down, 0% interest, and $0 monthly payments (all repayments deferred for twelve months). Primarily, sales leapt, but at the end of the year’s “grace period” numerous credit-risky buyers defaulted, leaving Mitsubishi with used vehicles for which they had received no money and which were now worth less than they cost to manufacture. The company’s American credit operation, MMCA, was eventually compelled to make a US$454 million provision against its two thousand three accounts as a result of these losses. [41] As a result, sales plummeted to 243,000 in 2003, 139,000 in 2004, 124,000 in 2005, and 119,000 in 2006. [42]

End of Australian production Edit

In October 2005, MMAL introduced the Mitsubishi three hundred eighty to the Australian market as the replacement for its long-running Mitsubishi Magna, and the foot vehicle being built at its Australian assembly plant at Clovelly Park. Despite an investment of A$600 million developing the car, initial sales projections proved optimistic; after only six months Mitsubishi scaled back production from 90/day, and diminished the working week from five days to four. [43] It remained an ongoing concern in the Australian auto industry as to whether this would be sufficient to restore the plant to profitability and ensure its long-term survival.

The drop in local sales could not be mitigated by exports outside of the Australian and Fresh Zealand market. On February Five, two thousand eight Mitsubishi Motors Australia announced it would be closing down its Adelaide assembly plant by the end of March. Inbetween seven hundred and one thousand direct jobs would be lost and up to two thousand jobs will be lost in industries supporting Mitsubishi’s local manufacturing operations. [44]

End of European production Edit

With operating losses ¥22 billion ($287 million) in Europe for the fiscal year to March due to stagnant sales in a continent beset by uncertainty of a furious debt crisis, eventually in February two thousand twelve Mitsubishi have determined to withdraw production in Europe by the end of 2012. On October one it was announced that the Dutch industrial conglomerate VDL Groep had taken over NedCar from Mitsubishi, retaining all 1,500 employees. [45]

End of North American production Edit

In 1988, Mitsubishi opened a production facility in the United States in Normal, Illinois. The facility was known as Diamond-Star Motors and was primarily a joint venture with Chrysler, however Chrysler sold its stake in the plant to Mitsubishi in 1993. After one thousand nine hundred ninety five the facility was known as Mitsubishi Motors Manufacturing America (MMMA). At its peak in 2000, the facility produced over 222,000 vehicles per year, however following the decline of Mitsubishi in North America, the plant operated well below capacity for years.

Eventually, in July 2015, Mitsubishi announced that it would close the plant by November, but would proceed to sell automobiles in North America. In 2014, the plant had produced just Sixty nine,000 vehicles, toughly one-quarter of its capacity. [46] Production at the plant ended on thirty November 2015, and most of the employees were laid off. The plant continued to operate with a minimal staff to produce replacement parts until May 2016, after which it closed permanently. [47]

Fuel mileage scandal Edit

In early 2016, Mitsubishi playmate Nissan found discrepancies inbetween Mistubishi information and actual fuel consumption while working in fresh micro cars for both companies, the eK Wagon, eK Space, Nissan Dayz and Nissan Dayz Roox. Mitsubishi manufactures micro cars for Nissan, which no longer makes that class of vehicle itself. Mitsubishi admitted that they had been providing wrong information on fuel consumption from two thousand two onwards, using inaccurate test methods. [48] Later, the company said it used fuel economy testing methods that did not conform with Japanese regulations for twenty five years, much longer than previously known. [49] Mitsubishi management said they did not know about the issue and that the wrong information came from the micro car development department. They ordered an investigation led by investigators not affiliated with the company. [50] The resultant scandal culminated in Nissan acquiring a controlling interest in MMC in May 2016. [51] Nissan agreed to invest 237.Four billion yen ($Two.Two billion US) in exchange for receiving a 34% ownership stake in Mitsubishi Motors. Due to dilution of existing shares, other Mitsubishi group companies (Mitsubishi Intense Industries, Mitsubishi Corp., and Bank of Tokyo-Mitsubishi UFJ) will see their combined holdings in Mitsubishi Motors fall to about 20% from 34% presently. [52]

Mitsubishi Motors North America stated that vehicles sold from two thousand thirteen in the United States featured accurate fuel economy information and were thereby not affected by the scandal. [53]

