Mitsubishi 380 2008 News

The car, first produced in 2005, was seen as a measure of whether the plant could produce profitable vehicles, however, bad timing and poor export figures led to unsatisfactory sales results. The V6 four-door 380 was produced as a replacement for the Mitsubishi Magna. At the time of the car's release, car industry experts and economists claimed the success of the 380 would determine the outcome of the company's future in Australia. Australian Institute for Social Research executive director John Spoehr said the 380 was well designed and built - $600 million was spent developing the vehicle - but rising petrol prices and poor exports crippled sales. “Mitsubishi placed a great deal of importance on the 380 as a transition to a more secure future for the Adelaide plant,” he said. “The difficulty for these things is the lead time for establishing a new model is so long that circumstances changed by the time the 380 came on to the market. “Large cars at a time of rising petrol prices were becoming increasingly unpopular in the Australian market.” Mitsubishi sales grew by 20 per cent last year but the 380 bucked the trend selling only 10,942 units, a drop of 11.9 per cent over its 2006 tally. Mr Spoehr said the Japanese company needed to see strong continued sales growth of the 380 to have its “faith” restored in building cars in Australia. “Not being able to secure sufficient export volumes really made it impossible for the 380 to be the leader it needed to restore the faith in the parent company,” he said.

The countdown has begun and decisions must be made soon on the mid-life update and upgrade of the 380, and any car that will follow it into production at the Mitsubishi Motors Australia factory in Adelaide. Company chief Rob McEniry has just been in Japan for an extensive series of meetings, including planning work on the 380, and expects to have the car's future clarified by head office soon. He is reluctant to talk about a likely replacement for the 380, which is struggling against its big-six rivals the Holden Commodore, Ford Falcon and Toyota Aurion, but admits the car's future will be determined next month or early next year. “As I said last year, at the end of 2007 Mitsubishi would be going through its normal model cycle and mid-term planning phase and that's when we'd look at replacement or potentials for the 380, and that's exactly where we are,” McEniry says. Mitsubishi remains committed to local manufacturing and has several options for the future including a replacement for the 380 based on the Concept-ZT, and possibly a smaller car. However, details are yet to be assessed. Although the Mitsubishi 380 sales results are well below original predictions, the Adelaide-based vehicle operation has underpinned its future with strong sales of its imported range. The Triton, Outlander and Pajero off-roaders are popular and the just-launched two-litre Lancer sedan is expected to gain a strong following based on its $20,990 price and standard inclusion of electronic stability control. Mitsubishi plans to fit stability control to the 380 by mid next year. Despite the struggling 380 sales, Mitsubishi executives describe it as “approaching the segment average” for private sales. Results of only 1000 a month are putting pressure on the car's viability and a large portion of the car's sales have been to fleets. However, McEniry denies Mitsubishi is building only for fleet orders and says the 380 special editions such as the Platinum and Sports models had been popular with private buyers. Mitsubishi hopes to sell more than 10,000 380s this year. So far it has built 8170, down from 9603 for the same period last year. McEniry says the 380 can continue despite its low build rate.  

