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Mitsubishi said to be in talks with Nissan for midsize sedan
Hans Greimel
Automotive News
February 6, 2015

TOKYO -- After dumping Renault as a possible partner for small- and midsize sedans, Mitsubishi has entered talks with Nissan as an alternative source for the badly needed midsize vehicle.

Nissan Motor Corp. began discussions with Mitsubishi Motor Corp. after talks with Nissan’s alliance partner Renault broke down, according to a Nissan source familiar with the situation.

An agreement would help beleaguered Mitsubishi plug a hole in a sparse U.S. lineup that is hurt by an aging compact Lancer sedan and the discontinuation of the larger midsize Galant.

Mitsubishi is prioritizing a Lancer replacement because it is a global car with demand in multiple markets, including the U.S. The large-size sedan it had been considering with Renault SA was seen mainly as an America-only offering.
Talks with Renault had focused on getting sedans from the French company’s assembly plant in Busan, South Korea. A Mitsubishi source said the company pulled the plug partly because the sudden appreciation of the Korean won against the dollar and Japanese yen undercut the plan’s profitability.
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Discussion Starter · #2 · (Edited)
After dumping Renault as a possible partner for small- and midsize sedans, Mitsubishi has entered talks with Nissan as an alternative source for the badly needed midsize vehicle.

Nissan Motor Corp. began discussions with Mitsubishi Motor Corp. after talks with Nissan’s alliance partner Renault broke down, according to a Nissan source familiar with the situation.
This is kind of worded oddly to me. I thought the Renault-Nissan Alliance was run as one company? Would Mitsu start discussions with one without the other having full knowledge or participation?

Regardless, it's a shame the rising value of the Korean won has stopped the potential domestic homologation of the Renault-Samsung SM5 from moving forward. It's an attractive (if somewhat plain) vehicle and would have been "different enough" for Mitsu's US showrooms.

If the project with Nissan moves forward, then it's likely any vehicle produced from the partnership will be much more derivative in appearance (think Suzuki Equator/Nissan Frontier).

Still, with a revised Altima supposedly around the corner, I wonder if this puts Mitsu in an idea spot to negotiate on a product? If the next/updated Altima is significantly evolved from the current version, then Mitsubishi could use the current Altima as a starting point to create their own, bespoke looking variant. Doing that would save money, allow the Mitsubishi version to look different from the next Altima (greenhouse, side-glass, etc), and possibly give them a more affordable product to push in showrooms.

The only hindrance to such a plan will be volume and capacity. Whatever Mitsubishi gets is not likely to sell in huge numbers. However, assuming Nissan builds the product domestically (and that's likely to avoid the same currency issues), it will take away factory capacity away from Nissan (which is struggling to meet it's own demand).

It'll be interesting to see what they come up with.

A Mitsubishi spokesman said plans to replace the Galant are on indefinite hold but that efforts are still underway to salvage a small-sized successor to the Lancer. Mitsubishi may end up developing the car itself. But it is also looking for partners to help it shoulder steep r&d and production costs, he said.

While he declined to confirm whether talks with Nissan have begun, he said working with the Japanese rival is “one option.”
They could obviously go it alone if they wanted to, but it would be very expensive for a product that has limited reach outside of North America.

While currency fluctuations are a concern, I wonder if they wouldn't be better served looking to Mazda, Suzuki, or even FCA for a possible product-partnership. The Mazda6 is a great sedan and seems more inline with Mitsu's own brand philosophy. Suzuki has a new mid-sized Ciaz sedan they are putting out in world markets. And, of course, FCA is now producing the new 200 (which if the Sterling Heights factory is running behind capacity could make a new model to increase efficiency).

