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Japanese automotive manufacturer

Mitsubishi Motors Corporation

Mitsubishi Motors Headquarters building in Shiba, Minato
Native name	三菱自動車工業株式会社
Romanized name	Mitsubishi Jidōsha Kōgyō KK
Blazon	Public
Traded every bit	TYO: 7211
Industry	Automotive
Predecessor	Mitsubishi Heavy Industries Automobile Division
Founded	22 April 1970; 51 years ago (1970-04-22)
Headquarters	Minato, Tokyo , Nihon
Number of locations	Cypress, California, United States Schiphol-Rijk, Netherlands Santa Rosa, Laguna, Philippines Khlong Luang, Pathum Thani, Thailand Cikarang, Due west Java, Indonesia
Key people	Takao Kato (President & CEO) Tomofumi Hiraku (Chairman)
Products	Passenger cars Economy cars Commercial vehicles Sport utility vehicles
Production output	1,079,346 vehicles (FY2016)^[1]
Revenue	¥two.514 trillion (FY2018)^[2]
Operating income	¥111.815 billion (FY2018)^[ii]
Net income	¥119.850 billion (FY2018)^[2]
Full assets	¥2.010 trillion (FY2018)^[2]
Total equity	¥945.818 billion (FY2018)^[2]
Owners	Nissan Motor Co., Ltd. (34.03%)^[iii] Mitsubishi Heavy Industries (10.77%) Mitsubishi Corporation (9.25%) JTSB investment trusts (2.47%) TMTBJ investment trusts (2.xiii%)
Number of employees	32,171 (As of May xiii, 2021)^[iv]
Subsidiaries	Transportation: NMKV Soueast Hunan Changfeng Motor GAC Mitsubishi Ralliart Engines: Harbin Dongan Automotive Engine Manufacturing Sports: Urawa Red Diamonds Mitsubishi Motors Mizushima International: Mitsubishi Motors Australia Mitsubishi Motors Europe Mitsubishi Motors N America Mitsubishi Motors Krama Yudha Indonesia Mitsubishi Motors Philippines Mitsubishi Motors (Thailand)
Website	www.mitsubishi-motors.com

Mitsubishi Motors Corporation (Japanese: 三菱自動車工業株式会社, Hepburn: Mitsubishi Jidōsha Kōgyō KK , IPA: [mitsɯꜜbiɕi]; commonly known every bit Mitsubishi Motors ^[5]) is a Japanese multinational motorcar manufacturer headquartered in Minato, Tokyo, Japan.^[6] In 2011, Mitsubishi Motors was the 6th-largest Japanese automaker and the 19th-largest worldwide by product.^[7] Since October 2016, Mitsubishi has been one-third (34%) owned past Nissan, thus a function of the Renault–Nissan–Mitsubishi Alliance.^[viii]

Besides beingness office of the Renault–Nissan–Mitsubishi Alliance, it is also a part of Mitsubishi keiretsu, formerly the biggest industrial group in Japan, and the company was originally formed in 1970 from the automotive partitioning of Mitsubishi Heavy Industries.^[9]

Mitsubishi Fuso Truck and Passenger vehicle Corporation, which builds commercial-class trucks, buses, and heavy structure equipment, was formerly a part of Mitsubishi Motors, just is at present separate, and is owned by High german automotive corporation Daimler Truck (though Mitsubishi continues to own a small stake).

History [edit]

Workers at Mitsubishi Shipbuilding Co., Ltd, aslope one of the prototype Mitsubishi Model A automobiles (1917)

Mitsubishi's automotive origins date back to 1917, when the Mitsubishi Shipbuilding Co., Ltd. introduced the Mitsubishi Model A, Japan'southward commencement series-production automobile.^[10] An entirely manus-built seven-seater sedan based on the Fiat Tipo 3, it proved expensive compared to its American and European mass-produced rivals, and was discontinued in 1921 after just 22 had been congenital.^[eleven]

In 1934, Mitsubishi Shipbuilding was merged with the Mitsubishi Aircraft Co., a company established in 1920 to manufacture aircraft engines and other parts. The unified visitor was known as Mitsubishi Heavy Industries (MHI), and was the largest private visitor in Japan.^[12] MHI full-bodied on manufacturing aircraft, ships, railroad cars and machinery, only in 1937 developed the PX33, a image sedan for military employ. Information technology was the first Japanese-built passenger car with full-time four-wheel bulldoze, a technology the company would return to about fifty years subsequently in its quest for motorsport and sales success.^[13]

Post-state of war era [edit]

Logo of Mitsubishi Motors from 1983 to 2017

Immediately following the end of the Second World War, the company returned to manufacturing vehicles. Fuso bus production resumed, while a minor three-wheeled cargo vehicle called the Mizushima and a scooter chosen the Silver Pigeon were besides developed. However, the zaibatsu (Japan's family unit-controlled industrial conglomerates) were ordered to exist dismantled by the Allied powers in 1950, and Mitsubishi Heavy Industries was divide into 3 regional companies, each with an involvement in motor-vehicle development: W Japan Heavy-Industries, Cardinal Japan Heavy-Industries, and E Japan Heavy-Industries.

