Mitsubishi reportedly plans to cease European shipments of SUVs as early as September, in an sudden transfer sure to harm its sellers on the continent.
Final month, the Japanese carmaker announced it would wind down operations in Europe to focus its assets on southeast Asia, however didn’t present a time-frame. The corporate stated was it was “freezing the introduction of recent merchandise” to Europe.
Now, it seems that the plan is much more radical and contains the discontinuation of some current fashions as nicely. AutoNews Europe cites an nameless supply with shut ties to the corporate as saying that Mitsubishi will cease delivery its three SUVs to European markets beginning subsequent month.
The fashions embrace the Outlander plug-in hybrid, Europe’s best-selling PHEV, the ASX compact SUV and the Eclipse Cross coupe SUV. Collectively, the three SUVs made up 64 % of Mitsubishi’s 53,242 passenger automobile gross sales within the first six months of 2020.
The supply additionally stated that imports of the Space Star/Mirage subcompact hatchback, Mitsubishi’s best-seller in Europe, and L200 pickup are anticipated to proceed till the tip of 2021. If correct, the choice places Mitsubishi’s viability in Europe into query, to not point out the native model’s sellers.
“With out the SUVs there isn’t any enterprise. Sellers can’t survive on the small automobile and L200,” the supply added. There have to be a rational rationalization for Mitsubishi’s resolution, proper? Properly, in accordance with the unnamed insider, halting imports of key fashions permits the corporate to keep away from re-engineering them to adjust to new emissions rules.
Unsurprisingly, Mitsubishi’s European sellers are offended on the resolution to halt new merchandise for the area, particularly for the reason that Outlander PHEV advantages from subsidies for low-emissions automobiles in lots of nations throughout Europe. Including insult to damage is the truth that sellers will now have to supply massive low cost to maneuver current inventory.
The supply added that Mitsubishi has not but mentioned compensation for sellers and importers and gave them simply three days’ discover of the July announcement that it could freeze mannequin launches. Mitsubishi Europe has not commented on the report on the time of writing.