So it would seem. In a recent article, dealers have asked for the return of Gagnon-style incentives (are those guys on crack or what?). No lesson learned here it seems. Finbarr O'Neill is very unlikely to listen. However, there is the need for better quality control at dealerships and I too hope this will be addressed. As far as I'm concerend, reduce the number of dealerships and only keep the ones with good consumer responses.

has started offering free maintenance on the 2004 Galant and Endeavor for 3years/45,000 miles. So far, virtually all visible changes have been to the advertising.
In terms of product, the 2004.5 Endeavor is getting a more power from the same engine, more options on the 2005 RalliArt, and the EVO MR will be released state-side.

Some of the above might help. consumer perception is very hard to fix. Worse yet, it can take a LOOOOOOOOOOOONG time. Advertising is one part. Product mix another. Good old fashioned quality service of course too. It's this last one that really needs to be addressed. FAST!

 

Yes it has. But it takes time to turn something like that around, before results can be seen. It will take time to create knowledgeable, professional salespeople out of current dealer employees, while a lot of more expereinced personnel have probably been lured away to other manufacters seeking bigger paychecks. Mitsubishi hopes to change that by providing a closer support group within each dealership for training and providing special sales incentives for outstanding performance. You aren't going to see a commerical on t.v. for salespersonnel bonuses.

And I have never had anyone ask me to see the "green" cars as the first question out of their mouths, or any other color for that matter. Second or third question perhaps, but not first.

 

They usually don't need to ask that. They can actually figure out the color of a car just by seeing it.. without even asking <GASP> heh.

GP How many females do you sell cars to? I am assuming you work at a dealership on this.

 

If moving the customer service up to noticable levels is on the list of things to To Do. great. Hopefully we'll see some of that.. Can you elaborate on the TV spot and what they are advertising in regards to salespersonnel bonueses? Is this regional? national?

 

you know what they should do? keep the $1000 loyalty discount indefinitely. that should promote loyal mitsubishi customers(like me!) to appreciate and like the product. I did not know honda had one until I traded the civic when I bought the pilot.

 

Quick question: Customer service is a very general topic. So I was wondering if you're referring to the service at dealerships, service at the 800 number, or service rendered by regional reps (referring to warranty claims)?

Also, what would be you suggestions for improvement (I have a few of them myself...)

 

One thing they can do to improve the dealership quality is enhance the experience. Add Acura like touches like a free loaner car if your needs service warrenty. Free wash and wax for each schedule service. Cut way down on the high pressure and baiting sales tatics. And I am sure there are more.

 

Well, since I am not privy to your sensitive information maybe just a few statistical quotes to prove your point then?

 

Well yeah, but the first request are usually car type (sedan, SUV with 3rd row) or specific car type (Stang 'conv, 4Runner). A specific color may come next but most people I run into have at least two color choices, likely three. Very few are dead set one and only one color.

Females are the majority of the business and are usually the ones that make the deciding choice in couples.

Mitsubishi will provide a loaner car if it is warranty work, but only if the service department is allowed the chance to fix it within one working day. After a big job our service department will wash a car, but rarely a wax.

No, no no - I said you WON'T see salespersonnel bonuses advertised for the simple fact that most of the public thinks we're overpaid leeches to begin with. The idea is to encourage people who work in multi franchise delearships to push a Galant over a Camry or Accord for the sake of earning more cash. It takes a savvy person with extensive knowledge about the car to do that, whereas Camry profit margins are razor thin an the sales pitch amounts to little more then "It's a Toyota or it's a Camry" Those of in single point stores will simply be encouraged to do better when traffic does come in, because we have to make a stronger better impression as people will likely cross shop our product with other Asian brands. We have to make our time count.

 

Mitsubishi Motors talking to investment funds, sources say
Reuters / May 13, 2004

TOKYO -- Japan's Mitsubishi Motors Corp. is talking to several investment funds about their possible participation in a rescue plan after main shareholder DaimlerChrysler AG pulled out last month, Mitsubishi group sources said Thursday.

A number of funds have expressed interest in participating in a bailout that is expected to total around $3.54 billion to $4.43 billion, the sources said.

Japan's Kyodo news agency and the Tokyo Shimbun daily reported that U.S. investment fund Ripplewood Holdings could inject $874 million into the car company.

Ripplewood, however, said it was not considering an investment in Mitsubishi Motors at this point.

"We have not put up our name as a candidate for Mitsubishi Motors, and we are not considering an investment," Ripplewood spokesman Atsushi Kuse said.

He added that there had been no request at this stage from Japan's fourth largest automaker for funding.

Mitsubishi Motors declined comment.

A separate source said Mitsubishi Motors was seeking cash from Phoenix Capital, a Tokyo fund that raises money in the capital markets to revitalize distressed companies. The fund has close ties with Mitsubishi Tokyo Financial Group, which owns the automaker's main creditor bank.

The maker of Pajero SUVs faces an uncertain future after DaimlerChrysler, which has a 37 percent stake, pulled the plug on a multibillion-dollar refunding last month.

