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

In MMNA's previous fiscal year, which ended March 31st, 2004, total year end losses tallied up to 125.97 billion yen (1.5

"Sales volume will fall, but as long as we sell cars in a sound manner we will be able to turn a profit in the fourth quarter." (Photo: Trevor Hofmann, Canadian Auto Press)

billion CAD; 1.14 billion USD), due partially to the automaker's credit policy, which offered those with questionable credit to purchase new cars with no interest and no payments for the first six months, Reuters reported. While the policy drove up new car sales, it resulted in a higher percentage of defaults than the norm, and severe losses. The automaker's new policies will not allow anything similar to reoccur.

Masuko, talking to reporters about MMNA's previous sales strategy stated, "This was no way of doing business." Commenting on the automaker's new approach he continued, "Sales volume will fall, but as long as we sell cars in a sound manner we will be able to turn a profit in the fourth quarter." Strengthening his message

In a move to further tighten its belt, Mitsubishi is looking to greatly reduce the number of its American dealerships. (Photo: Mitsubishi Motors North America)

Masuko added, "We're not going to repeat the mistake of chasing volumes at the expense of profits."

One of the changes being considered is to reduce U.S. Mitsubishi dealer numbers, from approximately 630 retailers now to a number that would better reflect its current sales. At month end MMNA's year to date sales were only at 112,995 units, heading towards a year end total of about half the previous yearly sales numbers which averaged at about 500,000 vehicles per year.

"We are under no illusion that we'll go back to selling that many vehicles any time soon," Masuko told reporters. "We need to slash dealerships by quite a bit."