2005 Mitsubishi Lancer Ralliart Sedan 4-door 2.4l on 2040-cars

Auto blog

Nissan to pull out of venture fund with Renault in cost-cutting drive, insiders say

TOKYO — Nissan is likely to pull out from a venture capital fund it runs with alliance partners Renault and Mitsubishi Motors, as part of the Japanese automaker's drive to cut costs and conserve cash, two sources said. Nissan will formally take a decision on whether to leave the fund, Alliance Ventures, by the end of this month, the two Nissan insiders told Reuters, declining to be identified because the information has not been made public. The likely move comes after Nissan's junior partner, Mitsubishi Motors Corp, told an alliance meeting last week that it would no longer continue to inject money into the fund, one of the sources said. The decision to leave the Amsterdam-based fund was all but a done deal, the other source said, adding: "Of course we're out. The house is on fire." A Nissan spokeswoman said it was speculation and declined to comment. A Mitsubishi spokesman said no decision had been made. The move comes as Nissan — which has seen its earnings slump — is now facing a downturn in China, its biggest market, due to the impact of the coronavirus outbreak. China sales plunged 80% last month. It also highlights the extent of the automaker's cost-cutting under new CEO Makoto Uchida, who is under pressure for a quick turnaround. Alliance Ventures is aimed at finding "learning opportunities" for the alliance through investing in startups, and is supposed get up to $200 million (153.3 million pounds) a year from the three alliance partners, although it never achieves that full amount, the first source said. It was set up under former alliance head Carlos Ghosn, whose dramatic arrest in Japan culminated in an escape to his childhood home of Lebanon in December. Ghosn faces multiple charges in Japan, including of under-reporting earnings and misappropriation of company funds, all of which he denies. According to its website, the fund was set up with a $200 million initial investment and aims for up to $1 billion by 2023. Portfolio companies include WeRide, a Chinese robo-taxi startup and Tekion Corp, a cloud-based retail platform for cars. "It wasn't established by Ghosn as a way to make money. It was for those learning opportunities we get from investing in smart startups," the first source said. "But given the tough financial situation we are facing, we are looking at investment return." Reporting by Norihiko Shirouzu; Editing by David Dolan/Louise Heavens/Susan Fenton.

Mitsubishi dealers would really like a truck to sell

While Mitsubishi is switching gears to focus on crossovers, that won't address a market that its dealers would like to be in. While answering questions from the press last night, Don Swearingen, executive vice president and COO of Mitsubishi's North American office, mentioned that its US dealers have a pickup truck high on their "shopping lists." In fact, he said that a truck is pretty much at the top. Mitsubishi does already have a small pickup truck it sells in foreign markets, badged as the Triton or L200. However, Swearingen said that just because dealers want a truck doesn't mean it's going to happen, citing various obstacles to bringing one to market. If, for example, Mitsubishi brought over the Triton, the company would have to go through the long, expensive process of certifying it for US safety and emissions regulations, not to mention making sure it fulfilled American buyers' demands. There's also the Chicken Tax, which levees a steep tariff on trucks built outside of the US and imported in. One possible way Mitsubishi could circumvent all of those issues, though, would be to leverage its new partnership with Nissan. Nissan already sells Frontier small pickups in the US, and Mitsubishi could simply redesign that model to suit its style. It's something that both companies are familiar with as well. Mitsubishi previously sold a restyled Dodge Dakota as the Raider, and Nissan allowed Suzuki to rebrand the Frontier to be sold as the Equator for a short time. It would certainly be a quick way to get into the truck market. However, Mitsubishi would also need to decide if such a product would actually be profitable, in addition to satisfying dealers. Related Video:

Mitsubishi's first US chairman since 2007 charged with revitalizing brand

Have a look at Mitsubishi North America's vehicle page and you'll find seven cars in four model lines: i-MiEV electric hatch, Lancer sedan, Lancer Evolution and Sportback, Outlander and Outlander Sport, and Galant sedan. The Galant has 3.9 tires in the automotive grave, and the only hope for mainstream excitement, the Eclipse coupe and Spyder, had hemlock poured down their crankcases last year. Increasing the quotient of bleak, the Lancer isn't due for a refresh until 2014, the coming Outlander PHEV will sell in miniscule numbers when it does arrive, a little sports car has been nixed and the only other Mitsu being considered for our landmass is the Colt, which, for its stellar fuel economy numbers, looks like a car designed by Pikachu. There's also that matter of declining NA market share in a rising overall market, Mitsubishi's piece of the total pie currently hovering around the 0.4-percent mark according to Automotive News.
The company has decided to do more about it, reassigning Executive Vice President and Head Officer of the Headquarters Product Projects & Strategy Group Gayu Uesugi to be the new chairman of Mitsubishi Motors North America. It will be the first time in five years that someone has filled the chairman position at MMNA.
The hope is that with Uesugi's 35 years with the company, his experience in the company's global product plan and his success in emerging market strategy, he's the man to "[develop] a product plan and growth strategy for the US market" that will put things right. Or at least better. He will work with Yoichi Yokozawa, who has been CEO of MMNA since last year. There are more details on the move in the press release below.