Mitsubishi Motors North America

Last updated
Mitsubishi Motors North America
TypeSubsidiary
Industry Automotive
Founded1981;43 years ago (1981)
Headquarters4031 Aspen Grove Drive, Suite 700, Franklin, TN 37067, United States
Key people
Mark Chaffin, President and CEO [1]
Products Automobiles, parts
Services Sales, R&D, Financing, repairs
Parent Mitsubishi Motors (100%)
Subsidiaries Mitsubishi Motors R&D of America, Inc. (MRDA)
Mitsubishi Motor Sales of Canada, Inc. (MMSCAN)
Website mitsubishicars.com

Mitsubishi Motors North America, Inc. is the U.S. operation of Mitsubishi Motors Corporation, overseeing sales and research and development functions. The company manufactures and sells Mitsubishi brand cars and sport utility vehicles through a network of approximately 350 dealers.

Contents

Its administrative headquarters is in Franklin, Tennessee, [2] while the Mitsubishi Motors R&D of America, Inc. (MRDA) head office is in Ann Arbor, Michigan.

History

MMNA was formed in 1981 after tensions arose between Mitsubishi and its then U.S. import partner, the Chrysler Corporation, over conflicts in the international subcompact market, leading the ambitious Japanese company to establish its own sales network. [3] The first year's allocation of 30,000 vehicles in 1982 were the $6,500 Tredia sedan, and the $7,000 Cordia and $12,000 Starion coupes, followed shortly by the Mighty Max pickup truck, and were sold through 70 dealers in 22 states. [3]

1980s: Diamond-Star Motors

Diamond-Star Motors Logo Diamond-starmotorslogo.png
Diamond-Star Motors Logo

The Diamond-Star Motors joint venture with Chrysler in Normal, Illinois, began in 1985, as American-built cars would not be subject to the same restrictive quotas as vehicles imported from Japan. The company sold 67,000 cars in the United States in 1987, but by the time the new factory came onstream the next year, it offered a capacity of 240,000 vehicles. With this new capacity, Mitsubishi made a fresh push to expand its U.S. operation in 1989, increasing its sales network by 40 percent to 340 dealerships and producing its first nationwide advertising campaign.

1990s: Fastest growing U.S. brand

1991 was a landmark year for Mitsubishi in the United States. It bought Chrysler's share of Diamond-Star for $100 million, and became the first Japanese owner of a U.S. car rental agency when it purchased Value Rent-a-Car [4] Sales of Mitsubishi-badged vehicles reached almost 190,000. [3] The remainder of the 1990s provided both ups and downs for MMNA. The rising yen and a weak global economy caused a drop in production and profits, but it weathered the storm better than its Japanese competitors.

While its global operations were suffering in the wake of the 1997 East Asian financial crisis, MMNA reported banner results, breaking its sales records every year between 1999 and 2002 and seeing growth of 81 percent to 345,000 vehicles, while the company improved its position in Harbour and Associates' Assembly Productivity Ranking from last to first. [5] [6] At this point Mitsubishi was the fastest growing auto brand in the United States. [7]

2000s: Decline and expansion

In 2002 MMNA expanded to Canada and Puerto Rico. Troubles began to emerge in 2003. One of the roots of their rapid growth was a "0–0–0" finance offer—zero percent down, zero percent interest, and nothing per month (repayments deferred for 12 months)—aimed at increasing MMNA's annual sales to 500,000 vehicles. However, numerous credit-risky buyers ended up defaulting at the end of the year's "grace period", leaving Mitsubishi with used vehicles for which they'd received no money and which were now worth less than they cost to manufacture. [8] [9] The company's U.S. credit operation was forced to make a $454 million provision against its 2003 accounts as a result of these losses. [10]

In the wake of this, as well as a Japanese recall cover-up scandal, sales plummeted from 2003 to 2005,. [11] New introductions had mixed success, with the Outlander and Eclipse models showing sales growth in 2006, but the Endeavor SUV failing to meet expectations. A new Lancer compact car debuted in 2007, [12] and in an effort to exploit unused capacity at its Normal, Illinois, plant more Galant sedans were produced for the export market. [13] In 2008 Puerto Rico operations were moved to their Central and South America region division.

