The Evo in America will more likely die since it's a niche market car. I don't think people infer Evo will be dead all around the world.

Hell, look at the FTO . . . you can't get any more niche market car.


"I guess D/C is playing hardball and wants the shares of mitsu to tank so they can buy more shares for less money."

That's a dangerous game. Look at WorldCom when their stock value dropped below 1 buck a share . . . Mitsu has been in red ink for what about 5 yrs, besides creative accounting.

 

Profitable or not the EVO represents a VERY small market share for Mitsubishi Motors...the EVO is not going to save Mitsubishi Motors.

Winston

 

Well, look at this . . . what if fellow Japanese automaker like Toyo or Honda step up the plate and buy a piece of mitsu? Mitsu has enough tried and true technology . . . does it warrant enough desire to take on red ink?

 

Of course not, but they would never dump a profitable car. You are not actually suggesting that Mitsu is going to go down? There is no way that Mitsu Industries or the Japanese government would let that happen.

 

I dont know what "creative accounting" you are talking about, but Mitsu has been deep in the black for several years before this. In fact last year it had its highest net profit ever.

Yes, the 0-0-0 is gonna hurt them, but it is short term. The DCAG pull out is because of a coup against DCAG's leadership for their decrease in profits, it is not because they thought that Mitsu was unprofitable. In reality this is a much more major blow for DCAG because it is killing there access to Japan and Asia.

Remember, that to sell news there has to be some dire circumstance or some crisis. And if a real crisis doesn't exist they have to make one.

The Anti-Chicken-Little.

 

Auto manufactures that are not in trouble have discussed droping niche models from there lineup...even if it is profitable, let alone a company that needs to be restructured.

Mitsubishi Motors is in a lot of finacial trouble...trouble that it's parent company Heavy Industries must absorb...I hope that Mitsubishi continues to sell and market the EVO line but more importantly I hope Mitsubishi continues to sell cars here in the US.

Remember what happen to Isuzu...no more cars, just trucks.

Winston

 

When I have bought my Mitsu in 99, Mitsu was already in red ink in American markets. It wasn't until 00-O2 with the 3g eclipse and later Lancer balloned their books to black ink. Then a year later, there was an article after the resignation (don't remember if it was forced or not) of the head of Mitsu America . . . the 0-0-0 created "false" or "inflated" profits for 1.5 yrs. I will try to look for the article.



http://news.yahoo.com/news?tmpl=stor..._mitsubishi_dc

The 3 major mitsu firms are just too small to bail Mitsu Auto by themselves w/o outside help.


"Shares in Mitsubishi Heavy, Japan's largest heavy machinery manufacturer, trading house Mitsubishi Corp and Mitsubishi Tokyo Financial Group, which own a combined 23 percent of the auto maker, all sank."

How long can the bleeding prolong the misery of Mitsu franchise? IF DC is creating a "the sky is falling", it's going to take other Mitsu franchise along for the ride.

 

Eclipse is just a another kink in the production line - extra tooling, stamping, low volume and trim, etc. Kill it and you save tons of money - remember, each dollar saved goes directly to the bottom line, vs only a tiny fraction (2.1% in 2002/2003) of sales dollar.

Yes, lets look into the profitability of the EVO shall we? 6000 cars per year at an extremely liberal 10% GM, ie $18,000,000 in profit. Don't let all those zeros fool you - sales of EVO are only 0.55% of their total $32,415,400,000 sales, in other words a pimple on elephant's nuts and hardly enough for CFO to give it a first, never mind a second thought to cast it aside if there is an opportunity to save money by doing so.

The amount of capital and expenses involved in keeping such a small volume production alive is hardly justifyable (and goes against the 18 with multitude of zeros) when you look for cost-cutting measures. Something like an EVO is a loss-leader that a Company in the black would keep about as an image booster but that would be the first to go when things go sour.

And I am not speculating, I am applying common business sense and drawing conclusions.

 

Sucks for anyone needing warranty work.. I can only imagine how tight and difficult it's going to be now.. If they are going under, would they really care how you are treated? Probably not, they are just trying to save every last bit to reduce the growing red and will surely do that at the expense of a customer.. If they are going away, what would they care, they aren't looking for repeat buyers at that point..

I sure hope they reslove this and have some good news next week on the 30th.. Or else it could reduce across the board Mitsubishi customer treatment..

I hope Evo's don't have any need for warranty work.. Ever try to get help at a store that's closing down..

 

I would love to here about a profitable niche car that ever been cut before the end of its production cycle...

Please tell me just one.

 

I'm sorry you are just wrong. Most normal niche cars are either not profittable or only slightly profittable. The Evo is far more profittable than any other niche car available. The engine is older than some of the members of this board. The return on investmetn has got to be amazing by this point.

For the Evo, Mitsu MAKES money, NET profit.

Also you completely contradict yourself. By your theory they should dump the Gallant and any other car that they are not making a profit on RIGHT NOW. The point is that if you are getting more out than you are putting in you will not cut that car from the line up. The Evo is the ultimate halo car, it draws attention to Mitsu and their lineup AND they make money on it.

The Investment to Profit ratio for the Evo is in the direction of profit by a large margin. You are just plan wrong on this. If they made just ONE Evo a year and the cost into the car was less than what the sale price of the car and the car sells they still have a net profit and wouldn't nix the car.

You are completely speculating and your conclusions make zippy sense. Sorry.

- The-Anti-Chicken-Little

 

It would be a major blow to the entire community and similarly to the Daewoo owners our cars' resale value would plummet. However, looking at Mitsubishi as a brand of investment they are largely an untapped commodity here in the US and abroad. Mitsu's core audience is one which auto makers here in America have been seeking for a while. As for a Japanese corporation bailing them out other then Mitsu's parent company I find that highly unlikely. An interesting possibility would be GM who continues to struggle in grasping hold of the younger market although that prob wouldn't happen either.

 

Also 6000 Evos worldwide is not right.

 

Mitsu is in real trouble here guys...try to sugar-coat it all you want. My hope is they will continue to sell cars here in the US, but that is doubtful I think now. Car companies fail, and they do not come back from the dead...I hope they can get out of this.

 

Also, under the assumption that our EVO is assembled at Ralliart in Japan, they are simply utilizing a present facility with limited production capability to make a more profitable US version of the same car they sale domestically and in Europe. No reason to nix the EVO in the US.