The product swapping will be necessary if MMC's plans to reduce its current vehicle "platforms" down from fifteen to six by 2010, while launching an all-new strategic car for Asian markets and a total of 44 new models under the "MMC DNA" strategy.
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| In an effort to reduce the number of platforms being used, the update for the slow selling Diamante will probably be built off of Galant/Endeavor architecture. (Photo: Shawn Pisio, Canadian Auto Press) |
Currently the brand is taking advantage of such economies of scale in the North American market by producing the Galant sedan and Endeavor SUV off of the same chassis architecture, but the slow selling Australian-built Diamante (Magna and Verada), for instance, will probably have be built off of the Galant/Endeavor architecture. The company announced a replacement will be forthcoming in 2005, but still manufactured in the Adelaide, Australia plant.
MMC has also done well with its Montero (Pajero) full-size SUV and Lancer compact car in most markets, with its Lancer EVO rally race replica not only selling well but providing a much needed halo over the brand.
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| The Lancer EVO rally race replica is not only selling well but providing a much needed halo over the Mitsubishi brand. (Photo: Trevor Hofmann, Canadian Auto Press) |
The revitalization plan is said to focus more on non-Japanese Asian markets, with the most energy going to China - the fastest growing car market in the world - through its strategic alliance with China Motor Corp. (CMC), which will be investing 10 million yen into the MMC restructuring plan.
By not stating anything specific about investment in the North American market, MMC either is happy with the current manufacturing operations and product strategy, or still feeling burned by the losses it incurred there. All it would say regarding its U.S.-based production facilities is that output capacity is to be "adjusted," and that it would investigate forming strategic alliances with "external partners." It wouldn't be too off-base to speculate two of those partners will most likely be DaimlerChrysler and Hyundai, both which have working relationships with the Japanese automaker.