2010s: Turnaround begins

Mitsubishi's North American R&D facility in Ann Arbor, Michigan in 2010 Mitsubishi R&D laboratory ann arbor.JPG
Mitsubishi's North American R&D facility in Ann Arbor, Michigan in 2010

2015 was a record setting year for MMNA, selling five million vehicles to date and 95,342 for the year in the United States, continuing a streak of 22 consecutive months of year-over-year sales increases and a 23 percent sales increase over the previous year. [14] [15] Additionally many changes were made in 2015; MMNA ended their captive finance subsidiary Mitsubishi Motors Credit of America, Inc. (MMCA). [16] [17]

In July, MMNA announced that they would be closing their sole North American production facility in Normal, Illinois, known Mitsubishi Motor Manufacturing of America which built the Outlander Sport model, to focus more on the growing Asian market. Production at the plant ended in November 2015, and the plant produced replacement parts until final closure in May 2016. Electric carmaker Rivian Motors has taken over the facility. [18] Currently, Mitsubishi is still selling cars in North America, but has since retired the Lancer Evolution. [19]

Former administrative headquarters in Cypress, California, pictured in 2019 Mitsubishi Motors North America Headquarters Cypress California 2019.jpg
Former administrative headquarters in Cypress, California, pictured in 2019

2016 was another big year for MMNA as the Mirage, Lancer, Outlander and RVR/Outlander Sport were all refreshed in addition to releasing the Mirage sedan (G4). This contributed to increased year end sales, the largest retail sales year ever in Canada and the 4th consecutive year of sales growth in the United States. In Canada the Lancer had the largest year-over-year increase at 9.4% followed by the RVR at 7% and Outlander at 3.5%. [20] In the United States the Outlander drove the largest sales increases year-over-year at 39.5% followed by the Mirage at 3.3%. [21]

On June 25, 2019, Mitsubishi Motors announced it would be moving its North American headquarters from Cypress, California, to Franklin, Tennessee, a suburb of Nashville. [22] Sister company Nissan USA also has its North American headquarters in the city.

In June 2020, speculation began that Mitsubishi may scale back its presence in North America despite sales growth or possibly withdraw altogether as part of a larger Renault-Nissan-Mitsubishi Alliance plan that will see Mitsubishi focus more on Southeast Asia and Oceania while Nissan focuses more on North America, Japan and China and Renault focuses on Europe. [23]

On March 9, 2022, Mark Chaffin named president and chief executive officer of Mitsubishi Motors North America, replacing Yoichi Yokozawa. Yokozawa, appointed to the role in March 2020 until March 2022, it was return to Mitsubishi Motors headquarters in Tokyo and take on a new regional management role. Chaffin was officially appointed as President and CEO on April 1, 2022. [1]

Sales

YearCanadaUnited StatesTotal
2000-314,417314,417
2001-322,393322,393
2002 ?360,149360,149+
2003 ?237,548237,548+
200410,783127,359138,142
200510,39199,600109,991
200610,957107,640118,597
200716,759106,719123,478
200818,63967,91086,549
200919,78639,97059,756
201019,50455,68375,187
201120,51179,02099,531
201219,67157,79077,461
201321,10462,22783,331
201422,70477,643100,347
201521,38495,342116,726
201622,29396,267118,560
201722,706103,686126,392
201825,237118,074143,311
201925,535121,046146,581
202016,09287,387103,479

Sources: [15] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43]
NOTE: Mexico sales are not included, because distribution and sales are handled by FCA Mexico. [44]

Current vehicle lineup

Cars

2021 Mitsubishi Mirage ES in Mystic Black Met., front right.jpg
Mirage

SUVs

2022 Mitsubishi Eclipse Cross SE (United States) front view.jpg 2022 Mitsubishi Outlander.jpg 2022 Mitsubishi Outlander PHEV P 4WD 2.4 5LA-GN0W (20220904).jpg Mitsubishi Outlander Sport -- Front.jpg
Eclipse Cross
Outlander
Outlander PHEV
Outlander Sport