A 2.4-litre Lancer VRX sedan will be available next year, and there are also plans for a Ralliart sedan and Sportback in the new compact family, but Mitsubishi is worried about their potential impact.The cars are being assessed for local sales, but could be rejected because they put too much price and performance pressure on the upcoming Evo X hero car and confuse customers with too much choice."We think Ralliart in the Lancer sedan will be popular but there’s a risk of cannibalising too much from the Evo,” the managing director of Mitsubishi Motors Australia, Rob McEniry, says."There in fact may be too much in that end of the range."Mitsubishi has been working for more than a year on a Ralliart plan for its locally-made 380 sedan, without going into production, but has too many choices for the all-new Lancer. It is now deciding which models to take and how it will work up through the Ralliart range to the Evo X."If we have a Ralliart on the sedan and the Sportback, and then Evo only on the sedan, whether in fact we might re-mix it and only have Ralliart on the Sportback rather than on the sedan as well," McEniry says."Then we’d step up to the Evo in the sedan, so you’ve got a gap. Then on the hatchback, you’ve got a sports line that goes out."They’re the things we’re playing with at the moment , we’ve got it all in the product program at the moment and it’s all available. It’s just how we mesh it in the final analysis.”McEniry will not even hint at the possible price tag of a Ralliart Lancer sedan, except to say it "won’t be extraordinarily more” than the donor car.Still, to sit between the new 2-litre VRX and the upcoming Evo, the 2.4-litre VRX would need to be around $35,000 with the Ralliart at not much more than $40,000 to stay competitive.While Mitsubishi struggles with its compact choices it has a firm plan for the Evo X."When you step up to the Evo there will be three levels ; a stripped- out model for the rally competitors, then the second level will be a manual so they’ll be more street cars, and then there’s the top level with the double-clutch auto and that’s got a bit more luxury associated with it,” McEniry says.Yet there will need to be careful positioning."There will potentially being some cannibalisation from Ralliart Lancer. In terms of strategy, what we might do is not have the bottom- level Evo freely available, but more on customer order or dealer confirm order so that it is directed then at the track driver more than being more freely available as a road car," he says."So then the step up is more obvious."How we just manage that bit so we get the mix right as well, that’s going to be fun and games.”However, despite his concerns and planning problems, one of McEniry’s personal priorities at the Mitsubishi helm is to stretch the Ralliart halo over more of the brand."Ralliart could become a bigger opportunity for us,” he says."I’ve put up business cases to Japan on different aspects of it.There’s just a totally new area there that’s untapped and they see it as well."They’ve got some pretty excited people looking at it and they want to get back into it as well. It’s part of their fundamental strategy.”"McEniry says the first step is expanding the Ralliart network in Australia to get a bigger sales base."At the moment have 37 dealers who are both Ralliart dealers and Evo dealers. We want to take it up to a maximum of 90 who are Ralliart, but we’ll restrict the Evo to what it is today as a maximum in fact."And there’s a good reason for that restriction in that an Evo customer is probably a step up so the technical support, the ability of the car deserves that restricted, very specialist support.Extending the network will give us broader product base and allow the dealers to step the customer up as well.” 

Just 658 of the model were sold new in August, more than 38 per cent down on the 1069 in the same month last year. The previous lowest sales month was June last year when 719 cars were sold. The car was launched in October, 2005. Up to 1650 cars a month were sold in the early days of the model's release. In releasing its Vfacts figures, the Federal Chamber of Automotive Industries reported record August sales of new cars and commercial vehicles. The 88,206 sold was 6545, or 8 per cent, more than August last year and beat the best August 2005 by 2029. Mitsubishi Motors Australia management yesterday said it was “not happy” with August's 380 sales. “But it is not a trend. It is an anomaly,” corporate affairs manager Lenore Fletcher said. She said a changeover from Series II to the upgraded Series III model 380 in the month had left some variants unavailable. Ms Fletcher said the low for 380 sales was not to be interpreted that the end was in sight for production at the Tonsley Park plant. “We are quite confident sales will be back up in September and October. We don't expect that (low figure) to continue,” she said. The Vfacts figures show the new Toyota Corolla small car came close to knocking off the Holden Commodore as Australia's biggest selling car last month. Third most popular was the Toyota HiLux ute. The Mazda3 is ahead of the Ford Falcon in year-to-date sales.  

Mitsubishi has updated its 380 model, with an LPG dual-fuel engine among the changes.