Mitsubishi Motors badly needs cash to develop cars and overhaul its loss-making operations, and has been working with its other big shareholders -- trading house Mitsubishi Corp., machinery maker Mitsubishi Heavy Industries and the Bank of Tokyo-Mitsubishi -- to secure funding.

The three Mitsubishi group companies had initially planned to inject about $874 million into the ailing automaker through a capital increase but will probably seek a significant amount of funding from other group companies too, group sources said.

Mitsubishi Motors' new business plan is expected to be announced May 21, along with its results for last year.

Dogged by more than $10 billion of interest-bearing debt, Mitsubishi Motors is expecting a net loss of $629 million for the year that ended in March after its easy credit policy in the United States backfired.

Ripplewood led the consortium that bought the Long-Term Credit Bank of Japan five years ago. The bank had crumpled under a massive pile of bad loans and Ripplewood relaunched it as Shinsei Bank.

Shinsei made a successful debut on the Tokyo Stock Exchange this year, bringing huge profits to Ripplewood.

Late last month, a report that Mitsubishi Motors would seek help from cash-rich Toyota Motor Corp. also gave a boost to the stock despite denials from both companies.

 

Mitsubishi Motors to get $3.9 billion aid, shut Japan plant
Reuters / May 17, 2004

TOKYO -- Cash-strapped automaker Mitsubishi Motors Corp. is in final talks with the Mitsubishi group to receive 450 billion yen ($3.93 billion) in aid, including a capital boost and debt-equity swap, sources familiar with the talks said.

Mitsubishi Motors needs cash to develop new cars and overhaul its loss-making operations but faces an uncertain future after DaimlerChrysler AG, which has a 37 percent stake in it, pulled the plug on a multi-billion-dollar refunding last month.

The Japanese automaker has been working with other big shareholders -- trading house Mitsubishi Corp., machinery maker Mitsubishi Heavy Industries, and the Bank of Tokyo-Mitsubishi (BTM) -- to secure funding.

Under the new plan, the three companies would take 40 billion yen of newly issued preferred shares each, while other Mitsubishi group companies will take more than a combined 30 billion yen.

As a result, the Mitsubishi group, which holds a combined 32 percent in the automaker, will account for more than 150 billion yen of the capital infusion, the sources said.

In addition, BTM and Mitsubishi Trust & Banking Corp will agree to swap up to 200 billion yen of debt into preferred shares, the sources said.

The Mitsubishi group is also negotiating with Tokyo-based Phoenix Capital and other private funds for a capital infusion, they said. Phoenix has close ties with Mitsubishi Tokyo Financial Group, which owns BTM and Mitsubishi Trust & Banking.

Local media have said Phoenix Capital could take around 200 billion yen in common shares, which, unlike preferred stock, carry voting rights. That would make it Mitsubishi Motors' biggest shareholder.

As part of the restructuring, Mitsubishi Motors will close one of its under-utilized domestic plants, transferring production of the Pajero sport utility in Gifu prefecture to the Okayama plant, also in central Japan, the sources said.

The Yomiuri Shimbun newspaper said on Monday that Mitsubishi Motors would slash 9,000 jobs, or about 20 percent of its workforce.

The headcount will fall at MMC plants in North America and its headquarters in Japan. The company's Australian plant will be closed in a second round of restructuring, with 3,200 jobs going, the paper said.

Australia's Federal Industry Minister Ian Macfarlane and South Australian Treasurer Kevin Foley will meet Mitsubishi executives later on Monday to discuss the restructuring plan, an MMC spokesman said.

To reduce vehicle development costs, Mitsubishi Motors will also discontinue some models other than its core small cars and sport utility vehicles, the sources said.

Through this and other measures, the auto maker aims to return to the black by the business year ending in March 2006, the sources said.

Dogged by more than $10 billion of interest-bearing debt, Mitsubishi Motors expects a net loss of 72 billion yen for the year that ended in March after its easy credit policy in the United States backfired.

It plans to gain approval of the new business plan from DaimlerChrysler this week and announce the outline on Friday, along with its earnings results.

 

"To reduce vehicle development costs, Mitsubishi Motors will also discontinue some models other than its core small cars and sport utility vehicles, the sources said. "

Joy. I can't wait to here details on this..

 

Yeah, I am curious too. I doubt it will be anything that we see in the US. Likely they will cut some of the many models they have in Japan.

 

I read that to mean that they will be doing some platform engineering, like Nissan did. I would also expect the 4g63 to go too...I wouldn't think that the next Evo, if there is one, would be built around the 4g63. With technology increases the 4g63 is prolly not too efficient to build compared to the Mivics of the world...

 

Yeah, my guess is that you are completely wrong. Mitsubishi is already the king of platform engineering. They have been doing it since the '80's.

Nissan had to dump the SR20 and RB series not because they were not profittable but because they polluted too much, that decision was made before the take over by Renault.

The Mivics are far more complex and complicated to build than the 4G63. The heads on the variable valve timing engines are expensive to develop and build. The 4G63 has been around for a long time and they have already sunk the money into developing it.