Past notable vehicles

3000gtlev.jpg 2012 Mitsubishi Eclipse SE -- 07-11-2012.JPG 2009 Mitsubishi Galant -- NHTSA.jpg 2017 Mitsubishi Lancer 2.4 ES AWC, front left side.jpg Mitsubishi Lancer EVO X.jpg 2003-2005 Mitsubishi Montero -- 03-18-2011.jpg
3000GT
1990-1999		 Eclipse
1990-2012		 Galant
1989-2012		 Lancer
2002-2017		 Lancer Evolution
2003-2015		 Montero
1990-2006

Controversies

In 1994 MMNA was the subject of two lawsuits brought against it. The first, filed by 29 women in December 1994, accused the company of fostering a climate of sexual harassment at its Normal, Illinois plant. Then, in April 1996 the Equal Employment Opportunity Commission (EEOC) filed a class action suit on behalf of approximately 300 other women who worked at the plant. Mitsubishi initially denied any problems at its plant but later hired former U.S. Labor Secretary Lynn Morley Martin to recommend changes to its policies and practices. The 1994 suit was settled for $9.5 million in August 1997, and an agreement with the EEOC was reached later that year as well. [45]

Related Research Articles

<span class="mw-page-title-main">Mitsubishi Motors</span> Japanese automobile manufacturer

Mitsubishi Motors Corporation is a Japanese multinational automobile manufacturer headquartered in Minato, Tokyo, Japan. In 2011, Mitsubishi Motors was the sixth-largest Japanese automaker and the 19th-largest worldwide by production. Since October 2016, Mitsubishi has been one-third (34%) owned by Nissan, and included in the Renault–Nissan–Mitsubishi Alliance.

<span class="mw-page-title-main">Hindustan Motors</span> Car manufacturing company in India

Hindustan Motors is an Indian automotive manufacturer based in Kolkata, West Bengal, India. It is a part of the Birla Technical Services conglomerate. The company was the largest car manufacturer in India before the rise of Maruti Udyog.

Diamond-Star Motors (DSM) was an automobile-manufacturing joint venture between the Chrysler Corporation and Mitsubishi Motors Corporation (MMC). The name came from the parent companies' respective logos: three diamonds (Mitsubishi) and a pentastar (Chrysler). Diamond-Star Motors was officially renamed Mitsubishi Motor Manufacturing of America, Inc. (MMMA) in 1995, four years after Mitsubishi took sole control of the plant, and from 2002 to 2016 its official name had been Mitsubishi Motors North America, Inc. (MMNA) Manufacturing Division.

<span class="mw-page-title-main">Mitsubishi Lancer Evolution</span> Motor vehicle by Mitsubishi Motors

The Mitsubishi Lancer Evolution, popularly referred to as the 'Evo', is a sports sedan and rally car based on the Lancer that was manufactured by Japanese manufacturer Mitsubishi Motors from 1992 until 2016. There have been ten official versions to date, and the designation of each model is most commonly a Roman numeral. All generations use two-litre intercooled turbo inline four-cylinder engines and all-wheel drive systems.

<span class="mw-page-title-main">Mitsubishi Mirage</span> Range of automobiles

The Mitsubishi Mirage is a range of cars produced by the Japanese manufacturer Mitsubishi from 1978 until 2003 and again since 2012. The hatchback models produced between 1978 and 2003 were classified as subcompact cars, while the sedan and station wagon models, marketed prominently as the Mitsubishi Lancer, were the compact offerings. The liftback introduced in 1988 complemented the sedan as an additional compact offering, and the coupé of 1991 fitted in with the subcompact range. The current Mirage model is a subcompact hatchback and sedan and it replaces the Mitsubishi Colt sold between 2002 and 2012.

<span class="mw-page-title-main">Mitsubishi Outlander</span> Motor vehicle

The Mitsubishi Outlander is a compact crossover SUV manufactured by Japanese automaker Mitsubishi Motors since 2001. It was originally known as the Mitsubishi Airtrek when it was introduced in Japan.

