Dismal Quarter 1 Sales in 2004
Mitsubishi! > Cars > Sales > USA > 2004 > Quarter One
LATEST: May 3, 2004. Mitsubishi 2004 April Sales Very Very Poor - Off by over 34% compared to 2003 April sales
April 1, 2004. Motsubishi Motors continued its saga of declining sales. Overall sales for the first quarter of 2004 were down by 19% compared to that of 2003. Cars registered 17% decline while SUVs were big losers, losing about 22% of their sales. Montero Sport took a tumble, selling about one fourth of what it sold last year with decline of 73%.
Positive Spin on 2004 Galant Sales
The company's PR boldly claimed in its headline - Galant Sales up 38 Percent Over Previous Year and sales for the month indeed went up. However, on closer examination we find that overall quarterly sales for the Galant cars compared to the previous year are off by 25%. Month to month inventory adjustment, new ad campaigns, dealer incentives etc. can lift sales in the short-term but whether that will sustain in the long-run has to be seen.
Our Take
Various analysts have pointed to the endaka (high value of yen compared to the US dollar) as a primary reason why Mitsubishi is unable to offer big incentives to customers to boost its sales because lots of its auto components are brought to the USA from Japan. We tend to disagree.
We checked out government sites, big auto-selling services on internet, magazine reviews and other sources and what we found almost missing, or hidden in some obscure place, are the quality concerns and more importantly, poor safety ratings of some of Mitsubishi's vehicles. However, what stands out, is the fact that US consumers are becoming wiser and are able to discount what organizations with vested financial interest in selling more Mitsubishi cars are telling them and are instead focusing more on Mitsubishi's poor service and poor safety rating to stay away from them. We doubt that any financial incentive will draw out sensible customers. We think that Mitsubishi is finished UNLESS the new management mends its ways quickly and treats customers and employees with dignity.
Mitsubishi Models and Percentage Sale Change
Note: Mirage line is discontinued. Lancer Sportback Ralliart is a new line.
ECLIPSE COUPE -30%
ECLIPSE SPYDER 30%
LANCER -11%
LANCER EVOLUTION 108%
LANCER SPORTBACK NA
GALANT -25%
DIAMANTE -42%
OUTLANDER -47%
MONTERO SPORT -73%
ENDEAVOR 3033%
MONTERO -26%