Mitsubishi has announced a new, three-year plan to increase profitability, and the key to doing that is by introducing new and heavily revised models. And, you guessed it, this comprises mostly SUVs.
The plan, called “Drive for Growth” sees the Japanese company aim to increase sales by 30 percent to reach 1.3 million vehicles. By doing this it will boost revenue to 2.5 trillion yen.
By the end of 2019, the Japanese company hopes to have lifted its operating profit margin by six percent at least, through a combination of targeted marketing and more efficient building processes.
The company needs to do this, though, as it’s being left behind in the sales race. Its current models are aging and Mitsubishi’s competitors have been launching new models or update vehicles left, right and center.
So, during the next three years, Mitsubishi will launch a staggering 11 new or revised models, with six to be completely new, including the Eclipse Cross and the XPANDER.
There hasn’t been any word yet on whether a version of the e-VOLUTION concept will make it into production, but we’re holding our breath that at least some of the torque vectoring technology will filter into future production models.
Mitsubishi Motors CEO, Osamu Masuko, said that: “Drive for Growth is a new roadmap for Mitsubishi Motors. We will rebuild trust in our company as our highest priority, successfully launch new vehicles, and achieve a V-shaped financial recovery. These will be the foundations for our future sustainable growth, which will involve increased capital expenditure and product development spending.”
By the end of the three-year strategy, Mitsubishi says its five best-selling global models will be SUVs, 4WDs, and plug-in hybrid electric vehicles (PHEV) which will account for 70 percent of all sales.
A lot of that potential will come from when the revised Mitsubishi Outlander PHEV will hit the market early next year.
The company says that most of the major growth will be in the ASEAN region, Oceania, United States, China, and Japan.
You’ll note that this is a similar strategy to Nissan which has its “M.O.V.E. to 2022” plan, which also comprises mostly SUVs and crossovers.
It started with the Nissan Terra which is to launch throughout the ASEAN region also and then expand into other markets.