Can You Hear The Drums Mitsubishi ?

[csv8]

Mitsubishi is cutting the price of its new 380, just six months after the model was launched, breaking the industry's "golden rule" for a new car.

The limited edition $29,990 380LE is $4500 less than the recommended retail price and it has $2500 worth of extras.

The LE adds climate-control airconditioning, Bluetooth phone system, rear spoiler, alloy wheels, cruise control, reversing sensors, chrome exhaust and fog lamps.

The 380 is considered to be the car to make or break Mitsubishi as a car-maker in Australia.

However, poor sales combined with a general downturn in the large car market, have forced Mitsubishi to cut annual production of the 380 by 5000 units and lay off a further 250 workers. The company has also announced that 380 production will cease during March.

Mitsubishi sold 719 of the 380 model last month, well short of the original forecast of 3000 a month. And that was a figure the company said it needed to achieve to survive.

Sad to say, but I think Mitsu's days are numbered.

[EA2BA]

yeah it appears to be that way, the 380 was never as good as they tried to persuade people it was, it might have one awards, but for styling it gets a 1 out of 10.

[mik]

yep doesnt look good, shame really i drove a rental previouse magna model to sydney drove quiet well for a fwd, i guess toyota will goble up the front wheel drives sales if mitsubishi slams the doors.

[aualright]

It doesn't work for me either, which is a shame. Look at some points and you can see why they may be failing: Large car market shrinking; Falcon and Commodore better than they have ever been in all facets; 380 styling similar to a Maxima from the front (and they fail to sell well).

They have also tried to move away from the conservative image, which would be similar to BMW trying to steer clear of the 'Mosman Mum' market with their X5 and attempting to sell it to 4WD enthusiasts...!!

Sales Hari Kari imo.

*****

[DDXR6T]

Heading right on down the poo chute. I'd rather be driving a sleeker looking magna compared to this glorified audi-esque shaped sh1tbox.

Job cuts + Price cuts = *beeeeeeeeyyyyyyyyoooooow CRASH*

[Brute6]

Its still a Magna in my books. Large Front wheel drive cars always struggle in Aussieland.
Word inside the industry is that they won't make it til the end of the year.... I hope not, for competition's (Ford, Holden Toyota, Mitsu) sake....

[aimzes]

I'd rather be driving a sleeker looking magna compared to this glorified audi-esque shaped sh1tbox.

but dont you drive a BA which has rather "audi-esque" looks?

i like the 380. its a good looking car imo and i find that its has (like most magnas) a better build quality than ford/holden inside and out. disagree? i dont care.

id like to buy one, but what happens if/when mitsu aust goes bust? how will that effect spare parts, resale etc?

[BA_Turbs]

Originally Posted by aimzes

but dont you drive a BA which has rather "audi-esque" looks?

i like the 380. its a good looking car imo and i find that its has (like most magnas) a better build quality than ford/holden inside and out. disagree? i dont care.

id like to buy one, but what happens if/when mitsu aust goes bust? how will that effect spare parts, resale etc?

I agree with you, except where you said about buying one. I wouldn't; unless we start talking an AWD turbo.

[Kenster]

Originally Posted by aimzes

but dont you drive a BA which has rather "audi-esque" looks?

i like the 380. its a good looking car imo and i find that its has (like most magnas) a better build quality than ford/holden inside and out. disagree? i dont care.

id like to buy one, but what happens if/when mitsu aust goes bust? how will that effect spare parts, resale etc?

likely chance with mitsubishi part will probably sell for 10yrs for all current car owner than no more just like what Datsun did when they crash in the Aust car market.

Im just guessing here but just keep an eye on the papers and news, not to mention there goes another few thousand people off work now :

[DOC]

Originally Posted by csv8

The 380 is considered to be the car to make or break Mitsubishi as a car-maker in Australia.
.

Perception and reality are 2 diferent things, sure they are in a spot and i think others have summed up thier chances.

What i think they got terribly wrong is they rode on a bit of hype up front but did not launch with a big advertising campaign ( they just let the hype run from pre launch / launch ) In addition they should have adverstised there LE MK1 from day one with a strong campaign.

They needed the these cars hitting the road from day one in numbers, from there it would have been easy to build perception that the car was doing great and back of the advertising a little.

In addition they now have announced some fleet sales etc. Once again marketing asleep at the wheel, these guys should have had these contracts in the bag from day one causing a short fall / demand once again perception of all is good.

