Mitsubishi Motors to Release Six All-New Models by 2020
After investing $5.3 billion in research and development, Mitsubishi Motors plans to release six all-new models by 2020.
This three-year plan is called “Drive for Growth” and describes Mitsubishi’s initiative to spike the company’s unit sales by 30% and increase profit margins by six% or more.
Research and development teams are looking to expand Mitsubishi’s participation in the four-wheel drive SUV and pick-up truck segments. The company will be completely redesigning five of its existing models and adding six all-new models. These will include the XPANDER and Eclipse Cross. By 2020, Mitsubishi hopes its five best-selling models will make up 70% of the company’s total sales.
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The release of Mitsubishi’s six all-new models will be staggered over the next three years, with an expected two-vehicle release each model year.
Mitsubishi Motors’ chief executive Osamu Masuko describes this as a new direction for Mitsubishi. “Drive for Growth is a new roadmap for Mitsubishi Motors,” said Masuko. “We will rebuild trust in our company as our highest priority, successfully launch new vehicles, and achieve a V-shaped financial recovery. These will be the foundations for our future sustainable growth, which will involve increased capital expenditure and product development spending.”
In an effort to increase its profit margins, Mitsubishi is more than doubling its annual capital expenditure. The company will see a 60% increase in its expenditure, reaching nearly $2 billion by the end of the 2019 fiscal year.
Mitsubishi also plans to expand its overall consumer markets in the United States, China, Japan, Oceania, and the ASEAN region.
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“This is an ambitious program to maximize our strengths in growing product segments, especially four-wheel drive,” explained Masuko. “[We will] pursue growth in markets where our brand has strong potential, particularly the ASEAN region. The growth program will also involve an efficient and disciplined operating structure as we continue to manage costs.”
Mitsubishi also plans to expand on its plug-in hybrid electric vehicles (PHEV) over the next few years. Mitsubishi sees Drive for Growth as an opportunity to shift the company’s initiatives in a whole new way.
Masuko concluded: “We are refreshing our product line-up, investing in R&D and targeting core market growth. Drive for Growth will enable us to continue the transformation of the company over the next three years.”