Tide turns for Mitsubishi

STRIVING to return to a firm number four in terms of Australian market share, and to survive as a manufacturer here, Mitsubishi last week recorded a mammoth 27 per cent increase in sales for last month compared to its performance in January.

It was an 18 per cent increase over February 2004, the organisation's (and Magna's) best second-month sales return for three years – and, according to the Mitsubishi Motors Australia president and CEO, Tom Phillips, evidence that consumer sentiment is turning back towards the three-diamonds brand.

"I think things are changing," he told GoAuto at the Melbourne motor show last week. "The dealers have a lot more confidence now than they've had for some time and I think the (warranty) offer is working.

"You can't go out and shout from the rooftops that things have changed until you see some real numbers and I think February is the first indication of it. I think March will be strong as well.

"We're turning the corner. We've still got a long way to go. We're in a run-out phase with this car (Magna) and I don't pretend that's going to be easy. We've still got eight months to go – but I think perceptions are changing, and the whole purpose of the campaign was to change the perceptions before we launch the new car."

Mr Phillips (left) said he expected a continued strong sales performance from imported cars and that special packs and pricing offers – but no further substantial discounts – would be used to maintain interest in Magna in its run-out. Production switches to the new car at the end of August.

"Most run-outs aren't easy and we don't expect this one to be easy, but we'll get through it," he said. "Our stock levels are right down, so everything's manageable at this stage."With 6.3 per cent market share in the year-to-date, Mitsubishi has deposed Nissan (6%) for fifth position and now sits behind Mazda (7.9%), the latter having sold more than 6000 vehicles for the first time last month.

This time last year, Mitsubishi had a 5.9 per cent share. In 2003, it held an 8 per cent share, down from 8.2 per cent in 2002 and 9.3 per cent in 2000.