why are so many dealers closing?
I would like to know this too... is it just a matter of them not making money???
This is gonna do nothing but hurt Mitsubishi's sales. People aren't gonna want to buy a car if there are no dealers to service them at.
I really like my EVO X... but Mitsu as a company in Canada seems pretty weak.
This is gonna do nothing but hurt Mitsubishi's sales. People aren't gonna want to buy a car if there are no dealers to service them at.
I really like my EVO X... but Mitsu as a company in Canada seems pretty weak.
From what I have seen and heard, many Mits dealerships are shutting down due to the brand and car. Alot of groups or people who took on Mits dealerships were coming from failing Saturn and Pontiac stores. These stores were at one point selling 80-100 cars a month and had the building and staff to suit these type of sales. Not only that, these cars also had between 5000 and 8000 profit on each sale.
When these companies began to fail, many people got early warning and got out of the stores. With the big companies usually established in an auto mall type area, Mitsubishi was an obvious choice - growing, potential, increase in year over year sales.
With a huge sales staff and many overhead costs (reception, accounting, etc), the cost vs benefit was huge in the sales department with cars that average 1000-2000 profit per unit (less than 7% vs close to 20%). The main problem is not here but is in service. These stores were managed to make big money in service department. Easy when you service cars that have frequent problems and little warranty coverage, but the new Mitsubishis required little or no major service and had everything covered under warranty.
http://www.theglobeandmail.com/repor...rticle1507665/
Dealerships that opened on old business models haven't and won't survive. Ones that have been more innovative and have operated on leaner budgets and customer service as a means of business have survived.
The other excuse could be the competition in the GTA. In January 2011 there were over 13 dealerships in a 150 km radius. Just in York region, there were 5 dealerships at one time. This is just bad planning and business. Head office should be blamed for this
When these companies began to fail, many people got early warning and got out of the stores. With the big companies usually established in an auto mall type area, Mitsubishi was an obvious choice - growing, potential, increase in year over year sales.
With a huge sales staff and many overhead costs (reception, accounting, etc), the cost vs benefit was huge in the sales department with cars that average 1000-2000 profit per unit (less than 7% vs close to 20%). The main problem is not here but is in service. These stores were managed to make big money in service department. Easy when you service cars that have frequent problems and little warranty coverage, but the new Mitsubishis required little or no major service and had everything covered under warranty.
http://www.theglobeandmail.com/repor...rticle1507665/
Dealerships that opened on old business models haven't and won't survive. Ones that have been more innovative and have operated on leaner budgets and customer service as a means of business have survived.
The other excuse could be the competition in the GTA. In January 2011 there were over 13 dealerships in a 150 km radius. Just in York region, there were 5 dealerships at one time. This is just bad planning and business. Head office should be blamed for this
Simply Put, We cant keep up....
Mitsubishi Is a Very good brand...Just not here in Canada.
As an Employee @ a Mitsu Dealer....Some of the people who come in here are basically not educated enough.
They think that Hyundai and Kia are at a higher Level than Mitsu... Whereas alot of us view Hyundai, Kia, Suzuki,Daewoo as bottom of the barrel car options.
The MAIN problem stems from Mitsubishi Canada.
Our Programs Suck, Our Lease Rates are atrocious, Lancers make too much "noise" due to removal of insulation, Resale of any Mitsubishi other than Ralliart,Evolution, Outlander XLS, is a basic humiliating defeat. I saw the other day a 2009 Lancer SE CVT with 30k going for 11,900.... 11,900!!!!!! Some of you might be like DAMN! Thats a good deal! when in respect...It`s terrible! Mazda 3`s hold their values around 14-18k after they come off leases or finances.
Mitsubishi Canada has Ruined themselves again... We lose customers EVERYDAY to Mazda, and Hyundai, Not to mention The amount of people who walk into a Mitsu dealer are slim.
Also because People think so little of Mitsu, Discounts are ridiculous.... Lancers DO NOT have much mark up...So when a customer laughs at me and thinks that 800 off a car with 1000 mark up is not good enough...Therein lies the answer...Dealers are not making enough.
Now This is different elsewhere....
In the GTA not many dealers can stay afloat.. Only a select few can...
But drive out to Quebec, Alberta,B.C. etc etc... and you`ll see Lancers marked up 2000 over the MSRP! And they can do this and People BUY THE CARS!