In May 2016, Mitsubishi Motors announced Tetsuro Aikawa to resign as the president of the company in effect on June. Both Mitsubishi Motors and Aikawa denied any top management involvement in the mileage scandal. The company said much of the mileage-testing work was assigned to a subsidiary and there was a lack of scrutiny of such work. [54]

After a starvation of fresh investment caused by lack of cashflow, the company introduced the award-winning Mitsubishi i kei car in 2006, its very first fresh model in twenty nine months, while a revised Outlander has been introduced worldwide to rival in the popular XUV market niche. [55] The next generation of its Lancer and Lancer Evolution was launched in two thousand seven and 2008. [56]

Slow selling vehicles were eliminated from the U.S. market, purchase projections for the Global Engine Manufacturing Alliance have been scaled back, and Ten,000 jobs have been shed to cut costs with Trio,400 workers at its Australian plant and other loss-making operations still under threat. Meantime, in an effort to increase production at its U.S. facility, [57] fresh export markets for the Eclipse and Galant are being explored in Ukraine, the Middle East, and Russia, where the company’s bestselling dealership is located. [58] Mitsubishi has also been active in OEM production of cars for Nissan, [59] and announced a similar partnership with PSA Peugeot Citroën in July two thousand five to manufacture an SUV on their behalf. [22]

Mitsubishi reported its very first profitable quarter in four years in the third quarter of 2006, [60] and returned to profitability by the end of the two thousand six financial year, and sustained profitability and global sales of 1,524,000 through two thousand seven and later. [61] [62]

In January 2011, the company announced its next mid-term business plan to introduce eight hybrid and battery-powered models by 2015. It aimed to sell its very first two plug-in hybrids by fiscal 2012. [63]

In May two thousand sixteen Nissan announced a controlling purchase of Mitsubishi Motors for an estimated two billion U.S. dollars. Nissan stated that there are no major switches planned for Mitsubishi Motors and sharing of technologies and platforms can be expected inbetween the two automobile manufactures.

In two thousand fourteen Tetsuro Aikawa was appointed as the president of the company, becoming the very first in more than a decade to have spent an entire career at the company. The career of Aikawa had been mainly in product development albeit he was involved in manufacturing and Japan domestic sales lately. Osamu Masuko, the previous president, joined the company from Mitsubishi Corp. in 2004. MMC suffered eight presidents inbetween one thousand nine hundred eighty nine and 2004. [64]

Mitsubishi Motors commenced selling its i MiEV, the all-electric mini-car with a lithium-ion battery pack tucked under its floor, to retail customers in the summer 2009, a year ahead of schedule. The automaker had primarily planned to commence leasing the minicar-based vehicle to businesses and municipalities in the summer two thousand nine and to wait until two thousand ten for the retail launch. [65] It has also announced its plans to suggest five other e-drive vehicles. [66]

Mitsubishi Motors aims to cut the price of its electrified vehicles to two million yen ($21,890) by fiscal 2012—down thirty percent. [67]

Mitsubishi has almost half a century of international motorsport practice, predating even the incorporation of MMC. Beginning with street races in the early 1960s, the company found itself gravitating towards the challenge of off-road racing. It predominated stamina rallies in the 1970s, the Dakar Rally from the ’80s, and the Group A and Group N classes of the World Rally Championship through the 1990s. Ralliart (later Mitsubishi Motors Motor Sports), was Mitsubishi’s racing subsidiary, albeit the company ceased challenging formally in 2010. [68]

Circuit racing Edit

Mitsubishi’s motorsport debut was in touring car racing in 1962, when it entered its Mitsubishi five hundred Super DeLuxe in the Macau Grand Prix in an effort to promote sales of its very first post-war passenger car. In an auspicious debut, the diminutive rear-engined sedan swept the top four places in the “Under seven hundred fifty cc” category, with Kazuo Togawa taking class honours. [Sixty nine] The company returned the following year with their fresh Colt six hundred and again swept the podium with a 1–2–3 in the “Under six hundred cc” class. [70] In its final year of competition with touring cars in 1966, Mitsubishi scored a podium clean sweep in the “750–1000 cc” class of the one thousand nine hundred sixty four Japanese Grand Prix with the Colt 1000, their very first front-engined competition vehicle. [71]