<span class="mw-page-title-main">China Motor Corporation</span> Taiwanese automobile manufacturer

China Motor Corporation is an automobile manufacturer based in Taipei, Taiwan.

The GS platform is a compact car platform co-developed and shared by Mitsubishi Motors and DaimlerChrysler.

<span class="mw-page-title-main">Mitsubishi Motors Australia</span>

Mitsubishi Motors Australia Limited (MMAL) is a fully owned subsidiary of Mitsubishi Motors Corporation of Japan. The company was established in 1980 and began vehicle manufacturing in that year, having taken over the facilities of Chrysler Australia. Australian production ceased in 2008 and since that time the company has been exclusively a vehicle importer.

<span class="mw-page-title-main">VDL Nedcar</span>

VDL Nedcar is an automotive manufacturing company in Born, Netherlands. Since December 2012 it has been owned by the Dutch industrial conglomerate VDL Groep. Previous owners were Mitsubishi Motors and Volvo Cars. The company had its origins in a DAF car factory which opened in 1968. VDL Nedcar is the largest automotive factory in the Netherlands, with a production capacity of 240,000 vehicles a year. It produced about 120,000 cars in 2020. It is also the only manufacturer of production vehicles in the Netherlands. VDL Nedcar produced its millionth vehicle, a Mitsubishi Space Star, on 4 October 2000. VDL Nedcar currently produces the Mini Cabrio convertible, Mini Countryman, Mini Countryman-PHEV and BMW X1 for BMW Group.

<span class="mw-page-title-main">Mitsubishi 4B1 engine</span> Reciprocating internal combustion engine

The Mitsubishi 4B1 engine is a range of all-alloy straight-4 piston engines built at Mitsubishi's Japanese "World Engine" powertrain plant in Shiga on the basis of the Global Engine Manufacturing Alliance (GEMA). Although the basic designs of the various engines are the same, their exact specifications are individually tailored for each partner. The cylinder block and other basic structural parts of the engine were jointly developed by the GEMA companies, but the intake and exhaust manifolds, the cylinder head's intake and exhaust ports, and other elements related to engine tuning were independently developed by Mitsubishi.

<span class="mw-page-title-main">Mitsubishi RVR</span> Motor vehicle by Mitsubishi Motors

The Mitsubishi RVR is a range of cars produced by Japanese manufacturer Mitsubishi Motors from 1991 to 2002 and then from 2010 until present. The first two generations were classified as compact multi-purpose vehicles (MPV), and the model introduced in 2010 is a subcompact crossover SUV.

MIEV (Mitsubishi In-wheel motor Electric Vehicle) or MiEV (Mitsubishi innovative Electric Vehicle) is the name given by Japanese automaker Mitsubishi Motors (MMC) to its alternative propulsion technologies. From late 2006, “MiEV” encompasses all of Mitsubishi Motors’s electric drive systems work, including lithium-ion batteries, in-wheel motors and other technologies related to electric vehicle (EV), hybrid-electric vehicle and fuel-cell vehicles.

<span class="mw-page-title-main">Mitsubishi Motors (Thailand)</span>

Mitsubishi Motors (Thailand) is the Thai operation of Mitsubishi Motors Corporation. It became the first Thai automobile manufacturer to export vehicles overseas in 1988, and has remained the country's largest exporter every year since.

<span class="mw-page-title-main">Mitsubishi ASX</span> Subcompact crossover SUV

The Mitsubishi ASX is a subcompact crossover SUV manufactured by the Japanese automaker Mitsubishi Motors. On introduction, it was positioned below the Outlander in Mitsubishi's crossover SUV line-up, until the Eclipse Cross filled the gap between the ASX and Outlander in 2017. It was built on the GS platform closely shared with the Lancer and Outlander.

Reinforced Impact Safety Evolution (RISE) or Realized Impact Safety Evolution is the brand name of Mitsubishi's patented safety body construction system. It was first introduced in the 1996 Mitsubishi Galant. Initially designed to improve passive safety, the system has subsequently been developed to electronically integrate every aspect of car's active and passive safety features.