Example
Customer bought GSR from me, I had to dealer trade to find one, Calgary had one, The manager said sure we could have it but we would have to pay MSRP not Dealer List, Freight, PDI, and ontop of that an additional 4000...
Ridiculous I know...
But they can sell it for that much because theyre the only dealer in the town or within driving distance, and they WILL sell an EVO for OVER list just because they can!
Having so many Dealers in the GTA does not help at all for the community because everyone walks, and shops... Instead of just going on car cost canada and bringing it into a dealer and saying "I want to buy this car for this price".
Mitsubishi Is a Very good brand...Just not here in Canada.
As an Employee @ a Mitsu Dealer....Some of the people who come in here are basically not educated enough.
They think that Hyundai and Kia are at a higher Level than Mitsu... Whereas alot of us view Hyundai, Kia, Suzuki,Daewoo as bottom of the barrel car options.
The MAIN problem stems from Mitsubishi Canada.
Our Programs Suck, Our Lease Rates are atrocious, Lancers make too much "noise" due to removal of insulation, Resale of any Mitsubishi other than Ralliart,Evolution, Outlander XLS, is a basic humiliating defeat. I saw the other day a 2009 Lancer SE CVT with 30k going for 11,900.... 11,900!!!!!! Some of you might be like DAMN! Thats a good deal! when in respect...It`s terrible! Mazda 3`s hold their values around 14-18k after they come off leases or finances.
Mitsubishi Canada has Ruined themselves again... We lose customers EVERYDAY to Mazda, and Hyundai, Not to mention The amount of people who walk into a Mitsu dealer are slim.
Also because People think so little of Mitsu, Discounts are ridiculous.... Lancers DO NOT have much mark up...So when a customer laughs at me and thinks that 800 off a car with 1000 mark up is not good enough...Therein lies the answer...Dealers are not making enough.
Now This is different elsewhere....
In the GTA not many dealers can stay afloat.. Only a select few can...
But drive out to Quebec, Alberta,B.C. etc etc... and you`ll see Lancers marked up 2000 over the MSRP! And they can do this and People BUY THE CARS!
Example
Customer bought GSR from me, I had to dealer trade to find one, Calgary had one, The manager said sure we could have it but we would have to pay MSRP not Dealer List, Freight, PDI, and ontop of that an additional 4000...
Ridiculous I know...
But they can sell it for that much because theyre the only dealer in the town or within driving distance, and they WILL sell an EVO for OVER list just because they can!
Having so many Dealers in the GTA does not help at all for the community because everyone walks, and shops... Instead of just going on car cost canada and bringing it into a dealer and saying "I want to buy this car for this price".
In my personal opinion it is because other car companies are doing it right and moving forward, while Mitsubishi is putting all it's chips on one hand (miev) and not focusing on the cars that made them a well known brand in the first place (Evo, Eclipse, Galant, etc.). How many sales have they lost to Subaru and Hyundai over the past few years?
It seems like every company is moving forward except Mitsubishi as hard as it is for me to say. Hyundai is just about ready to take over Honda in sales and they are still coming out with fresh new car designs that don't purely focus on electric power sources and going green. I probably see around 1-2 Mitsubishi's a day tops and that's on a good day!
It seems like every company is moving forward except Mitsubishi as hard as it is for me to say. Hyundai is just about ready to take over Honda in sales and they are still coming out with fresh new car designs that don't purely focus on electric power sources and going green. I probably see around 1-2 Mitsubishi's a day tops and that's on a good day!
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To be fair, I have spoken with Japan Management and they say this is a transition period for Mitsubishi. They are revamping the lineup of cars for 2013 - 2014 and will intoduce cars that are more in line with what the market is demanding. Time will tell if this will pay off. But they are confident that sales with continue to rise and the company will stablize and grow in the North American marketplace.
The creation of the RVR / OUTLANDER SPORT was a big eye opener for Mitsubishi. While they knew small cars were very popular in Europe, they understand that this mindset is starting to embed itself in America. Resources have been shifted in this quadrant and production of new cars are already underway.
The creation of the RVR / OUTLANDER SPORT was a big eye opener for Mitsubishi. While they knew small cars were very popular in Europe, they understand that this mindset is starting to embed itself in America. Resources have been shifted in this quadrant and production of new cars are already underway.
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