Withdrawal from Europe, concentration of resources and manpower in the Asian market and re-launch of the brand, these were the cornerstones of Mitsubishi’s multi-stage efficiency program a few months ago, more specifically during the month of July when the European continent was abandoned. In recent days, however, other voices have been heard pointing to the Japanese diamond, which has apparently decided to reconsider its steps, after Cherno-Nissan, the controlling owner of Mitsubishi Motors, put heavy pressure on brand executives to halt the sale and return to the negotiating table.
Mitsubishi’s new strategy, known in the industry under the slogan “Small but Beautiful”, embodies an economic concept whereby it will be possible to reduce overall costs by 20% within two years and improve the operating balance by reducing businesses with relatively small revenues. One of the clauses in the plan is for them to leave Europe as stated, but as it stands now it may be repealed. According to Financial Times reports, Mitsubishi will transfer part of its vehicle production to Renault-owned factories located in France. The publications also indicate that these moves are already in progress and that a tentative agreement between Renault-Nissan and Mitsubishi for the implementation of the plan has in fact been drawn up. Luca Di Mao, Renault CEO said last month in this regard: “We have the operating space. The platform and the factories. ”
Mitsubishi’s situation in Europe is very bad. On the one hand, the Mitsubishi Outlander has held it with its head above water almost alone and recently Launched in a new and promising generation, And on the other hand it has been over a decade that its market share in Europe hovers around only 1% with 120,000 dedications in 2019; Over the past decade it has sold a manufacturing plant set up in the Netherlands and the previous year suffered a painful blow with the death of chairman Osamo Mosoko.
There are quite a few opponents of this initiative among both sides ahead of the decision behind closed doors tomorrow or Friday. Mitsubishi is making claims that it fears the political involvement of all sorts of government officials in France within the brand’s business, given the fact that the country holds a 15% stake in Renault. At the same time, as the days go by, Mitsubishi’s fragile status does not improve on the continent. Continuing sales in Europe may be the right move, at least for now, and may even heal disputes between the three companies after a particularly tumultuous year.