All Wheel Control (AWC) is the brand name of a four-wheel drive (4WD) system developed by Mitsubishi Motors. The system was first incorporated in the 2001 Lancer Evolution VII. Subsequent developments have led to S-AWC (Super All Wheel Control), developed specifically for the new 2007 Lancer Evolution. The system is referred by the company as its unique 4-wheel drive technology umbrella, cultivated through its motor sports activities and long history in rallying spanning almost half a century.

<span class="mw-page-title-main">Mitsubishi 4J1 engine</span> Reciprocating internal combustion engine

The Mitsubishi 4J1 engine is a range of all-alloy straight-4 engines. The main goal was declared as reduction on-road CO2 emission on new vehicles. According to cars specifications fuel consumption also was improved. Comparing to previous engine series (4B1) valvetrain configuration was changed from DOHC to SOHC, Variable valve lift (VVL) technology added. The engine usually is paired with the ecological features like Start-Stop system and EGR. That engine mostly is appearing in the cars Lancer X, ASX, Outlander on several markets across Japan, Europe and Latin America.

<span class="mw-page-title-main">Mitsubishi Eclipse Cross</span> Crossover SUV model from Mitsubishi Motors

The Mitsubishi Eclipse Cross is a compact crossover SUV produced by Japanese automaker Mitsubishi Motors since October 2017. It was previewed by the XR-PHEV and XR-PHEV II concepts, revealed in 2013 and 2015. The production version was first introduced at the 87th Geneva Motor Show in March 2017. It slots between the RVR/ASX/Outlander Sport and Outlander in Mitsubishi's crossover lineup.