The company began concentrating on the Japanese GP’s emerging open-wheel “formula car” categories from 1966, winning the “Exhibition” class. They also scored class 1–2 in one thousand nine hundred sixty seven and 1968, and reached the podium in one thousand nine hundred sixty nine and 1970. [72] They finished on a high with an overall 1–2 in the one thousand nine hundred seventy one Japan GP, with the two litre DOHC F2000 driven by Kuniomi Nagamatsu. [73]

Off-road racing Edit

The East African Safari Rally was by far the most gruelling event on the World Rally Championship calendar in the 1970s. MMC developed the Lancer one thousand six hundred GSR specifically for the marathon race, and won at the very first attempt in 1974. Their highpoint was a clean sweep of the podium places in one thousand nine hundred seventy six in an event where only twenty percent of the starters typically reached the finish. They also achieved a 1–2–3–4 in the one thousand nine hundred seventy three Southern Cross Rally, the very first of four consecutive victories in this event with drivers Andrew Cowan and Kenjiro Shinozuka. [74]

During the 1980s Mitsubishi continued to participate in the WRC, very first with the Lancer EX2000 Turbo and the Starion. It then scored its very first outright Group A victories with a Galant VR-4 in the late ’80s, Mitsubishi homologated the Lancer Evolution, and in the forearms of Finland’s Tommi Mäkinen, winner of the drivers’ title for four consecutive years (1996–1999), they won the manufacturers’ championship in 1998. They have won thirty four WRC events since 1973. [75] The Lancer Evo has also predominated the FIA championship for showroom-ready cars, winning seven consecutive Group N titles with four different drivers from 1995–2001. Even in two thousand two when it ostensibly lost the title, the class-winning manufacturer was Proton using a Lancer Evo-based Pert. [76]

Mitsubishi is also the most successful manufacturer in the history of the Dakar Rally, one of the most challenging and dangerous motorsport events in the world. MMC’s maiden entry was in one thousand nine hundred eighty three with their fresh Pajero, and it took only three attempts to find a winning formula. Since then, they have won in 1992, 1993, 1997, 1998, and inbetween two thousand one and 2007, an unprecedented seven consecutive victories and twelfth overall with nine different drivers. [77] They also won the two thousand three FIA Cross-Country Rally World Cup, along with Carlos Sousa.

Mitsubishi has had a 30-year-long association with actor Jackie Chan, who has used their vehicles almost exclusively in his movies via his career. [78] [79] [80] The Jackie Chan Cup, very first held in 1984, [81] is an annual celebrity auto race involving international motor journalists and starlets from across Asia in Mitsubishis with professional touring car drivers alongside for assistance, and was held before the Macau GP until two thousand four when it moved to Shanghai. [82] In September two thousand five Ralliart, Mitsubishi’s motorsport arm, produced fifty Jackie Chan Special Edition versions of the Lancer Evo IX; Chan acts as the honorary director of Team Ralliart China. [83] [84]

The company has vehicle manufacturing facilities in Japan, Philippines, and Thailand, and twelve plants co-owned in partnership with others. [7] [85] In Brazil, it has a production agreement with a local group with no direct investment from MMC. [86] It also has three further engine and transmission manufacturing plants, five R&D centres and seventy five subsidiaries, affiliates and fucking partners. Its vehicles are manufactured, assembled or sold in more than one hundred sixty countries worldwide. [7]

Research, design and administration Edit

• Minato, Tokyo: Head Office and Tokyo Design Studio
• Okazaki, Aichi: Car Research & Development Center
• Uzumasa, Ukyō, Kyoto: Car Research and Development Center
• Hokkaidō: Car Research & Development Center, Tokachi Proving Ground
• Mitsubishi Auto Gallery (三菱オートギャラリー), 1, Nakashinkiri, Okazaki [87]

• Trebur, Hessen, Germany: Mitsubishi Motor R&D of Europe GmbH (MRDE)
• Ann Arbor, Michigan, United States: Mitsubishi Motors R&D of America, Inc. (MRDA) Head Office
• Cypress, California, United States: Mitsubishi Motors R&D of America, Inc. (MRDA) Research and Design Center

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