Mitsubishi withdraws from the European market

Mitsubishi withdraws from the European market

In a recent topic, the CEO of Mitsubishi announced that the company intends to direct its investments to more profitable markets. This new direction will stop the introduction of new models in the European market.

The program called “Small but Beautiful”, which runs from 2020 to 2022, aims to focus development and investment efforts on markets where the carmaker has the largest market shares, especially in Asia. A manufacturer wants to reduce its fixed costs by about 20% and increase its profits. Since the repair plan is being implemented quickly, the next one Mitsubishi Outlander the new generation will therefore not be released in Europe.

It’s not easy for small car manufacturers
Smaller manufacturers like Mitsubishi are struggling to keep pace in terms of development against the larger groups. They find themselves with life cycles that are too long for their models, and cars quickly lose their competitiveness in the face of more sophisticated and modern products.

The manufacturer also hopes to rely on its cooperation with Nissan and Renault to accelerate the development of new models while reducing development costs as much as possible. This alliance will enable Mitsubishi to accelerate the development of electric models thanks to technologies developed by the Nissan-Renault group.

It is difficult to predict the future of the brand in Canada and North America, but the manufacturer recently announced the arrival of several new models in the next few years; there is also talk of a redesign of the Mirage and Eclipse Cross and a new generation Outlander. Mitsubishi has confirmed that the new generation of Outlander will be released in 2021; it will be necessary to wait until 2022 in the case of the hybrid version of the rechargeable PHEV, a highly anticipated vehicle.

MitsubishiJapan’s sixth-largest automaker, is forecasting a loss of $1.79 billion for the current fiscal year.


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