In July 2020, Mitsubishi Motors Corporation (MMC) announced its new three-year plan, aptly named ‘Small but Beautiful’. Mitsubishi has made their intentions clear as they aim to focus their resources on technology across core regions which also includes Africa.
The three-year ‘Small but Beautiful’ plan will concentrate on rationalising costs and enhancing overall profitability by implementing a good management foundation. Mitsubishi wants to see sustainable growth from fiscal 2020 to at least 2022.
What Does The Mitsubishi Three-Year Plan Entail?
The automaker’s ‘Small but Beautiful’ plan is a way to drive growth and profitability. It involves more investment in research and development and possibly launching several new vehicles leveraging technologies from the alliance members, Renault and Nissan. This includes their semi-autonomous driving technology and electric powertrains. Mitsubishi also revealed a collaborative effort with Nissan studying a Kei-car which could result in an electric variant.
They plan on reducing fixed costs by implementing more optimised production capacities and using improved product and technology strategies based on structural reforms. Under the new three-year plan, Mitsubishi will concentrate on core regions and technologies and that means focusing on their most competitive market, the ASEAN region. The automaker will also focus on hybrid, plug-in hybrid and four-wheel-drive vehicles.
“We will shift our strategy from all-round expansion to selection and concentration. First of all, we will complete our structural reform and further strengthen our competitive areas, ultimately to build a corporate structure that can surely generate profits during this mid-term period,” said Takao Kato, representative executive officer and chief executive officer at Mitsubishi Motors Corporation.
Mitsubishi Motors Focusing On Developing Markets
The three-year plan announced in Japan shifts focus to developing markets and could assist developing businesses in Africa, Oceania and South America. All this will be possible once Mitsubishi has improved ASEAN management resources while strengthening its eco-friendly new model offerings by 2022.
“Market conditions are tough for everyone, but Mitsubishi Motors South Africa (MMSA) has a strong foothold with a strong following. On local soil, we are running a successful zero deposit campaign on various models, which are extremely popular, and we will continue with offers that are attractive to customers during these conditions,” says Nic Campbell, General Manager, Mitsubishi Motors SA.
The Mitsubishi Motors Corporation has confirmed that they will stop production of the popular Mitsubishi Pajero SUV in 2021. However, it will remain open in South Africa until that time. More exciting news involves Mitsubishi Motors South Africa recently revealing new models planned for the local market over the next two years. The Mitsubishi Xpander and the Mirage are already confirmed but more models could be added to the list.
Mitsubishi Motors will reveal plans on other vehicles in the lineup but here is what we know so far. They want to introduce a Mitsubishi Eclipse Cross plug-in hybrid in the 2020 financial year and a new Mitsubishi Outlander in 2021. They are also planning on an all-new electric car in China as part of a joint effort with GAC. Lastly, in 2022, Mitsubishi plans to launch a Triton and Outlander PHEV which is said to have a more refined powertrain.
No confirmation has been made on which new vehicles will be launched in South Africa but keep following our blog for all the latest news and updates. Stay in touch on Facebook for even more breaking news and visit our website for a closer look at our wide range of new and quality pre-owned vehicles.