Mitsubishi's Dealers Urge Company as Sales Slow Down | Carscoops

      Mitsubishi's dealers are urging the company to take action to maintain their engagement in selling new vehicles.

      Fifteen hours ago, it was reported that Mitsubishi's dealers have reached out to company executives, emphasizing the need for change.

      The dealers are finding it challenging to sell cars from an outdated lineup as costs continue to rise.

      Mitsubishi’s North American CEO claims that the company is open to feedback and is making adjustments.

      Currently, there is a lack of good news from Mitsubishi, which seems to be concentrating on its outdated range of crossover SUVs and relying on its partnership with the Renault-Nissan alliance for rebadged models. There were hopes that the proposed Nissan-Honda merger might bring about improvements, but with that plan now abandoned, U.S. dealers are becoming increasingly frustrated.

      Several issues are contributing to the situation. The outdated lineup is a significant factor, with models like the Outlander Sport dating back to 2011 and the last redesign of the Eclipse Cross occurring in 2021. Additionally, stocks of the discontinued subcompact Mirage—previously the brand's second-best seller—are expected to be depleted by summer, with no replacement anticipated for the U.S. market.

      Pricing pressures have risen along with dealer frustrations. Dealers are making their dissatisfaction known by writing to Mitsubishi Motors North America CEO Mark Chaffin and Mitsubishi Motors CEO Takao Kato, stating that "swift action is needed to keep your dealer body engaged in selling new vehicles," as per a letter reviewed by Auto News.

      Reports from dealers within the National Automobile Dealers Association’s Mitsubishi Group indicate that profits are declining. In 2023, average dealer profit as a percentage of sales was 2.2 percent, which plummeted to just 0.92 percent in 2024. In the Midwest, it is noted that four out of 15 Mitsubishi dealerships closed within a year, with one dealership reporting losses of $80,000 monthly.

      Alongside the aging lineup, prices are increasing. While the Outlander received a slight refresh for 2025, it also saw a $1,250 price increase. Data from Cox Automotive shows that over the past four years, the average price of a new Mitsubishi has surged by 22 percent, reaching $31,338 last year. Simultaneously, incentives have decreased, with the brand spending 26 percent less during the same timeframe.

      "Mitsubishi has made it hard to profit on new cars," said an anonymous retailer to Automotive News. This individual mentioned that each of their stores lost $1 million last year and noted that customers rarely come in wanting to purchase a Mitsubishi that isn't the Outlander.

      There might be some hope for frustrated dealers, as a new range of products is projected for 2026, including an all-new EV for North America debuting next year. However, dealers still feel disadvantaged compared to brands like Toyota, Hyundai, and Kia, which currently offer a wider variety of choices.

      Mark Chaffin, Mitsubishi's North American CEO, asserts that the brand is receptive to feedback and is taking steps to address these issues. The company is contemplating providing more dealer cash to facilitate sales, and in the last quarter of 2024, Mitsubishi reevaluated the dealer margin structure to alleviate higher floorplan costs, introduced trade-in assistance rebates, and increased volume bonus payments while reducing monthly sales goals.

      But will these measures be sufficient? There's a risk that Mitsubishi's dealers may be compelled to concentrate on used car sales. With an influx of nearly new fleet vehicles returning to dealerships and the current lineup's lackluster appeal, it's anticipated that dealerships may have to rely on heavily discounted used cars for survival.