Suzuki Ciaz/Alivio
 

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They should haggle for a 2for. Get Nissans Altima/Maxima platform and boom compact/midsize sedans galore could be produced.
Then Haggle for the Xterra/Parhfinder Platform and boom a new Montero.
Then haggle for the R35 GTR platform once the replacement comes out and produce a 3000GT that will smoke exotics for about 60K.
After all that haggling you now have a Mitsubishi model range like the 90's when the grass was greener.
Then when that is all said and done haggle for the Titan platform(BOF SUV and Pick-Up) and bada-boom you have yourself the perfect platforms for maximum US Market penetration
 

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Discussion Starter · #5 · (Edited)
What is Mitsubishi's infatuation with the USA? They should pull out until they have the cars and profits to properly penetrate the US market, otherwise it's got to be nothing but a drain on their resources.
IDK either. To me, Suzuki had a better shot of making it in the US market than Mitsubishi, but they pulled out as well.

I think part of it may have to do with the idea of "making it" in the US and the potential to make money here. I also think that it has to do with how much it would actually cost them to wind down their sales channel, their factory in Normal, Illinois, etc. When they shut down Oldsmobile, it cost GM over $1 billion to settle franchise issues, etc. Not sure how much more complicated it would be to shut down Mitsubishi, but chances are that it would be pricey.
Then Haggle for the Xterra/Parhfinder Platform and boom a new Montero.
I think they have a new Montero coming. The announcement they made recently about the "return of a legend" seems to strongly hint at that.
 
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Ok, now that I know this why would I buy a Mitsu if it would be a Nissan anyway? If Mitsu thinks Nissan is good enough to partner to make them cars, why don't I as a consumer "skip the middle man" and go straight to Nissan.
 

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Wait. Mitsubishi is still in business??? ;)
 
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What is Mitsubishi's infatuation with the USA? They should pull out until they have the cars and profits to properly penetrate the US market, otherwise it's got to be nothing but a drain on their resources.
Don't forget, they had done a very good job penetrating the market. Whether they failed to up their game when others did or whether they lost money elsewhere globally, I don't know. However, looking at Mitsu's current US models, they brought a set of knives to a gunfight.
 

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Ok, now that I know this why would I buy a Mitsu if it would be a Nissan anyway? If Mitsu thinks Nissan is good enough to partner to make them cars, why don't I as a consumer "skip the middle man" and go straight to Nissan.
go to MITS for the re 10 year warranty and "keener" pricing over the Nissan version + I assume it will be a different car and NOT a Nissan with 3 diamonds on its beak
 

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Don't forget, they had done a very good job penetrating the market. Whether they failed to up their game when others did or whether they lost money elsewhere globally, I don't know. However, looking at Mitsu's current US models, they brought a set of knives to a gunfight.
Yes, I remember quite well that they were doing quite well in the 1980's and 1990's! Then they got into the business of giving away cars and it caught up to them badly.....
 

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Mitsubishi: From the nice people who brought you the Zero.

http://abcnews.go.com/2020/story?id=124054

What is Mitsubishi's infatuation with the USA? They should pull out until they have the cars and profits to properly penetrate the US market, otherwise it's got to be nothing but a drain on their resources.
Mitsu has some deep pockets. Cars may be like a hobby of the idle rich for them. Trains and boats and planes, stuff like that:

https://www.mhi-global.com/network/index.html

Slightly deeper pockets than Suzuki methinks.

Wait. Mitsubishi is still in business??? ;)
See above.

Throwing in the towel at this point makes the most sense to me, but nope here they are...
http://www.mitsubi****oday.com/

LOL. I see the clean talkin bot took care of mitsu today. Har. :clap:

Yes, I remember quite well that they were doing quite well in the 1980's and 1990's! Then they got into the business of giving away cars and it caught up to them badly.....
I looked at a few of their cars in the 90s. If I could've made a deal on one of those wagons they sold (also under Dodge) I'd have done it.

I had a circa 2004 Galant 3.8 rental which I liked quite a bit. Sukka had some torkies and acceleration fershur. But I never bought one. Hmmmmmm.
 
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I always wonder about the driver of a Mitsubishi when I see one. Why did they think that was the car for them to buy over ANYTHING else. There is no Mitsubishi, IMHO, that is best in class. Plus they're UGLY!!
 

