Mitsubishi Gets $686 Million in Loans to Support Restructuring Plan

The automaker is looking to its most recently introduced models to boost revenues, particularly the all-new Galant sedan and equally

Mitsubishi is hoping the all-new Galant sedan and equally impressive Endeavor crossover SUV (shown) will help boost sales. (Photo: Mitsubishi Motors North America)

impressive Endeavor crossover SUV. Getting the axe will be the slow selling Diamante luxury sedan, now overshadowed by the Galant, and Montero Sport, a smaller, more starkly equipped off-road capable sport utility than the brand's 7-occupant Montero. While the Montero is comparable to more expensive luxury SUVs, offering excellent value in the category, the Montero Sport is far past its due date. Rather than redesigning the model and then continuing forward with one of the most diversified sport utility lineups in the industry, Mitsubishi has cancelled the outdated model. Some reports have stated that the larger Montero is to be cancelled too, although this cannot be confirmed through sources at MMC. The move wouldn't make a lot of sense, however, despite its lethargic sales, as Mitsubishi is in need of a flagship model in the luxury segment, and the Montero stacks up well against its competition. It also gives dealers an opportunity to sell customers up to a vehicle with higher profit margin, extremely important.

MMC's compact Lancer sedan and Outlander SUV are the volume leaders, the latter which will get a turbocharged shot in the arm next year. MMC unveiled the Outlander Turbo in Paris last week, complete with a turbocharged, 2.0-liter, 4-cylinder engine that produces 199 horsepower and 224 lb-ft of torque, driven by all four wheels. The new model will get a reworked grille and headlamps to go along with the

The Montero Sport, a smaller, more starkly equipped sport utility than the brand's 7-occupant Montero, will be one of the axed vehicles from Mitsubishi's lineup. (Photo: Trevor Hofmann, Canadian Auto Press)

additional power. Rival carmaker Subaru made a similar move with its Forester crossover last year, dubbed the XT.

Other than the Eclipse sport coupe and convertible, plus the Dodge Dakota-based Raider sport truck, which have already been announced, look for Mitsubishi to continue this trend of upgrading its current model lineup, many vehicles of which are only currently at their mid-cycle point, rather than boost brand excitement by launching completely redesigned "all-new" models for the time being. An example of this is the recently upgraded EVO VIII MR, what many experts believe to be one of the best performance cars available the world over. This strategy not only brings much needed notoriety on the street, where performance news travels fast, but also boosts morale within the company and throughout its independent dealerships, at the lowest capital expenditure.