East Nippon Heavy-Industries began importing the Henry J, an cheap American sedan built by Kaiser Motors, in knockdown kit (CKD) form in 1951, and connected to bring them to Japan for the remainder of the car's three-year production run. The same year, Key Japan Heavy-Industries concluded a like contract with Willys (now owned by Kaiser) for CKD-assembled Jeep CJ-3Bs. This deal proved more durable, with licensed Mitsubishi Jeeps in production until 1998, 30 years after Willys had replaced the model.

Past the showtime of the 1960s, Japan'southward economic system was gearing up; wages were rise and the idea of family unit motoring was taking off. Cardinal Japan Heavy-Industries, at present known every bit 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 new demand from consumers. It followed this in 1962 with the Minica kei car and the Colt 1000, the first of its Colt line of family cars, in 1963. In 1964, Mitsubishi introduced its largest rider sedan, the Mitsubishi Debonair every bit a luxury car primarily for the Japanese market, and was used by senior Mitsubishi executives as a visitor car.

Westward Nihon Heavy-Industries (now renamed Mitsubishi Shipbuilding and Engineering) and East Japan Heavy-Industries (now Mitsubishi Nippon Heavy-Industries) had also expanded their automotive departments in the 1950s, and the three were reintegrated as Mitsubishi Heavy Industries in 1964. Within iii years, its output was over 75,000 vehicles annually. Following the successful introduction of the kickoff Galant in 1969 and like growth with its commercial-vehicle division, the company decided to create a unmarried performance to focus on the automotive industry. Mitsubishi Motors Corporation (MMC) was formed on Apr 22, 1970, as a wholly owned subsidiary of MHI under the leadership of Tomio Kubo, a successful engineer from the aircraft division.^{[ commendation needed ]}

The logo of 3 red diamonds, shared with over xl other companies inside the keiretsu, antedates Mitsubishi Motors itself past nearly a century. It was chosen by Iwasaki Yatarō, the founder of Mitsubishi, as it was suggestive of the emblem of the Tosa clan who first employed him, and because his own family crest was three rhombi stacked atop each other. The name Mitsubishi ( 三菱 ) consists of two parts – mitsu meaning "three" and hishi (which becomes "bishi" nether rendaku) meaning "water caltrop" (also called "h2o chestnut"), and hence "rhombus", which is reflected in the company'due south logo.^[14]

Chrysler connexion [edit]

1970s [edit]

Office of Mr. Kubo's expansion strategy was to increase exports past forging alliances with well-established strange companies. Therefore, in 1971, MHI sold U.South. automotive giant Chrysler a 15% share in the new company. Cheers to this deal, Chrysler began selling the Galant in the United States every bit the Dodge Filly (which was the commencement rebadged Mitsubishi product sold by Chrysler), pushing MMC's annual production beyond 250,000 vehicles. In 1977, the Galant was sold every bit the Chrysler Sigma in Commonwealth of australia.

By 1977, a network of "Colt"-branded distribution and sales dealerships had been established beyond Europe, equally Mitsubishi sought to begin selling vehicles directly. Almanac production had by now grown from 500,000 vehicles in 1973 to 965,000 in 1978, when Chrysler began selling the Galant as the Dodge Challenger and the Plymouth Sapporo. Yet, this expansion was showtime to cause friction; Chrysler saw their overseas markets for subcompacts every bit being directly encroached by their Japanese partners, while MMC felt the Americans were demanding too much say in their corporate decisions.

1980s [edit]

Mitsubishi finally accomplished annual production of a million cars in 1980, but past this time, its marry was not so healthy; as part of its battle to avert defalcation, Chrysler was forced to sell its Australian manufacturing segmentation to MMC that year. The new Japanese owners renamed it Mitsubishi Motors Australia Ltd (MMAL).

In 1982, the Mitsubishi brand was introduced to the American market for the commencement time. The Tredia sedan, and the Cordia and Starion coupés were initially sold through seventy dealers in 22 states, with an allocation of 30,000 vehicles among them. This quota, restricted by common agreement betwixt the two countries' governments, had to be included amongst the 120,000 cars earmarked for Chrysler. A restricting element of Mitsubishi'southward bargain with Chrysler was that Chrysler had the right of start refusal of whatsoever Mitsubishi automobiles in the US market place until 1990.^[15] Toward the terminate of the 1980s, equally MMC initiated a major push button to increment its U.Due south. presence, it aired its starting time national idiot box advertising entrada and made plans to increase its network to 340 dealers.

