Mitsubishi Motors Corp. has reshuffled its priorities in a bid to boost sales in North America.
A new three-year business plan builds on the brand's traditional strength in SUVs, while extending the focus to crossovers and electrified vehicles. But Mitsubishi will largely tap other automakers for sedans.
President Osamu Masuko, who has led a rebounding Mitsubishi to record profits, aims to overhaul the company's global portfolio by eliminating two of its nine platforms and scaling back its offerings to 13 models from 18.
Under the plan, Mitsubishi aims to increase sales in North America 36 percent from the company's forecast for this fiscal year, ending March 31, 2014, to 150,000 units. Masuko also will pump more money into r&d to develop new products and better battery-powered drivetrains.
Globally, the goal is to lift sales 29 percent to 1.43 million vehicles in the fiscal year ending March 31, 2017, from a projected 1,111,000 units in the current fiscal year.
But in North America, Mitsubishi counts on even faster growth. The strategy:
•Channel resources into crossovers and SUVs.
•Source new sedans from the Renault-Nissan alliance.
•Crank up exports from Mitsubishi's only North American assembly plant.
Mitsubishi's next step Key points in the carmaker's 3-year plan
• Refocus on crossovers, SUVs and electrified vehicles
• Source sedans from Renault-Nissan
• Boost exports from Normal, Ill., plant
• Trim vehicle platforms to 7 from 9
• Reduce number of models to 13 from 18
• Boost North America sales 36% to 150,000 units
• Lift global sales 29% to 1.43 million units
Source: Mitsubishi Motors Corp.
The company will push electrified drivetrains in a bid to make 20 percent of its vehicles either electric or plug-in hybrids by 2020, Masuko said.
Mitsubishi offered sparse details on upcoming U.S. product. But at least one electrified crossover could take a while to hit showrooms, despite the new priorities. The Outlander plug-in hybrid, already on sale in Japan and Europe, could arrive in the United States as late as 2015 because of battery supply bottlenecks, Masuko said.
Mitsubishi aims to plug holes in its sedan offerings, but that timing is unclear.
The company plans to sell in North America a Renault-based mid-sized car made at a Renault-Samsung plant in Busan, South Korea. Masuko said the car is intended to replace the U.S.-built Galant sedan, which was phased out last year.
That new car will be the first of two Renault-based sedans sold by Mitsubishi under a broader product and technology exchange. The cooperation also includes joint development of an electric car and a compact car, both to be sold globally.
The second sedan would be smaller, in the range of today's Mitsubishi Lancer. It is possible Mitsubishi may not redesign the Lancer independently.
The 150,000 North American sales target is still far below historical highs. Mitsubishi's sales in the United States alone peaked at 345,111 units in 2002.