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I always wonder about the driver of a Mitsubishi when I see one. Why did they think that was the car for them to buy over ANYTHING else. There is no Mitsubishi, IMHO, that is best in class. Plus they're UGLY!!
compared to Toyota they stack up well and are much cheeper + WAY better warranty coverage ++ they finance anybody at least in canada
 

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The Altima is a decent offering in the segment and wouldn't be a bad place to start, but as has been suggested I wonder if other companies like Mazda would be a better option. There's not a whole lot of room left in the midsize segment within the US. For years it was mainly the Camcord, but now there's the strong selling Fusion, Altima, Sonata, and so on. This is probably part of what hurt the Passat or 6. The segment is quite full and it's increasingly difficult o find a unique "angle" from which to sell your midsize sedan. What would Mitsubishi's be, anyway? I don't say it happily but that too is something they need to ponder before putting a new sedan on sale.
 

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What is Mitsubishi's infatuation with the USA? They should pull out until they have the cars and profits to properly penetrate the US market, otherwise it's got to be nothing but a drain on their resources.
True. They should get a bit more serious about the US market.
Yes, I remember quite well that they were doing quite well in the 1980's and 1990's! Then they got into the business of giving away cars and it caught up to them badly.....
They did seem to have a pretty good run there for a while, at least in these parts anyway. I think the product sort of lost it then things started to slide for them.
 

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Mitsubishi talking with Nissan after having been rejected by Renault is comical. It would be more interesting to see them work with PSA. Or maybe, do what Mazda did and develop a new Galant that's worth talking about. It was, after all, their latest decision to eliminate the Evo, and generally decide that what the lineup needed was more boredom, by bringing the Mirage.
 

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This is kind of worded oddly to me. I thought the Renault-Nissan Alliance was run as one company? Would Mitsu start discussions with one without the other having full knowledge or participation?
I thought so as well. I suppose it's more similar to the Hyundai-Kia partnering/ownership.

Still, with a revised Altima supposedly around the corner, I wonder if this puts Mitsu in an idea spot to negotiate on a product? If the next/updated Altima is significantly evolved from the current version, then Mitsubishi could use the current Altima as a starting point to create their own, bespoke looking variant. Doing that would save money, allow the Mitsubishi version to look different from the next Altima (greenhouse, side-glass, etc), and possibly give them a more affordable product to push in showrooms.

The only hindrance to such a plan will be volume and capacity. Whatever Mitsubishi gets is not likely to sell in huge numbers. However, assuming Nissan builds the product domestically (and that's likely to avoid the same currency issues), it will take away factory capacity away from Nissan (which is struggling to meet it's own demand).
Depending how open to it Nissan is, a Mitsubishi "Altima" could give them product in several markets. The current Altima is also the new generation Teana in several markets (and replaced the Maxima-badged Teana in Australia). The previous-gen Teana was also the Renault/Samsung SM5 (SM7?), the same car Mitsubishi was talking to Renault about. Don't know how ready for the U.S. market the SM5 would've been but the Altima obviously is.

Wonder if Mitsubishi would/could tool up its Illinois plant for Nissan production?

As an aside, if Nissan were still making an Altima coupe, that would've made an ideal follow-up to what the last Eclipse had become. The Altima coupe, like the Eclipse, had a shortened length/wheelbase to the regular sedan model, so the Altima coupe was arguably more like the Eclipse than it was say, the Accord coupe.

What is Mitsubishi's infatuation with the USA? They should pull out until they have the cars and profits to properly penetrate the US market, otherwise it's got to be nothing but a drain on their resources.
Gains. Apparently something is working.
Mitsubishi posts N.A. gains while Japan, Europe struggle

Ok, now that I know this why would I buy a Mitsu if it would be a Nissan anyway? If Mitsu thinks Nissan is good enough to partner to make them cars, why don't I as a consumer "skip the middle man" and go straight to Nissan.
You'd know...not everyone would. Or you'd go for Mitsubishi's better warranty (5 yr/60k bumper-to-bumper, 10 yr/100k powertrain).

It would also make for a more literal meaning of "Nissan Altima or similar" at the Enterprise rental counter.
 
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