In 1986 Mitsubishi reached an agreement with Liuzhou Automotive to assemble their Minicab kei van and truck there, making Mitsubishi the tertiary Japanese manufacturer (after Daihatsu and Suzuki) to brainstorm assembly in China. ^{[ citation needed ]} Before receiving government approving for this project, Mitsubishi had to express contrition over "defective" Mitsubishi trucks imported to Communist china in 1984 and 1985.^[16] By 1989, Mitsubishi's worldwide production, including its overseas affiliates, had reached i.5 meg units.

Diamond-Star Motors [edit]

Despite the ongoing tensions between Chrysler and Mitsubishi, they agreed to unite in a vehicle manufacturing functioning in Normal, Illinois. The fifty/fifty venture provided a manner to circumvent the voluntary import restrictions, while providing a new line of meaty and subcompact cars for Chrysler. Diamond-Star Motors (DSM)—from the parent companies' logos: three diamonds (Mitsubishi) and a pentastar (Chrysler)—was incorporated in Oct 1985, and in Apr 1986, ground was broken on a 1.nine-million-square-human foot (177,000 yard²) product facility in Normal. In 1987, the company was selling 67,000 cars a year in the U.S., but when the institute was completed in March 1988, information technology offered an annual capacity of 240,000 vehicles. Initially, three platform-sharing compact two+2 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 ane of Japan's 11 auto manufacturers to be privately held. Mitsubishi Heavy Industries agreed to reduce its share to 25%, retaining its position as largest single stockholder. Chrysler, meanwhile, increased its holding to over 20%. The uppercase raised past this initial offering enabled Mitsubishi to pay off part of its debts, likewise as to expand its investments throughout Southeast Asia, where it was past at present operating in the Philippines, Malaysia, and Thailand.

1990s [edit]

Hirokazu Nakamura became president of Mitsubishi in 1989, and steered the company in some promising directions, with the advent of the Japanese asset price bubble "marketplace correction" that led to the Lost Decade as a result of the Plaza Accord understanding signed in 1985. Sales of the company's new Pajero were bucking conventional wisdom past becoming popular even in the crowded streets of Japan.

Japanese media rumored in 1992 and 1993 that Mitsubishi Motors intended a hostile acquisition of Honda. While Mitsubishi was riding 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 focus subsequently the disease and later death of its founder. Honda CEO Nobuhiko Kawamoto took desperate steps, though, such every bit exiting Formula one and discontinuing unprofitable vehicles to avert a Mitsubishi takeover, which proved effective.^[17]

Although sales of SUVs and low-cal trucks were booming in the U.S., Japan'due south car manufacturers dismissed the idea that such a tendency could occur in their own country. Nakamura, however, increased the budget for SUV product evolution, and his gamble paid off; Mitsubishi's wide line of four-bike drive vehicles, from the Mitsubishi Pajero Mini kei car to the Delica Space Gear passenger van, rode the wave of SUV-buying in Japan in the early on to mid-1990s, and Mitsubishi saw its overall domestic share rise to 11.6% in 1995.

Independence [edit]

In 1991, Chrysler sold its equity stake in Diamond-Star Motors to its partner Mitsubishi, and from then on the 2 companies continued to share components and manufacturing on a contractual basis only. Chrysler decreased its interest in Mitsubishi Motors to less than 3% in 1992, and announced its decision to divest itself of all its remaining shares on the open market place in 1993. The ii companies then terminated their shut alliance, with Mitsubishi no longer supplying parts for engines and transmissions for Chrysler. Afterwards this menstruum, Mitsubishi sought alliances with many other automotive manufacturers in different areas of the world, equally described under "other alliances" below, with its near economically significant alliance being with Nissan to develop and manufacture kei cars.

2000s [edit]

Mitsubishi Heavy Industries (MHI) participated in a ¥540-billion emergency rescue of Mitsubishi Motors in January 2005, in partnership with Mitsubishi Corporation and Mitsubishi Tokyo Fiscal Group.^[18] ^[19] Equally function of the rescue, MHI acquired ¥50 billion of Mitsubishi Motors stock, increasing its ownership stake to xv% and making the automaker an affiliate again. The emergency rescue was carried out four years after a product recall scandal in Japan that was triggered by accusations of Mitsubishi Motors trying to systematically hide manufacturing defects to avoid recalls, and marketing problems in the U.s.a..^[xviii]

Renault-Nissan-Mitsubishi Alliance membership [edit]

In May 2016, in the wake of the fuel-efficiency scandal uncovered by Nissan (discussed in "Fuel economy scandal"),^[20] Nissan began the acquisition of a 34% pale in Mitsubishi Motors, with the aim of making Nissan the largest and controlling shareholder of Mitsubishi and turning Mitsubishi Motors into a member of the Renault–Nissan Alliance (the "Alliance"). Nissan has said that they plan to share some car platforms and jointly develop future vehicles with Mitsubishi Motors.^[21] Nissan's acquisition of the 34% controlling involvement in Mitsubishi was completed in October 2016, when Carlos Ghosn, the chairman of Nissan, Renault, and the Alliance, also became chairman of Mitsubishi.^[8] Ghosn remained chairman of Mitsubishi until his dismissal following his abort by the Japanese government in November 2018, when Mitsubishi CEO Osamu Masuko assumed the chairmanship.^[22]