They may have built a great car but the team responsible for sales has to be taken into account and hold some blame.

They are spending more bucks trying to prop it up and devalueing the existing cars / perception than it would have if they done it right to begin with.

My dad taught me you can sell sheite if you wrap it in chocolate. But unless they get a very good marketing team in to back them now ( and kick out what they have ) its game set and match.

[Smoke Pursuit]

Dealers are alot at fault here to I think.

They were slack because of the Magna and the bullИИИИ they went through trying to sell them which has shined through with the way they try and sell the 380.

My local dealer who is Denmac Mitsubishi must have ИИИИ for brains, any other dealer whether it be Holden or Ford always put new models on the front of their lineups, specially when your located on the Pacific Highway. Well this mob put them at the back of the yard where no one can see them.

I know if I was running the yard I'd make sure there was one of each model sitting right on the front of the lot with some form of writing on the windscreens, instead of parking them in behind lancers.

Really you have to laugh at the cheifs at Mits with what they have said all along in the intial lead up to the launch, they have spoken about resale, refinement etc but have given the punters nothing, instead they have gone back on their word and run for cover. I can now see why Phillips resigned just before the car was released, he obviously parked it beside a Falcon / Commodore and knew from the outset that Australia wouldn't buy it, gezzus even the AU did better and at the time wasnt a make or break car, but nearly broke Ford neways.

The 380 VRX is a nice car, the styling isnt 100% but it beats a povo pack Commodore thats for sure, I think if they had actually got the pricing right to start with, say $32k for the base model (insteadl of $35k) and $37k for the VRX then they may have done alright, the model differentiation isn't there and the *** end of the basic non VRX types are crap. If it was me id make the VRX boot standard across the range, it certainly would fix the rear of the base model 380.

[Dave_au]

Apparently I've been informed that MMAL has just made a major fleet sale to the commonwealth bank, and sales for February should be over 1000.

The new limited edition car, worth $29,990, is a dealer fitted pack for the 2005 plated baseline model cars, in response to the heavy discounting the other three manufacturers have been doing in the last few months.

MMAL marketing needs to take a long hard look at itself to get the sales going. I for one was disapointed that pre-release market research had failed to detect some of the most stupid but naggling trim issue complaints by motoring journalists and the general public:

The digital clock in the base model looks tacky
The rear doors have no "grab rails"
The rear aircon vents cannot be turned off
There is no reach on the steering wheel
The steering wheel is ugly
The dash looks cheap.

Plus they priced the vehicle to high to start with, even wheels commented "If only the 380 was a couple of thousand less".

Then there is the stigma of the 380 being the new Magna - they should have launched the 380 earlier if possible, say during March 2005, and keep the TW Magna production going at the same time. Sure, there are probably some batch and tooling costs that would not have made it worthwhile, but at least then, it wouldn't be "the magna replacement".

Rumour has it that they have made a few magna wagons whilst producing the 380.

[FASTXR]

Another take on the situation (with a bit of MMA spin-doctoring thrown in!)...

http://finance.news.com.au/story/0,1...06-462,00.html

[FASTXR]

Originally Posted by ShockWaveXR6na

Dealers are alot at fault here to I think.

My local dealer who is Denmac Mitsubishi must have ИИИИ for brains, any other dealer whether it be Holden or Ford always put new models on the front of their lineups, specially when your located on the Pacific Highway. Well this mob put them at the back of the yard where no one can see them.

I know if I was running the yard I'd make sure there was one of each model sitting right on the front of the lot with some form of writing on the windscreens, instead of parking them in behind lancers.

On a similar vein, I've been amazed to see how many Mitsu dealers have run full-page ads in the weekend papers, with the top half of the page yelling out the great deals on run-out Magna's. Where's the info on the 380? Down the bottom, along side the Lancers and the Tritons. :
How the hell are you going to get a new model established and on the road, when your dealers are pouring double the amount of time an energy into shifting superceded models?

Personally, I feel sorry for Mitsubishi. As an everyday, family car for Joe Average, the Magna was in my opinion just as good as the Falcon and Commodore. Bugger me, I'm actually one of the few people who think the 380 is quite an attractive car. Unfortunately, a number of departments (marketing being a major one) have dropped the ball over the past few years, and its going to take a miracle to get them out of this hole.

[Falcon Freak]

Tomorrow is Mitsubishi's last day of 380 production until the 27th of March. I hope that the planned four week break is only four weeks and not more because if they extend this break then there is a good chance that they may never restart production of the 380.....