As Australia's new car juggernaut rolls on towards the magic million sales mark, the number of available models continues to swell. Already recognised as one of the most diverse and competitive car markets in the world, Australian importers continue to add to the mix.With half the year nearly gone, buyers have taken almost 500,000 new vehicles into their garages with some of the traditional biggest selling months still to come.At least three new marques will arrive in Australian showrooms in the second half of  the year; Hummer, Mahindra and Skoda,  testament to the vibrancy of what is, in world terms, a minor market.However, it is the expanding model range within existing brands that will drive the Aussie market over the million mark for the first time.Over the next six months more than 50 new or revised models will arrive in Australian new car showrooms. Here's a look at what's coming soon:ASTON MARTINDip your lid in style in September with the V8 Roadster, a gorgeous extension of the Vantage. AUDI Audi starts its end-of-year program in September with the R8, the biggest, baddest Audi in the garage The Supercar looks with enough performance to keep most on their toes. Also on the cards for October is the A5, Audi's first coupe since the TT. An all-new platform which comes as a front-wheel-drive and quattro. In November the V8 4.2 TDi may answer some questions for the Q7, including on fuel economy. BMW You'll have to wait until October for the new M3, but the latest offering from the M garage has something special. It's the first V8 for an M3. CHRYSLER A Sebring convertible, topless cousin of the sedan launched in early 2007, arrives in December. DODGE The Nitro SUV joins the Caliber for Dodge next month and the US marque backs that up with its Avenger sedan in August. FIAT The baby Ritmo, sold as the Bravo in Europe, will be Fiat's second passenger offering in Australia when it lands in October. Expect petrol and diesel. FORD The rush to oil-burners continues with the Focus getting the honour of being Ford's first passenger diesel next month before the Focus CC, the drop-top concept that set hearts aflutter at Frankfurt two years ago lands in October. The other big news for Ford is the return in November of the Mondeo for a third tilt at Australia. HOLDEN The key second-half model from the General is the VE Ute, bringing all the developments in the VE sedan to the working man's Holden. HONDA The Civic Type-R is razor-sharp styling built around a high-revving fun package. Next month. HUMMER The iconic offroader from the land of the large truck opens its Aussie account in October, a couple of months later than anticipated as a result of production delays for the H3. Surprisingly agile with real offroad ability. HYUNDAI An important second-half for the Korean marque. It starts with the popular Santa Fe SUV finally getting the 3.3-litre V6 from the Sonata to give it some extra punch. In October, the new Elantra hatch joins the sedan in the Aussie line-up after a wait of almost 12 months. JAGUAR An October styling refresh for the marque's luxury sedan, the XJ, is all from the Big Cat this year before a big 2008. JEEP The second of Jeep's non-Rubicon Trail-rated soft-roaders arrives in August to join the Compass for duty around town. KIA The Carens compact people mover has never really taken off here. The new generation is a little bigger and more stylish. It will be powered by a four-cylinder petrol or diesel engine with five- or seven-seat capacity. On sale in October. LAND ROVERThe baby Freelander gets a complete makeover for this generational change. New engines and a new family look all go on show in July. MAHINDRAIndia's workhorse ute, the Pik-Up, starts to roll out to Australia in July. MAZDA A new generation and a new look for the little Mazda2. Sharper styling is the key to this one's October debut. At the same time Mazda will add a diesel option to its top-selling Mazda3 range. MERCEDES-BENZThe key model for Mercedes this year is the meat-and-potatoes C-Class. Bigger, brighter and ready to meet the masses it is available from July. Also on Mercedes' new-model list is an upgraded ML500 and R-Class in September, both getting the 285kW V8 engine. October is a big month for the three-pointed star with the crackingCL65 AMG (a bi-turbo V12 with 450kW and 1000Nm) and the more sociable S320 CDi, which marries diesel with uber-luxury. MITSUBISHI You have to love a fighter. Australia's “other” family car, the 380, wins a minor refresh with some interior updates from next month. In August the automatic turbo diesel, traditionally the model's top seller, completes the Triton range while in October the point guard for the red-hot Evo X (due late in the year), the new Lancer, promises look-at-me-styling and more punch than the current model. NISSANThe baby Micra finally gets the green light for Australia with an October date with sales. In November the X-Trail, a core model for Nissan and the compact SUV that set the benchmark for those who actually can go off-road, gets a full generational change. The Dualis arrives in December. A softer option to the X-Trail, it sits on a similar platform but is more plush. PEUGEOT It's all about size for the French manufacturer. In July the 207CC, the previous generation of which set the standard for accessorising small cars, is back and promising to reclaim the crown. Its far more focused and athletic sibling, the GTi arrives in August with its turbocharged 1.6-litre engine. The station wagon derivative of the base 207 goes on sale in October. PORSCHEThe 911 turbo cabriolet proves Porsche's belief that if you can go fast in a sedan you should be able to go just as fast in a cabriolet. In September you can prove it for yourself. RENAULT August sees the Megane diesel join the Renault fleet, while the Clio Sport returns in November in an all-new guise. SAAB The new 9-3 will highlight Saab's first all-wheel-drive system in a completely renewed model range. All models arrive in November. SKODA Launches into Australia with a two-pronged attack in October. The Octavia medium-sized hatch and the quaintly named Roomster compact MPV will carry the flag initially. SMARTIn September the next next-generation smart ForTwo arrives, a little bigger and a little smarter. SUBARU The new Impreza is one of the most polarising styling departures of the year. In basic and WRX fettle the hatch arrives in September. A cult car heads mainstream and the jury is out. SUZUKIIf it ain't broke ... A freshen-up for the car that put punch back in Suzuki's local range, the brilliant Swift is in showrooms in October with the sedan version of the SX4 “tall hatch” joining the stable in September. TOYOTA The first product from Toyota's new “hot shop”, the Aurion TRD, arrives in August with a 3.5-litre supercharged V6 with sports manners and a load of plastic kit. Also in August is the generational change for Kluger with the SUV getting a substantial facelift and the 3.5-litre V6 from the Aurion. November brings the Landcruiser 200 Series and a TRD version of the HiLux. VOLVO The highlight for the Swedes in the second half of the year is the all-new generation of the XC70 due in November. About the same time the C30 will get the in-line five-cylinder diesel. VW A hot version of the Passat, the R36, is heading Down Under in November. 

