Chrysler, Mitsubishi plans in limbo

[PontiacJ8]

NASHVILLE, Tenn. -- The Chrysler group's tentative plans to produce a minivan and perhaps other vehicles for Mitsubishi Motors Corp. are on hold.

Discussions were interrupted after DaimlerChrysler AG's board decided in April not to invest more in financially troubled Mitsubishi. Chrysler executives are tight-lipped about their relationship with Mitsubishi, but the partnership is being scaled back.

Chrysler CEO Dieter Zetsche said discussions about providing vehicles to Mitsubishi "obviously were interrupted, and we are not back."

He did not say if they will resume. Mitsubishi has "new management, and that new management has to come to grip with a lot of things," he said at a press event here. "The first thing, of course, is to assure the basic restructuring, the financing" of the company.

But Chrysler and Mitsubishi are collaborating on a pickup for U.S. Mitsubishi dealers.

The project was locked in before DaimlerChrysler decided not to invest more in Mitsubishi.

Chrysler will start producing the pickup next year. It will be a reworked Dodge Dakota.

Also, programs to use Mitsubishi's redesigned Lancer platform for the next-generation Dodge Neon and Stratus and Chrysler Sebring and PT Cruiser will continue.

Full Story HERE

[Swahili]

Chrysler is really starting to get on their feet and get walking again, I agree with them not to keep investing money into a company that could pull them back down again. If that picture is of a concept pick up truck for Mitsu, take it back. It looks awful.

[ByTheLake]

Not much surprise here ... Mistubishi is sliding badly. Chrysler's decision is difficult but good.

As more brands enter the US market, something has to give. Let the weaker brands die a natural death. If the market selects Mistubishi for extinction, so be it.

Seems like Mistubishi's big plans are to get copies of DCX products anyway. Not much of a recovery plan.

[vanshmack]

Originally posted by ByTheLake@Aug 5 2004, 05:25 PM
Not much surprise here ... Mistubishi is sliding badly. Chrysler's decision is difficult but good.

As more brands enter the US market, something has to give. Let the weaker brands die a natural death. If the market selects Mistubishi for extinction, so be it.

Seems like Mistubishi's big plans are to get copies of DCX products anyway. Not much of a recovery plan.

Very Darwin-esque of you to say!

[SUPERBADD75]

Seems like Mistubishi's big plans are to get copies of DCX products anyway. Not much of a recovery plan.

their plans are not to get copies of Chrysler products. if you read the story, and study what is going on now with them, you'll see that Chrysler uses more of Mitsu's product than Mitsu does of Chrysler's.

programs to use Mitsubishi's redesigned Lancer platform for the next-generation Dodge Neon and Stratus and Chrysler Sebring and PT Cruiser will continue.

this is what's happening now. Chrysler uses Mitsubishi platforms for the Sebring and Stratus now. they are only going to use more in the future, it seems. Mitsu is getting a truck from Dodge. what else? not too much, it appears, and Chrysler isn't just using Mitsubishi parts, but Mercedes stuff too. it's platform sharing on a worldwide scale, just like GM. the difference is that Mitsubishi is having serious issues right now.

[PontiacDriver123]

If theres no Mitsu. that means they won't produce that S.U.T. :grenade:

[stewacide]

Originally posted by PontiacDriver123@Aug 6 2004, 01:54 AM
If theres no Mitsu. that means they won't produce that S.U.T. :grenade:

Honda's making the SUT.

[Hudson]

Originally posted by SUPERBADD75@Aug 5 2004, 08:03 PM

this is what's happening now. Chrysler uses Mitsubishi platforms for the Sebring and Stratus now. they are only going to use more in the future, it seems.

Actually, only the low-volume Sebring coupe and Stratus coupe use Mitsubishi platforms. The sedans and convertible use Chrysler a platform. The next generation Neon, PT Cruiser, Sebring/Stratus sedan, and Sebring convertible will go to the new Mitsubishi platform...but I don't expect that to happen long-term if someone else jumps in to help Mitsubishi (which I DO expect to happen). As long as DaimlerChrysler holds a significant portion of Mitsubishi, they'll probably share parts.

[thecarguy]

Part of Mitsu's problem is that sales are falling hard and they have no new products hitting the market. They have the all-new Eclipse coming out next spring, but that won't be enough to stop the sales and market share slide that they are experiencing. I also don't believe that the Mitsu (Dakota-based) pickup will help either, as this will only be a rebadge and will not offer all of the engine/trans. options that are available of the Dodge variant.