FF

[Dave_au]

Originally Posted by Falcon Freak

I hope that the planned four week break is only four weeks and not more because if they extend this break then there is a good chance that they may never restart production of the 380.....

Its not that dire yet. MMJ would incur a massive exit tax anyway, probably be cheaper to just wind back production if it was that bad, which I dont think it is. The break will give them some good time to have a good hard look at themselves and the 380.

[EBII Fairmont]

The 380 is a nice car I reckon. But I don't see it worth investing money in a mitsubishi at the moment. I feel they are going no-where but into the ground.

Do you guys reckon mitsubishi's day's are numbered?

[Falcon Freak]

Originally Posted by EBII Fairmont

Do you guys reckon mitsubishi's day's are numbered?

Unfortunately the question is not 'if' it will happen but 'when' will it happen.

FF

[XR8 Uterous]

Mistubishi Australia wont be around this time in 2 years unless something really drastic happens...

[Dave_au]

FF your always the pessimist.

[Falcon Freak]

Have you been to Mitsubishi recently? Obviously not. They cannot get any smaller as they are operating on a skeleton staff. Either the 380 sells or they fold. MMC is in no position to bail out MMAL due to their own problems on the Japanese domestic market. Daimler-Chrysler are no longer there to support MMAL either. The only thing which would prevent the closure of MMAL is if the South Australia government asked MMC to repay all of the money SA has invested in MMAL to keep the company operating.

MMAL needs to survive for the good of the Australian automotive manufacturing industry. But there are too many negatives and hardly any positives to indicate that MMAL can survive. The mood within MMAL is pessimistic so I am not the only one who feels this way.

FF

[Dave_au]

Originally Posted by Falcon Freak

Have you been to Mitsubishi recently? Obviously not. MMC is in no position to bail out MMAL due to their own problems on the Japanese domestic market. Daimler-Chrysler are no longer there to support MMAL either. The only thing which would prevent the closure of MMAL is if the South Australia government asked MMC to repay all of the money SA has invested in MMAL to keep the company operating.

I dont think you should comment just on your own personal speculation, you need to leave that to the accountants and analysts.

[Falcon Freak]

OK then what measure do you suggest is used to determine MMAL's current well being and long term survival? A crystal ball? :

FF

[svo347]

I thought the 380 was specifically marketed for Australia by an Australian.
Firstly he should have gotten rid of the front wheel drive and given it alot more ommpf in performance

[Dave_au]

I'd use qualitative and quantitative information from the financials, interviews with management and industry analysis as a good start.

Ibisworld has a fair bit of info if you have access to it.

And another thing, everyone just focuses either on MMAL or MMJ - for obvious reasons, no one bothers to have a look at the Mitsubishi group itself, a collection of 29 quite large companies which are currently "bailing out" MM

[vztrt]

Originally Posted by Dave_au

I'd use qualitative and quantitative information from the financials, interviews with management and industry analysis as a good start.

Ibisworld has a fair bit of info if you have access to it.

And another thing, everyone just focuses either on MMAL or MMJ - for obvious reasons, no one bothers to have a look at the Mitsubishi group itself, a collection of 29 quite large companies which are currently "bailing out" MM

Well in an interview with the head of Mitsubishi in Japan he himself believed that the plant was going to close down within four years. Mind you this was before the 380 came out, but the way sales are going it dosn't look good.

Remeber that during the EA Ford were only producing 180 cars a day compared to the 522-550 a day (this is going to be reduced very soon).

[apolloxbgt]

Originally Posted by vztrt

Remeber that during the EA Ford were only producing 180 cars a day compared to the 522-550 a day (this is going to be reduced very soon).

Yeah but mitsi is selling 700 a month ,it will be sad to see them go,but it is inebidible.

Reminds me of when nissan bowed out of the local market,except in their case they went from making one most relaible australian cars ever built (r31 series skylines),not to mention rwd,to making a fwd dog like the pintara(and trying to export a car that was already availble in japan back to the japanese).
Then theres the avalon............

Goes to show,rwd sells large cars in Austraila.

[9lives]

: Shame really finally got evo to oz now its gunna be gone again.

[Falcon Freak]

Originally Posted by 9lives

: Shame really finally got evo to oz now its gunna be gone again.

Evo Lancer has nothing to do with the 380. So how did you conclude that the Evo will disappear from Australia?

FF

[9lives]

If mitsu decides to shut down ops altogether in aust....