Mitsubishi's Makeover Gives Sales a Boost
Mitsubishi adapted to the crossover craze and it seems to be paying off.
Not too long ago, Mitsubishi could have been considered sinking ship. Sales were slow due to an uncompetitive lineup, but the Japanese brand has turned that around in the last year.
In the fiscal year that ended on March 31, Mitsubishi reported a global operating profit of $924.5 million and a net income of $1 billion, which is a big turnaround compared to a net loss of $1.87 billion in the previous fiscal year, notes Automotive News.
In the same time period, revenue is up 15 percent to $20.6 billion and worldwide unit sales jumped 19 percent to 1.1 million vehicles. That still positions Mitsubishi as a relatively small car company, but it’s one that’s growing fast.
These huge jumps in profits and sales are thanks to a changing lineup dominated by crossovers. Mitsubishi is offering recently revised versions of the Outlander, Outlander Sport, and the all-new Eclipse Cross. Mitsubishi also sells the Outlander PHEV which is one of the only plug-in hybrid crossovers on the market. Mitsubishi recognized that crossovers are what’s popular right now and the brand is adapting accordingly.
This success comes after Renault-Nissan bought a controlling stake in Mitsubishi in late 2016.
“We were able to make a good start, achieving the targets which were even revised upward during the fiscal year,” said Mitsubishi CEO Osamu Masuko in a statement.
Mitsubishi plans on continuing its momentum with another 12 percent increase in profit and 14 percent increase in global retail sales in the current fiscal year ending March 31, 2019.