Nissan's plan to take control of ailing Mitsubishi

There have been cheap cars put on the market, but potential buyers usually opted for used high quality cars. The infamous Yugo, the Chech imports, early Hyundai Ponies (1986), the Russian Lada, all proved that US buyers expect a certain level of technological quality and reliability.

Consumer Reports reported on early Subarus that buying used quality compact was a better idea.

In developing countries this primitive design and build quality is quite acceptable, and Mitsubishi does quite well there. The Mirage is actually sold there as a family car; the family’s previous transportation was a motor bike!

"Ever since cwatkin and Ed bought their Mirages, I have NOT seen any more Mitsubishis than before. They clearly have a very small presence in my neck of the woods."

+1
On any given day, in addition to BMW, Lexus, and Mercedes vehicles, I am more likely to see Maserati Quattroporte sedans, various Porsches, and several types of Land Rovers than I am to see a late-model Mitsubishi. When a company is selling luxury vehicles with a very high profit margin, it isn’t necessary to sell a huge number of them, but when you are selling low-end cars with a razor-thin profit margin, you need sales volume in order to be able to survive.

If I see various extremely expensive luxury cars in greater numbers than the total number of late-model Mitsubishis in my neck of the woods, that can’t bode well for Mitsubishi…

At one point Kia and Kyundai made rather low-quality, low-tech cars aimed at people with limited means.

That’s putting it nicely :smirk:

They’ve since drastically changed their approach, and their vehicles are now nearly on par with Honda and Toyota, as far as quality is concerned. Value-retention, not so much, but that’s not really my point

As a whole, people no longer think of Kia and Hyundai as garbage cars. They are pretty well-regarded, and get serious consideration, when it’s time to go car-shopping

Perhaps if Mitsubishi took the Hyundai/Kia approach, they would increase their odds of long-term survival in the north american market

@VDCdriver, maybe you don’t live close enough to the people that might be attracted to the Mirage. Maybe folks in Newark and other nearby low income municipalities are more likely to buy Mirages.

@jtsanders, Maybe yes, maybe no.
Even though I am retired, I still cover a fair amount of terra firma on a regular basis, and I still fail to see more than just a very occasional new-ish Mitsubishi of any variety:

I am in the Somerset Hills, but I go to Princeton at least once each week.
Once every few months, I go to the Jersey Gardens Outlet Mall, which is located in Elizabeth, NJ, and which attracts mostly lower-income folks.
A couple of times each year, I venture into Manhattan.
A few times each year, I go to the Ironbound neighborhood of Newark for the outstanding Portuguese food.
A few times each year, I drive up to the Woodbury Commons Outlet Mall in NY state.
A few times each year, I drive to The Poconos in order to visit relatives.

Whether I am in my own town, or in any of the above-named locales, seeing new-ish Mitsubishis is a rare occurrence. In fact, just last week I went to Trader Joe’s, and my friend who accompanied me pointed to a new Mitsu Outlander and asked, “What is that ugly thing?”. He had apparently never seen one previously, and I had seen just enough of them to know what it was from a moderate distance.

I guess I also am of the impression that the US auto market is not so much interested in the bare bones low cost auto, as much as they might say otherwise. Not saying there aren’t some but you have to have hundreds of thousands of customers a year to make a go of a model. The ones interested in high mileage seem more in it for the ecological end of it. At any rate I think basing your marketing plan on just a low end vehicle will just not sustain the business. Since the 50’s we’ve gradually offered options to meet customer expectations like heaters, radios, back up lights, roll down windows, power brakes, etc. Once you get used to some of these features, the bar gets raised in a hurry.

@jtsanders

I’m sorry, but your theory doesn’t really pan out

Believe me . . . I live right among “the people that might be attracted to the Mirage.”

And they’re not buying them, at least not in any meaningful numbers

As you know, I live in Los Angeles, and not even one of the nicer areas. I regularly drive through some VERY poor areas, and I hardly ever see any Mirages

First of all, there aren’t very many Mitsubishi dealers around

Second of all, could even be that many/most of the poor people . . . don’t want them

It’s been proven time and time again, that poor people don’t want to appear as such. They don’t want their clothing OR their cars to scream “poverty”

And I can’t blame anybody for that

@db4690 Correct. When Consumer Reports tested the Beetle in the late 60s they found it to be a competent car and good value for money.

Their conclusion was that “This is the kind of car many Americans should own, but probably won’t”.

Around that time I attended a waste management conference in Chicago. It included a tour of a solid waste energy recovery unit (energy from waste) in a nearby SW suburb. We drove through a less than prosperous neighborhood and in front of nearly every little house there was a used Cadillac!. I saw one VW Beetle, and it was parked in front of the Welfare office, and probably driven by the Welfare Officer.

Beetles were very successful on the West Coast and with students since their frame of reference was very different.

Perhaps Mitsubishi IS taking the Hyundai/Kia approach, what with the long 6/60 bumper-to-bumper, 10/100 powertrain warranty.

Some of you say that Mitsubishi sells cars like the Mirage as family sedans in second-and third world countries. Since many of the up-and-coming middle class in these countries aspire to have the things Americans have, I would think it’d be a BIG BIG selling point that Mitsubishi can say to these people, hey, these are the exact same cars we sell in the US market.