References

  1. 1 2 "Mitsubishi Motors North America Names Mark Chaffin as President And CEO". Mitsubishi Motors North America Newsroom. 9 March 2022.
  2. ↑ "Mitsubishi Motors North America to Relocate U.S. Headquarters to". Bloomberg.com. 26 June 2019.
  3. 1 2 3 "Mitsubishi Motors Corporation", Funding Universe
  4. ↑ "If They Rent, They May Buy", TIME Magazine , May 14, 1990
  5. ↑ "Finbarr O'Neill Resigns From Mitsubishi Motors North America Mitsubishi Motors Executive Rich Gilligan Appointed to President and CEO Position", AutoChannel.com, January 4, 2005
  6. ↑ "Mitsubishi Motors North America, Inc. - Manufacturing Division", Mitsubishi Motors North America website
  7. ↑ ""Mitsubishi Motors"" (PDF). University of North Carolina at Chapel Hill-University of North Carolina. Archived from the original (PDF) on 2010-01-08.
  8. ↑ "Can Mitsubishi Pull out of its Skid?", Brian Bremner and Christopher Palmeri, BusinessWeek , September 29, 2003
  9. ↑ "It's the Dealers, Stupid!", Steve Findlay, Ward's Dealer Business, September 1, 2004
  10. ↑ "Mitsubishi Motors Announces First-Half FY 2003 Results, Gives Forecast for Full-Year FY 2003" Archived 2004-04-16 at the Wayback Machine Mitsubishi Motors press release, November 11, 2003
  11. ↑ "MMNA sales down 4% in 2006" [ dead link ], Scott Miller, The Pantagraph, January 5, 2007
  12. ↑ "Mitsubishi Motors to give new Lancer compact sport sedan global premiere at 2007 Detroit Motor Show" Archived 2007-02-12 at the Wayback Machine Mitsubishi Motors press release, December 11, 2006
  13. ↑ "Mitsubishi's turnaround hinges on new models, worker mindset", Yuzo Yamaguchi, The Detroit News , October 31, 2005
  14. ↑ "Mitsubishi Motors Achieves Five Million Vehicle Sales in the United States". mitsubishicars.com. 28 December 2015. Retrieved 22 April 2018.
  15. 1 2 "Mitsubishi Motors Closes 2015 Up Over 22 Percent For The Year". mitsubishicars.com. 5 January 2016. Retrieved 22 April 2018.
  16. ↑ "Mitsubishi Motors Taps Ally on Finance". 2015-04-27.
  17. ↑ "Ally to take over Mitsubishi's U.S. lending arm". 2015-04-27.
  18. ↑ "Union workers say goodbye to 27 years at Mitsubishi plant". 2015-11-30. Archived from the original on 2015-12-02.
  19. ↑ "Report: Mitsubishi to Close U.S. Production Facility". Archived from the original on 2015-07-25.
  20. ↑ "Mitsubishi Closes 2016 with Best Retail Sales Ever". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  21. ↑ "Mitsubishi Motors Closes 2016 With 4th Consecutive Year Of Annual Sales Growth". mitsubishicars.com. 4 January 2017. Retrieved 22 April 2018.
  22. ↑ "Mitsubishi Motors headquarters relocating to Franklin, bringing 200 jobs". 2019-06-25. Archived from the original on 2019-06-26.
  23. ↑ "Mitsubishi Could End up Dialing Down Its Efforts in the U.S." 22 June 2020.
  24. ↑ "Facts & Figures 2005" Archived 2007-03-05 at the Wayback Machine
  25. ↑ "Facts & Figures 2008" Archived 2009-03-20 at the Wayback Machine
  26. ↑ "Facts & Figures 2010" Archived 2012-06-16 at the Wayback Machine
  27. ↑ "Mitsubishi Motors Ends 2014 with Dramatic Sales Increase". mitsubishicars.com. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  28. ↑ "Mitsubishi Motors Reports Its Fifth Consecutive Year Of Sales Growth". mitsubishicars.com. 3 January 2018. Retrieved 22 April 2018.
  29. ↑ "Mitsubishi Motors Reports Best Annual Sales Since 2007, Best December Since 2006". mitsubishicars.com. 3 January 2019. Retrieved 4 January 2019.
  30. ↑ "MITSUBISHI MOTORS REPORTS BEST ANNUAL SALES SINCE 2007". mitsubishicars.com. 3 January 2020. Retrieved 3 January 2020.
  31. ↑ "Mitsubishi Motors reports fourth quarter, full calendar year 2020 sales". mitsubishicars.com. 5 January 2021. Retrieved 5 January 2021.
  32. ↑ "Mitsubishi Reports Record Year". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  33. ↑ "Mitsubishi Reports 6.2 Percent Increase For 2009". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  34. ↑ "Wrapping up 2010; RVR and Outlander power Mitsubishi sales to record December". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  35. ↑ "Record December powers Mitsubishi to best year ever". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  36. ↑ "Mitsubishi Sets All-Time Sales Record in 2013 : RVR leaps to best-seller status". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  37. ↑ "Mitsubishi Sets New Sales Record in 2014". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  38. ↑ "Outlander Drives Best Retail Sales Year for Mitsubishi". www.mitsubishi-motors-pr.ca. Archived from the original on 23 April 2018. Retrieved 22 April 2018.
  39. ↑ "Mitsubishi Motors Closes 2017 with Best Sales Ever". www.mitsubishi-motors-pr.ca. Archived from the original on 4 January 2018. Retrieved 22 April 2018.
  40. ↑ "Mitsubishi Motors Closes 2018 With Best Sales Ever". www.mitsubishi-motors-pr.ca. Archived from the original on 4 January 2019. Retrieved 4 January 2019.
  41. ↑ "Mitsubishi Motors Closes 2019 with Best Sales Year Ever". www.mitsubishi-motors-pr.ca. Archived from the original on 3 January 2020. Retrieved 3 January 2020.
  42. ↑ "Mitsubishi Motors Canada Reports End of Quarter and End of Calendar Year Results". www.mitsubishi-motors-pr.ca. 5 January 2021. Retrieved 5 January 2021.
  43. ↑ "Mitsubishi Brand Sales Figures -". goodcarbadcar.net. 30 October 2012. Retrieved 22 April 2018.
  44. ↑ "FCA México Reporta Incremento en Ventas de 11% en Diciembre de 2015; Mejor Diciembre desde 2010 y desde 2009". 4 March 2016. Archived from the original on 4 March 2016. Retrieved 22 April 2018.
  45. ↑ "MMNA and EEOC reach voluntary agreement to settle harassment suit", EEOC press release, June 11, 1998
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.