Mitsubishi Motors plans to stop developing car platforms for the Japanese market and instead use vehicle bases made by ally Nissan Motor beginning around 2026 as the auto industry requires huge investments in technology.^[23]

Other alliances [edit]

1974–1984 Colt and Lonsdale [edit]

The Colt name appears frequently in Mitsubishi's history since its introduction as a rear-engined 600-cc sedan in the early 1960s. Today, it most commonly refers to the Mitsubishi Colt subcompact in the company's line-upward, but is besides the proper noun of MMC's import/distribution company in the Great britain, the Filly Motorcar Company, established in 1974. For the beginning decade of its existence, before Far Eastern auto manufacturers had established their reputations, its cars carried the "Filly" badge in Britain instead of "Mitsubishi".

In 1982 and 1983, Mitsubishi introduced the Australian-built Mitsubishi Sigma to the UK equally the Lonsdale YD41 in an attempt to circumvent British import quotas, but the new brand was unsuccessful. It then carried Mitsubishi Sigma badges in 1983–84 before abandoning this functioning entirely.

1975–2003 Hyundai [edit]

South Korean manufacturer Hyundai, built the Hyundai Pony in 1975 using MMC's Saturn engine and transmissions. Korea's first car, it remained in production for 13 years. Mitsubishi held up to a x% stake in the visitor, until disposing of the terminal of its remaining shares in March 2003.

The 1985 Hyundai Excel was sold in the United States equally the Mitsubishi Precis between 1987 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) and Mitsubishi Proudia (every bit the Hyundai Equus).

1985–1991 Samcor [edit]

The Due south African Motor Corporation (Samcor) (previously as well chosen Sigma Corporation and MMI) 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 Croaking minibus and the Mitsubishi Canter as the Ford Triton light truck.^[24] ^[25] Samcor also fabricated a version of the Mazda 323 for the UK market called the Sao Penza,^[26] which was a marque similar Lonsdale YD41, invented to get effectually British import quotas.

1985–2010 Proton [edit]

Malaysian manufacturer Proton was initially very dependent on Mitsubishi Motors, assembling their 1985 Proton Saga using generally MMC components at a newly established facility in Shah Alam. Subsequent models like the Wira and Perdana were based on the Lancer/Colt and Galant/Eterna, respectively, earlier the company finally produced entirely self-developed vehicles, the Waja in 2000, and the Proton Gen-2 in 2004. At its meridian, the Proton controlled 75% of its domestic market, fifty-fifty later Mitsubishi concluded their 22-year partnership in 2005, selling their 7.ix% pale for RM384 million^[27] to Khazanah Nasional Berhad. All the same, in October 2008, Proton renewed its technology-transfer agreements with MMC, and the Proton Inspira (the Proton Waja replacement) was again based on the Mitsubishi Lancer platform and officially launched on 10 November 2010.^{[ needs update ]}

1991–2012 Volvo Cars [edit]

Mitsubishi participated in a joint venture with rival carmaker Volvo and the Dutch regime at the former DAF plant in Born in 1991. The operation, branded NedCar, began producing the first-generation Mitsubishi Carisma alongside the Volvo S40/V40 in 1996. The factory later produced the latest Mitsubishi Colt and the related Smart Forfour (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 industrial conglomerate VDL Groep.^[28] ^[29] ^[30] Mitsubishi Motors Europe's headquarters and their European distribution middle are still based in Born.

1991–2019 Suzuki [edit]

In Indonesia, Mitsubishi offered the Colt T120SS low-cal truck between 1991 and 2019 based on the Suzuki Conduct. Despite the same bodywork, the fascia is unique to Mitsubishi and it is manufactured in the local Mitsubishi constitute. The engine used is either Mitsubishi'due south 82.0 cu in (1,343 cc) carbureted 4G17 or the bigger 89.half dozen cu in (ane,468 cc) fuel-injected 4G15. In 2005, the brotherhood continued by rebadging the Suzuki APV to Mitsubishi Maven. Few styling changes were applied, and the 4G15 engine was used instead of Suzuki's G15A engine. The Maven was discontinued in 2009 due to poor sales. The Colt T120SS was discontinued in 2019 equally the base vehicle, the Suzuki Comport was updated, and Mitsubishi was non interested in continuing the brotherhood.^[31]

In Nihon, Mitsubishi had rebadged the Suzuki Solio as the Delica D:ii and the Suzuki Every as the Minicab.

1998–2016 Hindustan [edit]

Indian manufacturer Hindustan had a joint venture with Mitsubishi that started 1998. Models produced at the Tiruvallur, Tamil Nadu establish included the Mitsubishi Pajero Sport (third generation) until 2016.