Luxury is relative anyway. I remember as a kid my father’s Ford Country Squire station wagon and my mother’s Ford Maverick. Roll-up windows, A/C never worked, AM radio. My parents bought new cars in the mid-80’s. Power windows, power door locks, AM/FM radio with cassette player, A/C that worked (for the first few years anyway. . . ) cruise control. To me those are the hallmarks of a luxury car. My new Mirage has all of that and a whole lot more. By my standards the Mirage IS a luxury car. What more could you possibly want/need in a car? (Although I have recently ridden in a 15 passenger van and I swear air conditioning was coming out of the seats - I thought it was one of those Mercedes vans but it turned out to be a Ford Transit connect van - very nice.)

Is it just me, or did it seem like the car a/c’s of the 70’s & 80’s never lasted more than a single summer? Every year when summer would roll around, the a/c would be blowing hot air again. My father refused to have the a/c fixed over and over again every year. Sometimes he would get the a/c fixed if we were going on vacation, then it would work for the rest of that summer, but next year it was back to rolling down the windows for air.

Yeah, there’s a few of us in the U.S. who want a bare-bones low cost auto, but not enough to build a profitable business selling them - it’s all about mindless consumerism, not about what you need, its about keeping up with the Joneses’.

Quote @db4690 ". . . poor people don’t want to appear as such. They don’t want their clothing OR their cars to scream “poverty” And I can’t blame anybody for that "; Yeah, about that. That’s a substantial part of the reason a lot of poor people stay poor.

There’s a saying, “The rich get richer and the poor get poorer.” A big reason for that is the rich behave in ways that create wealth, and the poor behave in ways that destroy wealth. I see many of my co-workers engage in this behavior all the time. When times are good they buy the most expensive vehicle they can get financing for, and spend thou$and$ more tricking it out with the most expensive rims and stereo equipment. Then when the overtime dries up, or they get hit with another child support order. . . . well, the ‘hook’ got it! There’s just an “easy-come-easy-go” attitude about the whole thing. Then they cry-cry because they’ve got to pay 36.9% interest for everything.

Edit to add: I remember riding through farm country you’d pass many ramshackle little houses along the road, many with shiny Cadillacs sitting in front of them. The saying was, if push comes to shove, “. . . you can sleep in the car, but you can’t drive the house.”

Is it just me, or did it seem like the car a/c's of the 70's & 80's never lasted more than a single summer?

My 80’s Fords had excellent AC that never needed attention.

Automotive News had this to say about Nissan’s plans for Mistu:

"With Nissan racing to build its own U.S. market share and struggling to get enough factory capacity to supply its own retailers, the prospect of pausing to help build up a Japanese-brand competitor looks like an unlikely move as the companies sketch out their plans.

[…] Helping Mitsubishi find its footing in the U.S. market after years of setbacks and decline would require a new product portfolio, which would likely translate to Mitsubishi versions of Nissan’s core products. Nissan is already feeling a capacity pinch in North America. It has turned to a Japanese factory for a third source of Rogue crossovers, as its plants in the U.S. and Mexico run on three shifts."

“Is it just me, or did it seem like the car a/c’s of the 70’s & 80’s never lasted more than a single summer?”

It’s just you…
:wink:

Seriously however…my family’s first exposure to auto A/C was with an aftermarket Eaton, Yale, & Towne unit on my father’s '66 Galaxie 500. (No maintenance needed in the 6 years that my father owned that car.)

My first car was a '71 Charger, with factory air (No maintenance needed in the 3 years that I owned it.)

I replaced the Charger with a '74 Volvo, whose “factory” A/C was actually dealer-installed.
(No maintenance needed in the 7 years that I owned it.)

I could list all of my other cars, but…suffice it to say that I haven’t ever needed to do any maintenance on any of my auto A/C systems.

My 74 Olds was my first with AC and I really didn’t have any problems with it. Back then the compressors were very very good and almost lifetime units. I had similar experiences with cars after that. You might have to add a can of freon (interesting that Spellcheck doesn’t know what freon is) after four years or so but never had a compressor go before about 300K or so miles. Now my folks with Chrysler cars was another story.

A/C was one area where Detroit was far better than the imports. One could ‘hang meat’ in many '60s and '70s GMs, Chryslers, and Fords.

AC Compressors from the 70’s were extreme inefficient. You needed a V8 to have AC. Yes you could get it on a 4 banger - but it really bogged the engine down and drastically decreased performance and gas mileage.

“One could ‘hang meat’ in many '60s and '70s GMs, Chryslers, and Fords.”

Particularly GM cars, in my experience.

One summer in the early '80s, I drove limos in order to bring in some money, and I mostly drove Olds 98s, plus the occasional Caddy Fleetwood limo. The A/C in those cars was nothing short of incredible.

Additionally, I believe that GM’s rotary compressors were much more reliable (and much smoother-running) than the piston-type compressors that Chrysler used.

I agree, GM A/C was #1 in my book. Unfortunately, they had some trouble with the switchover to R134a, at least in the '96 Suburban we had. Even with the rear A/C it had difficulty cooling off in the heat of the summer (in Dallas).

Memory coming back but weren’t those Thermo King compressors, a Minnesota company?

(interesting that Spellcheck doesn’t know what freon is)

You must capitalize trade names, DuPont has a trademark on Freon.

The common name for dichlorodifluoromethane is R-12.

Lets see, Freon. Yep you’re right. Learn something here all the time.