Mitsubishi Killing Eclipse, Endeavor, And Galant
Mitsubishi will be downsizing its automotive offerings in effort to increase profits and transition to hybrids.
Mitsubishi announced today as part of their global strategy to increase profits, they will be cutting the Eclipse, Endeavor, and Galant gradually between now and 2014. Instead, they plan to offer eight hybrid and battery-powered vehicles by 2015 to off-set the expected rising fuel costs consumers are expected to experience.
Mitsubishi saw a three precent increase in sales last year and is expected to see that figure at 37 percent or 1.37 million vehicles sold by 2014.
Under the growth plan, Mitsubishi said it would aim to double its operating profit to 90 billion yen on sales of 2.5 trillion yen and triple its net profit to 45 billion ($548 million) yen by 2013/14
To reach these targets, the company said it would aim to cut procurement costs by 90 billion yen by 2013/14, including by buying more components outside Japan to counter currency headwinds. It would also cut down the number of vehicle platforms from 12 to 6 by 2015/16.
The company said that volume growth will be driven by China, Southeast Asia, Russia and Brazil, where Mitsubishi expects the upcoming "Global Small" car and other models to account for a 280,000-unit sales rise in emerging markets over the next three years. It also expects a 90,000-unit increase in sales in mature markets.
Share your favorite Eclipse/Endeavor/Galant memory below.
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