Television reality shows do not have a monopoly on extreme makeovers -- car companies are renowned for the odd nip-and-tuck to keep a model fresh in car buyers' eyes. But Mitsubishi's freshen-up of its 380 sedan may fall into the category of modest makeover. The Series III update goes on sale in July but do not expect huge changes. Mitsubishi spokeswoman Lenore Fletcher describes the changes the range as cosmetic and largely restricted to new wheels, paint colours and some trim upgrades. The car's V6 engine specifications will remain the same, meaning the 3.8-litre V6 will still churn out 175kW at 5250 revs and 343Nm at 4000 revs. Mitsubishi is expected to realign some models in an effort to streamline the line-up but Fletcher would not say whether any models would be dropped. The 380 line-up consists of ES, SX, VRX, LX and range-topping GT. Mitsubishi, like all local carmakers, is under pressure to streamline models to avoid excessive build costs associated with too many variants. However, a special Platinum-edition 380 with $4000 of extra equipment has been a minor success for the company and could be a more frequent offering. Fletcher confirmed the 380 Series III pricing would remain at $27,990 for the entry model. When the 380 was launched in late 2005 it had a starting price of $34,490, but the company was forced to reduce prices in an effort to drive sales. Mitsubishi had hoped to show a VRX prototype at this week's Adelaide Motor Show, but the car was unavailable. The Series III upgrade is the second freshen-up in the 380's 18-month life. Last April it received a Series I upgrade in an effort to bolster slow sales. According to VFACTS sales figures, the 380 consistently sells about 1000 a month, a figure the company says is viable. Despite the 380's valiant sales struggle, Mitsubishi's imports continue to be responsible for the lion's share of company revenues. Strong Lancer, Outlander and Pajero sales bolster its bottom line. The Lancer is the company's best seller. Mitsubishi is eagerly awaiting the arrival of the next-generation 113kW 2.0-litre and 130kW 2.4-litre Lancer about October. However, performance buyers will have to wait until next year for the turbocharged 2.0-litre Evo X. Though few details are known, the Evo X's power output is expected to grow from 206kW to about 220kW and its all-wheel-drive system and safety systems have been upgraded. The Evo X is expected to offer a Volkswagen Golf-style six-speed manual direct-shift gearbox.

The supercharged TMR 380, built to star at last year's Sydney Motor Show, is almost ready for the road, but still needs the green light from Adelaide. Mitsubishi Motors Australia is keen to push the TMR into production, but needs to ensure it can be certified and profitable before a final decision. Budgets also need to be approved from Japan. And the 380 project needs to be integrated into a bigger strategic plan to give Mitsubishi a full-scale special vehicles division, bringing it up to speed against Ford, GM Holden and, from later this year, Toyota. "We want to build the car. We are working on the plan to make it happen," Mitsubishi Motors Australia managing director Rob McEniry says. "I would like to have a decision by Easter. Originally, I wanted to have an announcement at the Melbourne Motor Show in March but we've run into a few snags. I would still rate it as better than a 50:50 chance — no, much better than 50:50. "That car, plus some other vehicles we would like to bring to the full range, adds an emotional value and an aspiration value to the brand. We've had that before, but only in very limited appeal with the Lancer Evo. "There has been no opportunity for people to step back to another car at Mitsubishi. If you look at Ford or Holden, they have the HSV and FPV cars, but you can also step back to an XR Falcon or SS Commodore. We also need to have that ability." The 380 show car was built by Team Mitsubishi Ralliart under the direction of rally team boss Alan Heaphy, with a Sprintex supercharged engine producing 230kW and a range of upgraded mechanical components, including the brakes taken from the Lancer Evo. It also has a bodykit, vented bonnet and lowered suspension. McEniry is aware of the overall need to move into special vehicles at Mitsubishi, not just a single car like the TMR 380. "This is an important part of trying to change the perception of the brand. We don't want to be a grey-cardigan company," he says. "We need to appeal to more than just fleet buyers, which has been the traditional situation at Mitsubishi. I think today we need to appeal to youth. "One of the reasons we brought out the Ralliart Colt and the Cabriolet was to appeal to a younger, broader and more emotionally based consumer group." McEniry's special-vehicle plan is still being assessed and includes such basics as whether it will be run by an outside company or from inside MMAL in Adelaide. But he is keen to get the TMR 380 moving and believes it should be in showrooms in the second half of the year. "Because it is off-the-shelf parts and we've continued to refine and develop those parts, it will probably be ready by the third or fourth quarter this year," he says. "It's not a signed-off project yet, but our plan is to move towards approving it and getting it into production as soon as we can."

And the company has hinted it may end up in production, depending on customer reaction. The TMR 380 has been tricked up by Mitsubishi rally team Ralliart. They have plonked a 220kW supercharged engine under the bonnet and added a range of suspension improvements for better handling. Cosmetic improvements include fitting larger wheels and tyres and adding an edgy body kit that includes side skirts, grilles and a bonnet scoop. The interior is modified by the addition of some Lancer Evolution items. Adding the Sprintex supercharger to the normal 3.8-litre engine has Mitsubishi boasting 31 per cent more power and 29 per cent more torque. It is claiming the car will go from 0-100km/h in six seconds and 0-400m in 14 seconds. It has a five-speed manual gearbox. "The car is shown to test reaction with show-goers with a view to possible introduction in the future," a Mitsubishi spokesman says.

AMWU South Australian state secretary John Camillo said tonight he had been told a leaked draft document titled "Project Pheonix" was not a policy of the car maker. The report, outlining a secret plan for closing Mitsubishi's operations in Australia, was made public tonight on ABC Television's 7.30 Report. Mr Camillo said he first became aware of the leaked document when contacted by an ABC journalist several weeks ago, and this led him to contact senior management at Mitsubishi. "The senior executive of Mitsubishi made it quite clear to us that, while they've done quite a few projects, there is no decision to close the Mitsubishi operation," Mr Camillo said. The car maker has 1,600 workers at its assembly plant, in Tonsley Park, in Adelaide's South, and Mr Camillo said these workers had received recent assurances from the company that their jobs were sound. "If they (Mitsubishi) are dishonest, those workers will get to know that and the union will be extremely annoyed if that is the case," he said. "If they try to hide those things, sooner or later it comes out in the open ... and it only makes it very very hard for Mitsubishi in Australia if that is the case." Mr Camillo said he had called Mitsubishi tonight following the program and was awaiting a return call. The draft document, which was stamped confidential and dated September 6 this year, listed Mitsubishi Australia's chief executive Robert McEniry as the leader of Project Phoenix, the ABC reported. It set out three possible dates for closure: February or October 2007 or March 2008. It also said an announcement would be made just four months before the closure date, and the company would create the illusion of business as usual by continuing to place small orders for stock until one month before closure was announced. According to the ABC, the document said ceasing local production was "inevitable" as sales of its locally made 380 sedan had failed to meet expectations and that Mitsubishi would remain in Australia only as an importer of vehicles. The South Australian and federal governments would receive unofficial notice one month before the announcement, not the three to four months requested in case they leaked the closure plan to the media. The unions would receive "no informal pre-notice at all". Federal Treasurer Peter Costello tonight said the government had been in touch with Mitsubishi about the report and had been told the company had no plan to cease production. "I don't believe the contrary is true because Mitsubishi has given that information to the government," he told ABC TV. He said the car company's acceptance of the government's multibillion dollar package, which continues until 2015, indicated that Mitsubishi regarded itself as having a long-term future manufacturing in Australia. Mr Costello said he could not confirm the accuracy of the document, but the government would "very much" be concerned if the report was true. "I'd be concerned a, about the industry, b, about the workers and c, that we have been assured to the contrary," he said. "(But) you've got to be very careful with these things - it could be a false lead, it could be someone who's not in a position to make the decision." Mr Camillo said any speculation about the closure of Mitsubishi's Australian operations came as a major blow to workers' morale at the Adelaide assembly plant. "And it is alarming to see that part of that speculation is that there will be no consultation with the union if there is an announcement to close the Mitsubishi operation," he said. AAP