1999–2001 Volvo Trucks [edit]

Upon selling its Volvo Cars division to Ford in January 1999, Volvo Group purchased a 5% stake in Mitsubishi Motors in November of that aforementioned year, but sold its stake to shareholder DaimlerChrysler in March 2001.^[32]

1999–2011 Groupe PSA [edit]

Mitsubishi has been allied with Groupe PSA since 1999, subsequently they agreed to co-operate on the development of diesel engines using the Japanese visitor's gasoline direct injection engineering science.^[33] They united again in 2005 to develop the Peugeot 4007 and Citroën C-Crosser sport utility vehicles (SUVs), based on the Japanese visitor's Mitsubishi Outlander.^[34]

Two further ties were established between the companies in 2008, kickoff with the establishment of a jointly owned production facility in Kaluga, which will industry up to 160,000 Outlander-based SUVs for the fast-growing Russian market place.^[35] They are also collaborating in the research and evolution of electric powertrains for small urban vehicles.^[36] Japanese paper Nikkei claims that PSA will sell the electrical city car Mitsubishi i MIEV in Europe past 2011.^[37]

2004–2010 Volkswagen [edit]

In Europe, Mitsubishi Motors used diesel engines supplied by High german manufacturer Volkswagen for some of its mid-sized cars,^[38] such every bit the Lancer,^[39] Grandis,^[40] and Outlander.^[41] From 2010, they were superseded with Mitsubishi's self-developed 4N1 diesel fuel engines.

2006–nowadays Chinese joint ventures [edit]

As of 2006, Mitsubishi had iv joint ventures with Chinese partners:^[42]

South E (Fujian) Motor Co Ltd^[42]
Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co Ltd^[42]
Harbin Dongan Automotive Engine Manufacturing Co Ltd^[42] – a subsidiary of Harbin Hafei Machine Manufacture Group Co Ltd
Hunan Changfeng Motor Co Ltd^[42] – a subsidiary of Chang Feng (Group) Co Ltd

2010–2016 Nissan [edit]

In Dec 2010, Mitsubishi and Nissan agreed to form a joint venture (later named "NMKV Co., Ltd.") to develop kei cars for the Japanese market.^[43]

2016–nowadays Renault-Nissan-Mitsubishi Alliance [edit]

In 2016, Nissan uncovered evidence that Mitsubishi'south fuel-economy testing numbers were erroneous and had been erroneous since the start of the venture, affecting 625,000 cars produced by NMKV.^[20] The upshot of the "fuel economic system scandal" was that Nissan caused a controlling interest in Mitsubishi, every bit detailed under "Membership in Renault-Nissan-Mitsubishi Alliance".

By 2023, Groupe Renault^[44] ^[45] volition be supplying Mitsubishi with two models built in France, with the cars to exist rebadged as Mitsubishis only for RHD markets in mainland Europe. The firm has no plans to sell any of the models in Ireland or the U.k., where the Colt Machine Visitor's Mitsubishi aftersales business was bought every bit a going concern by International Motors (a firm previously known for launching Hyundai onto the UK market place in 1981).^[46] ^[47] ^[48] ^[49] ^[50] ^[51] ^[52]

Japan sales channels [edit]

Mitsubishi dealer in Akita

Mitsubishi Motors maintained ii retail sales channels that sold specific models, called "Machine Plaza" and "Galant Store". Certain models were exclusive to either channel, while some models were available at both channels, as required by local Japanese market weather. More than recently, due to counterfoil of larger sedans, the sales channels accept been combined into one franchise that sells all models, including kei cars and commercial commitment vehicles.

Historical troubles [edit]

Asian economic downturn [edit]

The benefits Mitsubishi had seen because of its potent presence in South-east Asia reversed themselves as a event of the economical crisis in the region, which began in 1991 with the advent of the plummet 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 language marker. In September of that yr, the company closed its Thai factory in response to a crash in the country's currency and plummeting consumer demand. The large truck plant, which had produced eight,700 trucks in 1996, was shut down indefinitely. In improver, Mitsubishi had fiddling support from sales in Nihon, which slowed considerably throughout 1997, and were affected past 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 modest pct of the American market, the bear upon of the turmoil in the Asian economy had a greater result on Mitsubishi, and the company'south 1997 losses were the worst in its history. In addition, it lost both its rank as the third-largest automaker in Nippon to Mazda, and marketplace share overseas. Its stock toll brutal precipitously, prompting the visitor to abolish its yr-terminate dividend payment.^[53]

In Nov 1997, Mitsubishi hired Katsuhiko Kawasoe to replace Takemune Kimura as company president. Kawasoe unveiled an aggressive restructuring program that aimed to cutting costs by ¥350 billion in three years, reduce personnel by 1,400, and render the company to profitability by 1998. While the program had some initial success, the company's sales were still stagnant equally the Asian economy connected to sputter. In 1999, Mitsubishi was forced once over again to skip dividend payments. Its interest-bearing debt totalled ¥1.seven trillion.

