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Industry Report Part 1: Mitsubishi Faces Unprecedented Challenges in Canadian Market

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Khatir Soltani

When it comes right down to it, Mitsubishi has come to Canada with a lineup of excellent products. They're not perfect for sure, but few faults can be found with its most recent offerings compared to top-selling rivals. The uphill battle the company faces is therefore not hindered by its products at all, but more so with the need to get you, Canada's buying public, who are traditionally more brand loyal than consumers in the U.S., to step up and drive its products.

Mitsubishi has come to Canada with a very strong lineup, with few faults to be found in any of the vehicles. (Photo: Trevor Hofmann, Canadian Auto Press)

"We need to do a more effective job of giving people a chance to put our cars on their shopping lists," added O'Neill.

While on the surface this sounds like a simple case of getting the word out via conventional marketing channels, such as television, radio, print and internet media, it's not that easy. For the most part such advertising pulls in only about 25 percent of new car buyers, with word of mouth (yapping with the neighbor over the fence, buying the nameplate your father drives for first time buyers, etc.) making up the remainder of conquest sales. Such critical mass is crucial for success. Yet it's hard to get the ball rolling unless, like Hyundai and Kia, an automaker enters the market with a significant value proposition that starts with the lowest prices available.

Canada's buying public are traditionally more brand loyal than consumers in the U.S., putting Mitsubishi at an early disadvantage. (Photo: Alexandra Straub, Canadian Auto Press)

Unless Mitsubishi invests heavily in Korean or Chinese manufacturing facilities, it will be a long time until its Japanese and U.S. based plants, which perform well in productivity and quality, can compete with low-wage workforces and dramatically reduced regulatory restrictions.

What to do? Critical mass not being on the brand's short list of possibilities, the company is left with those conventional marketing channels again, as well as a variety of creative, outside of the box ideas effective for luring in potential buyers.

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada