Mitsubishi 380 News

The last of the Mitsubishi 380s will come off the production line to end car manufacturing at Mitsubishi's plant at Tonsley Park this afternoon. It is understood a media presentation at the plant this afternoon will reveal what will happen to the final few cars made today. “Some of the last vehicles off the line will go to special homes,” Mitsubishi Motors Australia Ltd corporate communications manager Lenore Fletcher said yesterday. “There has been a great deal of interest in the final vehicles of 380 production.” Today the final checks will be made on the last cars to be built at the southern suburbs car factory, opened 44 years ago under the Chrysler Australia banner. The closure of the plant - and loss of 930 jobs - was announced early last month by MMAL president and chief executive Robert McEniry. Tonsley Park makes only the 380, a large sedan, at a time when the swing has been away from large cars. And it could not find a business case to produce any other model. “This has been a very difficult decision,” Mr McEniry said. Mitsubishi's task from now is to make sure motorists realise it remains as an importer and a strong car brand in Australia. It is arranging full parts warranty and service support for all Mitsubishi products, including the 380, at its 200 dealers across the nation. A decision is yet to be made on what will happen to the large site at Tonsley Park, although the State Government has said it does not want it to go to housing development but wishes it to stay an industrial precinct, creating permanent jobs.  

We collectively bought more than 82,000 vehicles last month, close enough to a 7 per cent rise over January 2007.Looking at it another way, contracts on 213 vehicles were signed for each of the 25 selling days in the month. That's a record over last year, which in itself was a record over 2006.Toyota remains king of the sales heap and the big movers were the small, medium and SUV sectors. Sales of large cars continued to plummet, which must be a worry to Ford as it prepares to launch its new Falcon.Mitsubishi, which is pulling out of manufacturing here, finished a distant sixth in the sales race, with Honda and Mazda both outselling the former car giant. So, according the industry statistician facts, who were the winners?Toyota's Yaris dominated the cheap and cheerful light market, with the Mazda2 and Honda Jazz also popular with buyers.The hotly contested small car market continues to be a bloody battleground. Toyota's Corolla was streets ahead of its opposition but the real fight was for the crumbs, with the Mazda3, Ford Focus and Honda Civic all doing well.The mid-sized market, which has been quiet, is picking up pace as buyers downsize. Most went for the Toyota Camry ahead of the Mazda6, with Subaru's Liberty a distant third.The large car market was a disaster for the local players. The Commodore was the best seller but it, along with the Falcon, Mitsubishi 380, Honda Accord and Hyundai Grandeur, lost ground.The star performer was Toyota's Aurion, which outsold the Falcon.Of the rest of the new car fleet, Honda's Odyssey beat the cheaper Kia Carnival in the people mover market, while the big surprise was in the SUV sector where Honda's CR-V outsold the Subaru Forester, Toyota's RAV 4 and recently launched Nissan X-Trail.The sales stats throw up some interesting facts and figures.Private buyers are taking a big liking to diesel engines (sales are up 82 per cent but still a low volume), while vehicles running on LPG are out of favour (down 64 per cent). Hybrid models enjoyed 11 per cent growth.And just to show how global the industry has become, last month we bought vehicles made in 23 countries. While most cars still come from Japan, there were models from the Czech Republic, Indonesia, Mexico, Poland, Portugal, Spain and Turkey. 

But not before taxpayers pumped at least $215 million into the company's Australian operation.The handouts from state and federal governments between 2001 and 2008 work out to about $1816 for each car Mitsubishi produced locally during that time — about 6 per cent of the sticker price of a new 380 model, currently selling from $28,990.The commonwealth gave Mitsubishi $180 million of credits between 2001 and November 2007 through the Automotive Competitiveness and Investment Scheme, which encourages development of the industry.The South Australian Government has handed more than $43million to Mitsubishi since 1993, including a $35 million loan for the development of the 380 model, which the company yesterday agreed to repay.At the instigation of Premier Mike Rann, the state yesterday served Mitsubishi with a demand for repayment of the loan, after the company breached a condition that it maintain production until at least the end of 2010. “I'll be asking for the money back — simple as that,” Mr Rann said.Mitsubishi has made only about 28,000 380s since the model's launch in 2005, with maximum monthly sales of about 1000 cars, never achieving the 30,000 yearly sale figure initially expected. The state Government also provided more than $8 million to attract the V6 engine block casting facility to Lonsdale — closed in 2004 — and for Mitsubishi staff training programs.Federal Chamber of Automotive Industries chief executive Andrew McKellar said Mitsubishi had acted in good faith by accepting government money to continue production in Australia.“Mitsubishi has made absolutely every endeavour to ensure they have honoured whatever commitment undertakings they entered into,” Mr McKellar said.John Camillo, state secretary of the Australian Manufacturing Workers Union, agreed Mitsubishi should repay the Government its $35 million loan. “Mitsubishi must pay the state Government, because it's not the state Government's money — it's the taxpayers' money,” he said.Mr Camillo said workers affected by the closure of the Lonsdale plant had not received adequate assistance in finding other jobs. “What we really need is the state Government to help in regard to retraining the highly skilled workers here into other jobs in South Australia,” he said.Mr McKellar said Mitsubishi's closure would have little effect on the Australian industry as the company made up only 2-3 per cent of local production.More than $7 billion has been committed through the ACIS, to be paid between 2001 and 2015, to help the industry to become more internationally competitive. 

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 National Motor Vehicle Theft Reduction Council (NMVTRC) yesterday revealed motor theft would become harder with the use of personal scanning, impact-resistant windows and automatic deadlocking doors.The council previewed a 3D virtual car featuring security innovations to be introduced in five to 10 years. Features of the future included an improved identification system, a satellite global-tracking system and a centrally monitored two-way communications system, including an interior camera and panic alert.Motor theft across Australia is down to a record low of 62,000 vehicles a year. NSW theft rates have dropped from 47,338 five years ago to 26,891 this year.NMVTRC executive director Ray Carroll yesterday called on motorists to be more aware of security features when buying a new car and urged car manufacturers to lift their game.The NMVTRC also unveiled the nine most secure cars in Australia.Among these were the Volkswagen Polo, Citroen C2, the Subaru Liberty 2.0R and the Mitsubishi 380.Do you think all new cars should have smart access system as a standard feature?

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.  

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 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.Though the 380 sales results are well below original predictions, the Adelaide-based 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. 

This year has seen the market share of Commodore, Falcon and the Mitsubishi 380 fall to 19 per cent of new passenger vehicles, with only Toyota's Camry more or less immune.And while it was the biggest sales October ever, the share enjoyed by big Australian cars was reduced to 17.2 per cent. The lighter fare from Thailand achieved a best-ever 15.4 per cent. The Vfacts monthly bulletin, released this week by the Federal Chamber of Automotive Industries, recorded that 89,289 motor vehicles were sold in October; an increase of 9359 on the same month last year.It beats the previous record for October, set in 2004, by more than 8000 sales. Year-to-date the market is up by 70,000 vehicles as it continues its charge towards breaking the one million mark for the first time.Yet against this bumper backdrop, 15,382 Australian-made units were shifted last month, mostly to fleets.Japanese-made cars continued their dominance but Thailand is where Honda's CR-V, Civic and Accord sedans are made. These and others, including Ford's Courier, which accounted for 13,825 sales in October.In sharp contrast to ever-diminishing local sales, that Thai-built percentage has increased by almost 50 per cent so far in 2007.Petrol prices are blamed for the decline of the great Australian six-cylinder. But the fact four medium-sized SUVs sold more than 1000 units each last month gives the lie to that.Yes, light cars, spearheaded by 1193 sales of the new Mazda2, experienced a sales surge, but the truth for the big Aussies is grimmer than the rising cost of the stuff that makes them go. The fact is that given wealth of choice, fewer and fewer Australians want the types of cars made in Australia.FCAI chief executive Andrew McKellar says the locals have never had it tougher.“The intensely competitive situation in the motor-vehicle market is being driven to a significant degree by the ongoing strength of the Australian dollar,” he says. McKellar says 4400 Commodores (excluding utes) were moved last month, so with about 300 more sales than the Corolla, it is the nation's number-one seller.Toyota's eggs are in more than one basket with the ever-competitive Yaris, Camry, RAV4 and Prado prominent among its 20,212 October sales. Holden managed 11,415 and Ford 8206. It was the first time that Toyota had outsold the combined total of Holden and Ford in any single month.Year-to-date Toyota leads Holden by 71,360 with the launch of the new LandCruiser this month.If Toyota's lead is unassailable, surely the success story is Mazda.At number four, the leading full-imported marque sells not a single car to fleets or rental companies. They all go to private buyers.October's best-ever 7271 sales represented Mazda's 10th record month in a row. Mazda's year-to-date total of 64,929 already surpasses its 2006 full-year sales result of 63,664.  Snapshot   Country of originJapan 31,838Australia 15,382Thailand 13,825Korea 9830Germany 3901South Africa 2434Belgium 1525US 1448Spain 1422France 1206 The biggest sellers1 Holden Commodore (Australia) 44402 Toyota Corolla (Japan) 41233 Mazda3 (Japan) 31254 Ford Falcon (Australia) 24395 Toyota Camry (Australia) 19946 Hyundai Getz (Korea) 18967 Toyota Aurion (Australia) 18318 Mitsubishi Lancer (Japan) 14469 Honda Civic (Thailand) 140910 Honda CR-V (Thailand) 129111 Toyota RAV4 (Japan) 129312 Toyota Prado (Japan) 127313 Suzuki Swift (Japan) 119714 Mazda2 (Japan) 119315 Ford Territory (Australia) 119016 Toyota Kluger and Subaru Forester (both Japan) 117317 Holden Astra (Belgium) 111818 Mitsubishi 380 (Australia) 110019 Holden Captiva (Korea) 109320 Nissan Tiida (Thailand) 1087 

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.