Vehicle defect encompass-upwards [edit]

In what was referred to as "i of the largest corporate scandals in Japanese history",^[54] ^[55] Mitsubishi was twice forced to acknowledge to systematically roofing up defect problems in its vehicles. Four defects were first publicised in 2000, only in 2004, information technology confessed to 26 more going back as far as 1977, including failing brakes, fuel leaks, and malfunctioning clutches. The result on the company was catastrophic, forcing it to recall 163,707 cars (156,433 in Japan and seven,274 overseas) for complimentary repair.^[56] Further recalls by Fuso Truck and Autobus brought the full number of vehicles requiring repair to about one million. The affair led to the resignation and subsequent arrest of president Kawasoe, along with 23 other employees who were too implicated.^[57] Three of them have since been acquitted, with the judge stating that no official asking from the Send Ministry ordered them to submit a defect study.^[58]

0–0–0 [edit]

In an effort to boost sales in the U.Due south. in the early 2000s, Mitsubishi began offering a "0–0–0" finance offer—0% down, 0% interest, and $0 monthly payments (all repayments deferred for 12 months). Initially, sales leapt, only at the end of the twelvemonth's "grace period", numerous credit-risky buyers defaulted, leaving Mitsubishi with used vehicles for which they had received no coin and which were now worth less than they cost to industry. The company'southward American credit functioning, MMCA, was eventually forced to make a United states of america$454 million provision against its 2003 accounts as a result of these losses.^[59] As a result, sales plummeted to 243,000 in 2003, 139,000 in 2004, 124,000 in 2005, and 119,000 in 2006.^[threescore]

End of Australian production [edit]

In October 2005, MMAL introduced the Mitsubishi 380 to the Australian market as the replacement for its long-running Mitsubishi Magna, and the sole 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 just six months, Mitsubishi scaled back production from 90/day, and reduced the working week from v days to four.^[61] The Australian automobile manufacture remained concerned 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 past exports outside of the Australian and New Zealand markets. On v February 2008, Mitsubishi Motors Australia announced it would be endmost down its Adelaide associates found by the end of March. Betwixt 700 and 1,000 straight jobs would be lost and upwards to 2,000 jobs would be lost in industries supporting Mitsubishi'south local manufacturing operations.^[62]

End of Western European production [edit]

With operating losses ¥22 billion ($287 1000000) in Europe for the fiscal year to March due to stagnant sales in a continent beset by dubiousness of a raging debt crunch,^{[ citation needed ]} in February 2012, Mitsubishi decided to stop production in Western Europe by the end of 2012.^[63] ^[64] On 1 Oct, it announced that the Dutch industrial conglomerate VDL Groep had taken over NedCar from Mitsubishi, retaining all 1,500 employees.^[65]

Finish of Due north American production [edit]

In 1988, Mitsubishi opened a production facility in the United states of america in Normal, Illinois. The facility was known as Diamond-Star Motors, and was initially a joint venture with Chrysler, but Chrysler sold its stake in the institute to Mitsubishi in 1993. After 1995, the facility was known as Mitsubishi Motors Manufacturing America (MMMA). At its peak in 2000, the facility produced over 222,000 vehicles per year, but following the reject of Mitsubishi in North America, the plant operated well below capacity for years.

Finally, in July 2015, Mitsubishi appear that information technology would shut the plant by November, but would continue to sell automobiles in North America. In 2014, the plant had produced simply 69,000 vehicles, roughly one-quarter of its capacity.^[66] Product at the plant ended on 30 Nov 2015, and near of the employees were laid off. The institute continued to operate with a minimal staff to produce replacement parts until May 2016, after which it closed permanently.^[67]

Withdrawal from UK market [edit]

Mitsubishi appear that the company would leave the United kingdom market place due to financial reasons past Autumn 2021.^[68] Afterwards, Mitsubishi's British presence will be express to aftersales.^[69]

Fuel economic system scandal [edit]

In early on 2016, Mitsubishi partner Nissan plant discrepancies betwixt Mitsubishi information and actual fuel consumption while working in new micro (kei) cars for both companies, the eK Wagon, eK Space, Nissan Dayz, and Nissan Dayz Roox.^[twenty] At the fourth dimension, Mitsubishi manufactured micro cars for Nissan, which had never produced that class of vehicle itself. Mitsubishi admitted that they had been giving incorrect information on fuel consumption from 2002 onwards, using inaccurate test methods.^[lxx] Later, the visitor said it used fuel-economy testing methods that did non comply with Japanese regulations for 25 years, much longer than previously known.^[71] Mitsubishi direction said they did not know about the consequence and that the incorrect information came from the micro automobile evolution department. They ordered an investigation led by investigators not affiliated with the company.^[72] The resultant scandal culminated in Nissan acquiring a decision-making interest in MMC in May 2016.^[73] Equally a issue, Nissan agreed to invest 237.4 billion yen (Usa$2.2 billion) in exchange for receiving a 34% controlling ownership stake in Mitsubishi Motors.^[8]

