Having less competition in a niche segment is more of a reason to re-enter it, as it creates more of a demand. Mitsubishi could sell SUVs and a select 2 or 3 models of cars while cutting the fat in hideous models like the Mirage. Tgey chose to keep that and kill their most popular line in the Lancer proving they have no clue what their base wants. They presently have 3 similarly sized SUVs under 200hp, and the Mirage. That's a recipe to conpete against yourself among Mitsubishi buyers, and drive Lancer shoppers to an dozen other brands. Mitsubishi should mirror Subaru on a smaller scale.

 

My guess is that because Mitsubishi cars sales were doing so terribly, entering a niche car market was not something that would be profitable. Kind of like Ford - stick to what is bringing in their money. Let the others compete with cars. It sure would have been cool to keep the Evo as the single sports car, but they don't sell like Mustangs.

 

A lot of people buy Ford cars and will now go somewhere else. Bring in a new Lancer with multiple models and target those Ford buyers.