Less than two years into its membership in the Renault-Nissan-Mitsubishi alliance, Mitsubishi Motors is full speed ahead on growth.
Two of its top global executives were present at Mitsubishi Motors of Canada’s dealer conference in Whistler, B.C., to provide an update on its mid-term plan “drive for growth,” which was announced in 2017 and runs through 2019.
The objectives of drive for growth is threefold — over 30 per cent growth in sales volume, growing revenues by 30 per cent and a profit margin of 6 per cent.
In a media roundtable, Mitsubishi Motors Corp. Chief Operating Officer Trevor Mann, Senior Vice President of Global Marketing and Sales Guillaume Cartier, along with Mitsubishi Motors Sales of Canada President Tony Laframboise laid out specifics regarding drive for growth that will see the company spend US$1.5 billion more from 2017-19 than it did from 2014-16.
Based on the results of fiscal year 2017, it would appear the increased spending is beginning to pay off. Global sales volume was up 19 per cent to 1.1 million units, and the company posted significant gains in key markets such as China (70 per cent, due largely to the localization of a new model introduced at the end of 2016), Japan (20 per cent), the U.S. (10 per cent) and Canada (9.2 per cent). Profitability checked in at 4.4 per cent.
The positive trend is continuing this year where, through May 31, Mitsubishi has posted 20 per cent year-over-year (YOY) sales growth and, so far at least, appears on track to eclipse the forecast of 1.25 million units set for fiscal year 2018. With respect to Canada, Mitsubishi’s sales are up 20 per cent YOY.
In terms of sales mix, Mann said the company aims to put a greater focus on its core models (Eclipse Cross, Outlander, Outlander PHEV and RVR) by growing the group’s sales contribution from 60 per cent to 70 per cent by the end of the mid-term plan in 2019.
New product launches, such as the Eclipse Cross earlier this year, will take place during the mid-term plan but some of those new products will be localizations and regional offerings. For the long-range product plan (2018-19 through 2025), Mann said the focus will remain on SUVs and expanded electrification, but a sedan and hatchback could also join the lineup.
In addition to the mid-term plan, Mitsubishi is also focused on the rollout of its new dealer image: a global program that will gradually makeover the brand’s 5,000 dealerships in the coming years.
The new look, which features a black, white and grey colour scheme with red accent lines is designed to embody Mitsubishi’s new brand message “Drive your Ambition,” which was announced last year.
The predominantly black exterior features the “Dynamic Slope” with the Mitsubishi Motors brand mark, which will not only adorn the company’s dealerships — it will also serve as the new corporate visual identity for Mitsubishi at every consumer touchpoint worldwide, including auto shows, websites and brochures.
In Canada, Laframboise noted that half of Mitsubishi’s 93 Canadian dealers will be rebranded by the end of 2019, with the first scheduled to open this fall in Ajax, Ont.