Due to dilution of existing shares, other Mitsubishi group companies (Mitsubishi Heavy Industries, Mitsubishi Corp., and Banking company of Tokyo-Mitsubishi UFJ) had their combined holdings in Mitsubishi Motors fall to about xx% from 34% currently.^[74]

MMNA stated that vehicles sold from 2013 in the U.s. featured accurate fuel-economy data and were thereby not affected by the scandal.^[75]

In May 2016, Mitsubishi Motors appear Tetsuro Aikawa was to resign as the president of the company in consequence in June. Both Mitsubishi Motors and Aikawa denied whatsoever top management interest in the mileage scandal. The company said much of the mileage-testing piece of work was assigned to a subsidiary and a lack of scrutiny existed of such work.^[76]

Revitalization plan [edit]

After a starvation of new investment caused by lack of cashflow, the company introduced the laurels-winning Mitsubishi i kei motorcar in 2006, its first new model in 29 months, while a revised Outlander has been introduced worldwide to compete in the popular XUV market place niche.^[77] The next generation of its Lancer and Lancer Development was launched in 2007 and 2008.^[78]

Tedious-selling vehicles were eliminated from the U.S. market, purchase projections for the Global Engine Manufacturing Brotherhood have been scaled back, and 10,000 jobs have been shed to cut costs with 3,400 workers at its Australian plant and other loss-making operations still under threat. Meanwhile, in an effort to increase production at its U.S. facility,^[79] new export markets for the Eclipse and Galant are being explored in Ukraine, the Center East, and Russia, where the visitor's bestselling dealership is located.^[80] Mitsubishi has also been active in OEM production of cars for Nissan,^[81] and appear a similar partnership with Groupe PSA in July 2005 to industry an SUV on their behalf.^[34]

Mitsubishi reported its first profitable quarter in 4 years in the 3rd quarter of 2006,^[82] and returned to profitability by the finish of the 2006 financial year, and sustained profitability and global sales of 1,524,000 through 2007 and later on.^[83] ^[84]

In Jan 2011, the company appear its next midterm business plan to introduce eight hybrid and bombardment-powered models by 2015. Information technology aimed to sell its start two plug-in hybrids by fiscal 2012.^[85]

In May 2016, Nissan appear a controlling purchase of Mitsubishi Motors for an estimated Us$two billion. Nissan stated that no major changes were planned for Mitsubishi Motors and sharing of technologies and platforms can be expected betwixt the two automobile manufactures.

Management [edit]

In 2014, Tetsuro Aikawa was appointed equally the president of the company, becoming the first in more than a decade to take spent an entire career at the company. The career of Aikawa had been mainly in product development, although he was involved in manufacturing and Nihon domestic sales lately. Osamu Masuko, the previous president, joined the visitor from Mitsubishi Corp. in 2004. MMC endured 8 presidents between 1989 and 2004.^[86]

Electrical vehicles [edit]

Mitsubishi Motors started selling its i MiEV, the all-electric minicar with a lithium-ion bombardment pack tucked nether its flooring, to retail customers in the summer 2009, a year ahead of schedule. The automaker had initially planned to start leasing the minicar-based vehicle to businesses and municipalities in the summer 2009 and to wait until 2010 for the retail launch.^[87] It has also announced its plans to offer five other eastward-drive vehicles.^[88]

Mitsubishi Motors aims to cut the price of its electric vehicles to 2 million yen ($21,890) past financial 2012—down 30%.^[89]

Motorsport [edit]

Mitsubishi has almost half a century of international motorsport experience, antedating fifty-fifty the incorporation of MMC. Beginning with street races in the early 1960s, the company establish itself gravitating towards the challenge of off-route racing. It dominated endurance rallies in the 1970s, the Dakar Rally from the '80s, and the Group A and Grouping North classes of the World Rally Championship through the 1990s. Ralliart (later Mitsubishi Motors Motor Sports), was Mitsubishi's racing subsidiary, although the company ceased competing formally in 2010.^[90]

Circuit racing [edit]

Mitsubishi's motorsport debut was in touring auto racing in 1962, when it entered its Mitsubishi 500 Super Deluxe in the Macau Yard Prix in an effort to promote sales of its beginning postwar passenger car. In an auspicious debut, the diminutive rear-engined sedan swept the meridian four places in the "Nether 750 cc" category, with Kazuo Togawa taking grade honours.^[91] The company returned the post-obit twelvemonth with their new Mitsubishi Colt 600 and once again swept the podium with a 1–2–3 in the "Under 600 cc" class.^[92] In its final year of contest with touring cars in 1966, Mitsubishi scored a podium clean sweep in the "750–grand cc" class of the 1964 Japanese Grand Prix with the Filly 1000, their starting time front end-engined competition vehicle.^[93]

The visitor began concentrating on the Japanese GP's emerging open-cycle "formula car" categories from 1966, winning the "Exhibition" class. They besides scored class 1–two in 1967 and 1968, and reached the podium in 1969 and 1970.^[94] They finished on a loftier with an overall ane–2 in the 1971 Japan GP, with the two litre DOHC F2000 driven past Kuniomi Nagamatsu.^[95]

Off-road racing [edit]

Mitsubishi Lancer 1600 GSR.

