Mitsubishi Motors in Distress: Will the U.S. Market Pullout Come in 2020?

The Mitsubishi Motors brand has been facing significant challenges in the U.S. market, with a downturn in sales and limited media attention. Despite refocusing on smaller and mid-size crossovers, the company seems to be sliding into financial difficulties. With the recent news of Mitsubishi Fuso light trucks withdrawing from the U.S. and Canadian markets, concerns about the future of Mitsubishi Motors in the region are mounting.

Current State of Mitsubishi Motors

Since the mid-2010s, Mitsubishi Motors has been struggling to regain its footing in the North American market. The primary reason for this downturn has been a shift in consumer preferences towards larger, more luxurious vehicles. However, the company seems to have adapted, focusing on smaller crossovers that can appeal to a broader market segment. This strategic shift has led to some improvement in sales performance, albeit not to the levels that were expected. The company's efforts have resulted in better results, but the overall picture remains cloudy.

Media Presence and Product Lineup

A key factor in Mitsubishi's decline in the North American market has been its virtually non-existent media advertising. In an era where social media and digital marketing play a significant role, this simple omission can be costly. Moreover, the company's product lineup is criticized as being woefully inadequate. Vehicles like the Mirage have notoriously low sales, which raises questions about the strategic rationale behind importing such a model. Other offerings in the lineup, while being relatively affordable, do not provide the needed value that American consumers are seeking.

Mitsubishi Fuso: A Critical Business Decision

The recent news of Mitsubishi Fuso light trucks withdrawing from the U.S. and Canadian markets is a critical business decision with far-reaching implications. Mitsubishi Fuso, a subsidiary of Mitsubishi Motors, has been the backbone of the company's commercial vehicle segment in the North American markets. Withdrawing from these markets can have severe consequences for the parent company. This move suggests a decision to focus on other market segments or concentrate resources elsewhere.

Consumer Loyalty and Trust

Despite the challenges, there remains a core group of consumers who are loyal to Mitsubishi Motors. These loyal consumers are often former owners who have had positive experiences with the brand's products and service. They express their commitment and loyalty through social media and forums. One such message reads, "Mitsubishi Horses do not run well on North American courses, I will always remain loyal to Mitsubishi Cars and Trucks with total justification." This sentiment reflects a deep-rooted faith in the quality and reliability of Mitsubishi vehicles, even in the face of current challenges.

Future Outlook and Potential Exits

With the ongoing financial troubles and strategic realignments, the future of Mitsubishi Motors in the U.S. remains uncertain. Many industry experts believe that a pullout from the U.S. market is inevitable. However, the timing and the exact strategy remain to be seen.

The company may explore several options, including re-focusing on regions with better market performance, scaling back operations, or even selling off its North American assets. The outcome will largely depend on how effectively the company can adjust to the changing market dynamics and consumer preferences.

Conclusion: What's in Store for Mitsubishi Motors?

The upcoming years will be crucial for Mitsubishi Motors as it navigates the complexities of the North American market. While the immediate future is cloudy, there is a chance for the company to turn things around with strategic decisions and a renewed focus on meeting the needs of its customers.

Will Mitsubishi Motors choose to exit the U.S. market? Only time will tell. For now, the company is in a critical period, and its success will depend on its ability to adapt and innovate in the face of current challenges.