MITSUBISHI Motors Corporation

History Of Mitsubishi

Mitsubishi Motor's automotive tradition goes back to 1917 when the Mitsubishi Model A, Japan's first series-production automobile, was introduced. Over the next two decades the company established themselves as an innovator, developing, amongst others, Japan's first diesel engine, its first large-sized bus (the start of the world famous Fuso commercial vehicle series), its first four-wheel drive passenger car prototype, and its first diesel-powered truck.

At the end of the Second World War Japan's large industrial groups were dismantled by order of the Allied powers and Mitsubishi Heavy Industries was split into three regional companies, each with an involvement in motor vehicle development.

The country's major need at this time was for commercial vehicles, the situation being further complicated during the first few years by a severe fuel shortage. In consequence 1946 saw the introduction of a bus which could be run on either petrol or alternative fuels, and, in 1947, an electric bus; in the truck field the innovations continued with Japan's first truck to be equipped with an air suspension system, as well as the first tilt-cab truck. Passenger vehicle production was confined primarily to Mitsubishi's first scooter.

By the beginning of the 1960s, however, Japan's economy was gearing up: wages were rising and the idea of family motoring was taking off. The Mitsubishi 500, a mass market saloon, fulfilled this need; followed, in 1962, by a four-seater micro-compact with a two-stroke air-cooled 359cc engine, the Minica - a name which still lives today. The first Colt -a larger, more comfortable family car, not a predecessor of the modern Colt - was also introduced in the same year, and the first Galant in 1969. This was a genuine pacesetter in the Japanese market, representing the best and latest in automotive technology and was to sire a long and illustrious line with a string of motor sports honours and consumer awards to its name.

With similar growth in its commercial vehicle production it was decided that the company should create a single operation to focus on the automotive industry and, in 1970, the Mitsubishi Motors Corporation (MMC) was formed.

The 1970's saw the beginning of Mitsubishi's considerable international rallying success with Galants and Lancers, demonstrating the qualities of performance and reliability for which they are known today. As part of a global expansion programme in 1974 UK distribution was ensured with the formation of 'The Colt Car Company', a joint venture between the Mitsubishi Corporation and Colt Automotive Limited.

By the end of the decade Mitsubishi vehicles were picking up honours both at home and abroad, including South Africa's 1977 "Car of the Year" (the Galant) and 1979 "USA's Pick-up of the Year" (the L200). But this was just the start. In 1982 the Shogun (named Pajero or Montero in other parts of the world) was launched, a 4x4 which was quite different from anything that had been seen before. Quite incredibly, just a few months later in the Paris-Dakar rally, it took honours in the Production Class and the Marathon Class, as well as the Best Team award. Two years later it won outright and a legend was born. The Shogun became a global best-seller, winning "4x4 of the Year" awards in Britain, France, Australia, Spain and West Germany. And it was not alone on the honours list - Galants, Colts, Lancers and L200s were all being honoured worldwide.

Throughout the 1990s the Shogun continued to dominate rally events like the Dakar, and Mitsubishi vehicles also began to make their mark on the World Rally Championships. By the end of the century Tommi Makenin in a Lancer had won the Championship an historic four consecutive times whilst Lancers totally dominated the Group N Championships - for vehicles which are basically showroom standard.

Technologically this decade saw incredible advances. In 1990 MMC introduced the world's first Traction Control System, followed by Super Select 4WD and Multi-mode ABS in 1991 and INVECS in 1992. Commercial production of the Libero electric car began in 1994 whilst 1996 saw the development of the GDI engine.

Overseas production expansion was attained with the first Carismas rolling off the line at NedCar, Holland in 1995 - a joint venture between MMC, Volvo and the Dutch government - as well as the opening of production lines in Australia and Thailand. NedCar became a wholly owned MMC facility within a year.