The East African Safari Rally was by far the near gruelling event on the World Rally Championship calendar in the 1970s. MMC developed the Lancer 1600 GSR specifically for the marathon race, and won at the first attempt in 1974. Their highpoint was a clean sweep of the podium places in 1976 in an issue where only 20% of the starters typically reached the finish. They too achieved a 1–two–3–4 in the 1973 Southern Cross Rally, the first of four consecutive victories in this effect with drivers Andrew Cowan and Kenjiro Shinozuka.^[96]

During the 1980s, Mitsubishi connected to participate in the WRC, first with the Lancer EX2000 Turbo and the Starion. Information technology and so scored its showtime outright Group A victories with a Galant VR-4 in the late '80s, Mitsubishi homologated the Lancer Evolution, and in the hands of Finland'southward Tommi Mäkinen, winner of the drivers' title for iv consecutive years (1996–1999), they won the manufacturers' championship in 1998. They have won 34 WRC events since 1973.^[97] The Lancer Evo has also dominated the FIA championship for showroom-ready cars, winning vii consecutive Group N titles with four unlike drivers from 1995 to 2001. Even in 2002, when it ostensibly lost the title, the class-winning manufacturer was Proton using a Lancer Evo-based Pert.^[98]

Mitsubishi is besides the most successful manufacturer in the history of the Dakar Rally. MMC'south maiden entry was in 1983 with their new Pajero, and but three attempts were needed to find a winning formula. Since then, they have won in 1992, 1993, 1997, 1998, and between 2001 and 2007, an unprecedented seven sequent victories and 12th overall with nine different drivers.^[99] They too won the 2003 FIA Cross-State Rally World Cup, along with Carlos Sousa.

Partnership with Jackie Chan [edit]

Mitsubishi has had a 30-twelvemonth-long association with actor Jackie Chan, who has used their vehicles almost exclusively in his movies throughout his career.^[100] ^[101] ^[102] The Jackie Chan Cup, first held in 1984,^[103] is an annual celebrity car race involving international motor journalists and starlets from across Asia in Mitsubishis with professional touring motorcar drivers aslope for assistance, and was held before the Macau GP until 2004, when it moved to Shanghai.^[104] In September 2005 Ralliart, Mitsubishi's motorsport arm, produced 50 Jackie Chan Special Edition versions of the Lancer Evo IX; Chan acts as the honorary director of Team Ralliart China.^[105] ^[106]

Locations [edit]

Top ten Mitsubishi Motors vehicle sales by country, 2018^[107]
Rank	Location	Vehicle sales
1	Republic of indonesia	146,805
2	Communist china	139,856
3	United States	118,075
4	Nippon	104,611
5	Australia	84,826
6	Thailand	84,560
7	Philippines	65,894
8	Germany	52,196
9	Russia	45,391
ten	Uk	30,952

The company has vehicle manufacturing facilities in Nihon, the Philippines, Thailand, and Indonesia, and 12 plants co-owned in partnership with others.^{[half dozen]} ^[108] In Brazil, it has a product agreement with a local group with no direct investment from MMC.^[109] It also has iii further engine and transmission manufacturing plants, 5 R&D centres, and 75 subsidiaries, affiliates, and partners. Its vehicles are manufactured, assembled, or sold in more than 160 countries worldwide.^[6]

Inquiry, design, and administration [edit]

Nihon

Minato, Tokyo: Head Role and Tokyo Design Studio
Okazaki, Aichi: Auto Research & Evolution Center
Uzumasa, Ukyō, Kyoto: Motorcar Research and Development Center
Hokkaidō: Automobile Enquiry & Evolution Center, Tokachi Proving Ground
Mitsubishi Machine Gallery (三菱オートギャラリー), one, Nakashinkiri, Okazaki^[110]

Worldwide

Trebur, Hessen, Germany: Mitsubishi Motor R&D of Europe GmbH (MRDE)
Ann Arbor, Michigan, The states: Mitsubishi Motors R&D of America, Inc. (MRDA) Caput Part
Cypress, California, The states: Mitsubishi Motors R&D of America, Inc. (MRDA) Research and Design Heart

Product facilities [edit]

Japan ^[111]

Okazaki, Aichi: Okazaki Establish (previously Nagoya Institute)
Kurashiki, Okayama: Mizushima Vehicle & Powertrain Plant
Sakahogi, Gifu: Pajero Manufacturing Co., Ltd.
Uzumasa, Ukyō, Kyoto: Powertrain institute
Koka, Shiga: Powertrain establish