Mitsubishi Motors North America to be Back in Black in the Automaker's Q4

Interestingly, Canadian Mitsubishi customers are not covered by either upgraded warranty, but continue with a three year

MMNA is expecting to sell just over 180,000 units this year, well short of their 233,000 unit prediction. (Photo: Trevor Hofmann, Canadian Auto Press)

or 60,000 kilometer comprehensive warranty and a five year, 100,000 km powertrain warranty. The Canadian warranty coverage is similar to warranties offered by the domestics and competitive Japanese brands, such as Toyota and Honda, but not as comprehensive as Korean automakers Hyundai and Kia, which are also stronger sellers in the Canadian market. Mitsubishi's decision not to bolster its Canadian operations with a stronger warranty is an unusual move, as Canada's newest and therefore least recognizable automotive nameplate could use all the help it can get to win over Canadian consumers.

Warranties aside, before MMNA starts seeing black, sales volumes are expected to remain relatively flat in the U.S. Earlier this week the Japanese automaker stated that its end-of-year target of 233,000 units will most likely not be met, with an expectation of approximately 183,000 units being more realistic,

MMNA is one of the first automakers to openly suffer the consequences of profit-reducing sales incentives. (Photo: Mitsubishi Motors North America)

50,000 short of the initial target. It seems as though MMNA is one of the first automakers to openly suffer the consequences of profit-reducing sales incentives, a strategy previously used to drive market share and increase volumes.

While the domestics and some import brands will continue to lure in buyers by pitching non-product related incentives, MMNA is taking the high road of fiscal responsibility. Of course, there's nothing like the necessity of the moment to cause business executives to conduct themselves prudently, and to this end Osamu Masuko, managing director in charge of Mitsubishi's overseas operations, has stated that MMNA will only be profitable in the company's final 2004/2005 quarter if its dealers stay away from overly aggressive, costly sales methods.