Perhaps I am missing something, but it will take a considerable amount more to save Mitsu in North America.

[tgagneguam]

Originally posted by thecarguy@Aug 6 2004, 03:53 PM
Part of Mitsu's problem is that sales are falling hard and they have no new products hitting the market...

I think in some ways Mitsubishi's near-term sliding sales are a good thing. Their sales were inflated in part by allowing customers with poor credit to purchase new vehicles. My understanding of more recent efforts on the part of Mitsubishi NA is that they've tightened their lending practices - in the end, it will mean lending to fewer persons with better credit. That's a step in the right direction, and it's a move that's long overdue.

Of course, longer term, they desperately need new product, and I agree with those who have posted concerns about a dearth of exciting cars and trucks in Mitsubishi's product pipeline. I am not a fan of MMC, so I'm not praying for that to change, either.

As far as another automaker rescuing Mitsubishi, I imagine that help will come more in the form of a fellow kereitsu member like The Bank of Tokyo-Mistubishi, Ltd. (HELP MMC) than it will come in the form of another automaker. MMC seems to be more of a liability than an asset - much like Fiat is a liability to GM.

Of course, I'm not clairvoyant, and we could see a Renault-Nissan-Carlos Ghosn alliance, but that seems unlikely to me.

[Darc Requiem]

Hmmm...if that pic is Mitsu's new truck then they are in more trouble than anyone thought. That thing is Pontiac Aztek ugly. Jeez...and I thought the Element was ugly....and it is.

Darc Requiem

[Hudson]

tqaqnequam:

Good point on the sales-bubble. They were targeting young buyers who typically have worse credit than older, more established buyers...and it was a problem.

While banks and suppliers will help out Mitsubishi (they're not going anywhere anytime soon), another vehicle manufacturer could find Mitsubishi to have technical expertise and market penetration that they would desire. Someone like Hyundai of South Korea or Proton of Malaysia. Both companies have ties to Mitsubishi and could use access to markets to their advantage. Especially when it comes to Proton, Mitsubishi's engineering would be quite beneficial.

[thecarguy]

Darc,

That is a concept, which I am sure that we will never see making it into production.

tgag,

Can Mitsubishi continue producing cars in North America, if nobody is buying? I think that we might find out soon. I understand what you are saying about tightening up their credit standards, but their sales are diving HARD. They were down some 50%, give or take, last month. Yikes! Wake me up when its over.

[tgagneguam]

Originally posted by Hudson@Aug 6 2004, 05:19 PM
While banks and suppliers will help out Mitsubishi (they're not going anywhere anytime soon), another vehicle manufacturer could find Mitsubishi to have technical expertise and market penetration that they would desire. Someone like Hyundai of South Korea or Proton of Malaysia. Both companies have ties to Mitsubishi and could use access to markets to their advantage. Especially when it comes to Proton, Mitsubishi's engineering would be quite beneficial.

Uh-huh, which is why I wouldn't count anything out. After all, I was perplexed by Renault's courting Nissan several years back; I was doubtful that that partnership would produce anything. Clearly, I was wrong.

As you well know, automobiles represent an amazingly capital-intensive industry, and buying a billion stake in MMC is risky. Those with the cash seem to already possess the expertise - they have little to benefit from MMC. I believe Hyundai finds itself in a position to manage its destiny independently; I may be a bit senile cognitively, but I recall reading that Hyundai was following DCX's move to reduce its exposure to MMC. Now more than ever, Hyundai seems to be able to press its advantages singularly to the world.

Those who could benefit from MMC's engineering expertise (Proton) to my knowledge lack the cash to entice MMC. Then again, I'm not yet familiar enough with Proton's balance sheet (or any other like-minded company's cash position), so again, I suppose anything's possible.

I've had the same thoughts about MMC's tanking sales in the USA, thecarguy, which is why I believe that they need fresh product fast. I have a domestic bias, for sure, but I can appreciate fine foreign workmanship (there are a one or two Lexus models that I find particularly appealing, and I generally like Bangle's work), but I have to say that after seeing MMC's concept truck in NY this year, they need to be doing a whole lot more to change their USA fortunes.

I believe at minimum MMC's relatively deep-pocketed kereitsu will maintain life-support until MMC can get back on track. However, I won't be running out to purchase MMC stock.

[akumaknight]

I think MMC should target performance oriented people and cars. Bring back the 3000GT, market the Evo more aggressivly, get into drifting and other major racing events. Be specialty at going fast. (Honestly who here wouldent take a 3000GT VR-4?)