In 2000, MMC and DaimlerChrysler (DC) developed a business partnership that involved design, development and production co-operation. DC purchased a 37% stake in MMC and at NedCar Volvo production was replaced by Smart Four-Fours. In 2004 DC's stake in MMC was sold to the Mitsubishi Family (comprising of Mitsubishi Corporation, Mitsubishi Heavy Industries and the Bank of Tokyo Mitsubishi). However, MMC and Daimler Chrysler have maintained a successful business relationship and continue to share B & C segment platforms and engines.

In terms of motor-sport, the strength of Mitsubishi's 4x4 heritage was yet again demonstrated by a record breaking 11th victory in the 2006 Dakar rally - the sixth successive victory for the Japanese manufacturer in six years.

Today, MMC has manufacturing facilities in over 30 countries and its sales and after-sales organisation is present in more than 170 countries.

Mitsubishi Motors Europe

In 2002, Mitsubishi Motors Europe was established in order to coordinate sales and after-sales specifically for the European market. European product revival started with the Colt in 2004 and subsequently the Grandis, Lancer Evolution IX, new L200 and most recently the Colt CZC Cabriolet joined the range. In 2007 the full product line-up transformation which started in 2004 will be completed with the introduction of the all new Outlander, revised Shogun, new Lancer and the Lancer Evolution X.

The Colt Car Company

The Colt Car Company (CCC) was established as the sole UK distributor in 1974. Other subsidiary companies are: Spitalgate Dealer Services (dealer wholesale stocking), Shogun Finance (retail finance company) and Colt Mid West (dealerships - currently there are 7). At present the company has a network of 142 dealerships, with an aim to increase to 150.

Prior to the end of import quotas in 1996 average annual sales were around 10,000 units, with a high mix of 4x4s. The introduction of European-built models at NedCar, together with the relaxation of import quotas on Japanese-built vehicles resulted in sales expectations increasing dramatically. However, as a result of unrealistic sales targets, inventory mounted up causing distress selling.

In 2000 a new management team headed by Jim Tyrrell took over. A new strategy was implemented for fleet business, product and pricing, with new terms for dealers and head office headcount reduced by 125. Mitsubishi soon became the fastest growing Japanese marque in the UK and annual sales more than doubled between the years 2000 - 2005 from 18,000 to 38,000.

CCC celebrated its 30th anniversary in 2004 by launching a range of new models including the Colt supermini, Grandis people carrier and Lancer Evolution IX high performance vehicle. The company went on to be named the number 1 European distributor in 2004.

The number one selling Mitsubishi vehicle in the UK in recent years has been the L200 pick-up (53,000 units sold between 1998 and 2005). In 2006, the new L200 was launched creating unprecedented interest. In the UK 1,500 orders were taken for the vehicle before it had even arrived in dealer showrooms. The new L200 looks set to maintain Mitsubishi's dominance of the pick-up segment in the UK, building on the retail share of the outgoing L200, which stood at an incredible 48% in 2005.

With the launch of four new major vehicles in 2007, CCC looks set to progress rapidly towards its ultimate target of 50,000 annual sales।

Principal Subsidiaries: Mitsubishi Motor Manufacturing of America, Inc.; Mitsubishi Motors Sales of America, Inc.; Mitsubishi Motors Credit of America, Inc.; Netherlands Car B.V.; Mitsubishi Motors Europe B.V.; Mitsubishi Motor Sales of Europe B.V.; Mitsubishi Motors Philippines Corporation; Mitsubishi Motors Australia Ltd.; Mitsubishi Automotive Techno-Metal Co., Ltd.; PABCO Co., Ltd.; Mitsubishi Automotive Techno-Service Co., Ltd.; Mitsubishi Automotive Engineering Co., Ltd.; Mitsubishi Automotive Logistics Co., Ltd.; Mitsubishi Auto Credit-Lease Corporation; Mitsubishi Fuso Bus and Truck Corp. (42%).

Principal Competitors:Honda Motor Company Limited; Nissan Motor Co., Ltd.; Toyota Motor Corporation; Ford Motor Company; General Motors Corporation; DaimlerChrysler AG.