Small cars the focus now

MITSUBISHI Motors Australia Limited (MMAL) is working to overturn Mazda’s rise to fourth position in the Australian new vehicle market, with sales growth that will see its volume rise from 65,000 in 2007 to about 80,000 in “the next couple of years”.

Speaking at the Melbourne International Motor Show last week, MMAL president and CEO Robert McEniry said this increase would occur largely on the back of new small vehicles, such as a micro hatch and SUV, and wider market coverage, which increases to 85 per cent this year.

The forecast is directed at 2009/10, with total sales this year expected to remain at around 65,000 – despite the fact that Mitsubishi will cease production of the 380 sedan, which accounted for 11,000 sales in 2007, at the end of this month.

Last year, Mazda sold almost 78,000 vehicles and is now also aiming for 80,000. “We actually see us growing quite strongly, and I think we should probably settle out at about 80,000 over the next couple of years,” he said.

“We are confident, as long as we can get supply – that’s our key issue at the moment – that we will get the same sales volume results this year as we did last year, if not more.” Asked whether Mitsubishi could see itself returning as the entrenched number four car brand in Australia, Mr McEniry told GoAuto: “That’s certainly our objective. Maybe not this year – availability will be the key thing. But, certainly, we see – as we fill out our product range, and some of that product range we don’t get until later this year, for example the sportsback version of the Lancer – but once all that’s in place, and we’ve got some other product coming early next year as well, I think we’ll see us grow very strongly.” He said the “i” city car, and a micro SUV based on the Concept-cX shown at Melbourne, were strong prospects, as were diesel engine variants across a range of categories.

Left: MMAL president and CEO Robert McEniry.

In Mitsubishi’s latest three-year business plan announced on Friday, the new-product launch schedule included a small ‘lower-impact’ SUV, adapting mini-cars for overseas use, bringing an electric vehicle to world markets, expanding the number of mid-size platform models and adding an SUV based on the Triton one-tonne utility. “We are looking at … opportunities that are in the Mitsubishi range globally at the moment,” Mr McEniry said.

“But we have to work through the ADR (Australian Design Rule) issues on some of those cars. “We’d be very keen, very keen, to get the icar in, but whether we can get all the ADRs to comply with Australian requirements,” he said, rating its prospects as 50:50 and confirming that a wide-bodied version was also in development “but that’s still a couple of years out”.

“What you’re really seeing (from Mitsubishi globally) is a much greater emphasis on diesel engine – high-performance, green diesel, etc – and as they roll those engines out next year in the different categories I think you’ll see other cars coming.

“They (Mitsubishi) are really trying to hit all the sweet spots, and the key growth segment is this segment (compact SUV), so I’ll be looking forward to that being finalised for production.

“The trend to getting smaller and more fuel-efficient cars is not going to go away,” he said. Mr McEniry described showroom traffic since last month’s announcement that it was pulling out of Australian manufacturing as “embarrassingly good”.

“We’ve really been delighted,” he said. “I’d have to say that we’ve got the most positive, motivated lot of dealers I have ever, ever dealt with, and they are very excited about the future and their sales are just roaring ahead – including the 380. We’ve sold every 380.” Mr McEniry also emphasised that Mitsubishi would not resort to discounting to grow market share.

“Over the past 18 months or so, we’ve had regular programs coming through, whether they’re value models or whatever, and one of the things we’ve said to our dealers is that we would be consistent in our marketing approach.

“There are some obvious opportunities, too, with the Olympics coming up ... but we are not doing it on the basis of buying market share, or discounting, or whatever. “Our residual values, or used-car values, have also been coming up over that period.

So it’s getting the right balance, and not forcing the market – and we’re not forcing the market. We are actually continuing to grow honest interest and floor traffic in our products.”

Mitsubishi's point of no return:

SPEAKING at his first public engagement as the president of the 100 per cent imported brand, Mitsubishi Motors Australia president Robert McEniry said that the Japanese corporation had long demonstrated its commitment to manufacturing in Australia – but had reached a point of no return.

“It gets to a point where after $1.5 billion of effectively Japanese shareholders’ funding, you have to look at what the future brings and whether you can just keep putting in $150 million per year average – cash – to keep the manufacturing operation going,” he said.

The last car rolls off the production line at Tonsley Park on March 28.

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