Mitsubishi Motors North America
Encyclopedia
Mitsubishi Motors North America, Inc. is the North American operation of Mitsubishi Motors Corporation, overseeing sales, manufacturing, finance, and research and development functions. The company manufactures and sells Mitsubishi brand car
s and sport utility vehicle
s through a network of almost 700 dealers in the United States
, Canada
, Mexico
, and the Caribbean
.
It operates its administrative headquarters in Cypress, California
. Also based there are its captive finance subsidiary Mitsubishi Motors Credit of America, Inc. (MMCA), established in 1991. Mitsubishi Motors R&D of America, Inc. (MRDA) also has its Californian Research and Design Center there, while the R&D head office is in Ann Arbor, Michigan
.
MMNA's sole production facility, formerly known as Diamond-Star Motors
and then Mitsubishi Motor Manufacturing of America, is based in Normal, Illinois
, where 1,900 workers are employed building the Galant
, Eclipse
, and Endeavor
models.
sedan, and the $7,000 Cordia
and $12,000 Starion
coupe
s, followed shortly by the Mighty Max
pickup truck, and were sold through 70 dealers in 22 states.
The Diamond-Star Motors
joint venture with Chrysler in Normal, Illinois
began in 1985, as American-built cars would not be subject to the same restrictive quota
s as vehicles imported from Japan. The company sold 67,000 cars in the United States in 1987, but by the time the new factory came onstream the next year, it offered a capacity of 240,000 vehicles. With this new capacity, Mitsubishi made a fresh push to expand its American operation in 1989, increasing its sales network by 40 percent to 340 dealerships and producing its first nationwide advertising campaign.
1991 was a landmark year for Mitsubishi in the United States. It bought Chrysler's share of Diamond-Star for $100 million, and became the first Japanese owner of a U.S. car rental
agency when it purchased Value Rent-a-Car. Sales of Mitsubishi-badged vehicles reached almost 190,000.
The remainder of the 1990s provided both ups and downs for MMNA. The rising yen and a weak global economy caused a drop in production and profits, but it weathered the storm better than its Japanese competitors. However, in 1994 it was the subject of two lawsuits brought against it. The first, filed by 29 women in December 1994, accused the company of fostering a climate of sexual harassment
at its Normal, Illinois plant. Then, in April 1996 the Equal Employment Opportunity Commission
(EEOC) filed a class action suit on behalf of approximately 300 other women who worked at the plant. Mitsubishi initially denied any problems at its plant but later hired former U.S. Labor Secretary
Lynn Morley Martin
to recommend changes to its policies and practices. The 1994 suit was settled for $9.5 million in August 1997, and an agreement with the EEOC was reached later that year as well.
Mitsubishi recovered quickly after this, and while its global operations were suffering in the wake of the 1997 East Asian financial crisis, MMNA reported banner results, breaking its sales records every year between 1999 and 2002 and seeing growth of 81 percent to 345,000 vehicles, while the company improved its position in Harbour and Associates' Assembly Productivity Ranking from last to first. At this point Mitsubishi was the fastest growing auto brand in the United States.
Troubles began to emerge in 2003. One of the roots of their rapid growth was a "0–0–0" finance offer—zero percent down, zero percent interest, and nothing per month (repayments deferred for 12 months)—aimed at increasing MMNA's annual sales to 500,000 vehicles. However, numerous credit-risky buyers ended up defaulting at the end of the year's "grace period", leaving Mitsubishi with used vehicles for which they'd received no money and which were now worth less than they cost to manufacture. The company's American credit operation was forced to make a $454 million provision against its 2003 accounts as a result of these losses.
In the wake of this and other issues sales plummeted, to 243,000 in 2003, 139,000 in 2004, 124,000 in 2005, and 119,000 in 2006. New introductions have had mixed success, with the Outlander and Eclipse models showing sales growth in 2006, but the Endeavor SUV failing to meet expectations. A new Lancer
compact car
debuted in 2007, and in an effort to exploit unused capacity at its Normal, Illinois
plant more export markets for the Galant sedan are being sought..
NOTE: Puerto Rico is currently included in Central and South America region, effective from FY2008.)
Čar
Čar is a village in the municipality of Bujanovac, Serbia. According to the 2002 census, the town has a population of 296 people.-References:...
s and sport utility vehicle
Sport utility vehicle
A sport utility vehicle is a generic marketing term for a vehicle similar to a station wagon, but built on a light-truck chassis. It is usually equipped with four-wheel drive for on- or off-road ability, and with some pretension or ability to be used as an off-road vehicle. Not all four-wheel...
s through a network of almost 700 dealers in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, and the Caribbean
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
.
It operates its administrative headquarters in Cypress, California
Cypress, California
Cypress is a suburban city located in the northern region of Orange County within Southern California. Its population was 47,802 at the 2010 census.-History:...
. Also based there are its captive finance subsidiary Mitsubishi Motors Credit of America, Inc. (MMCA), established in 1991. Mitsubishi Motors R&D of America, Inc. (MRDA) also has its Californian Research and Design Center there, while the R&D head office is in Ann Arbor, Michigan
Ann Arbor, Michigan
Ann Arbor is a city in the U.S. state of Michigan and the county seat of Washtenaw County. The 2010 census places the population at 113,934, making it the sixth largest city in Michigan. The Ann Arbor Metropolitan Statistical Area had a population of 344,791 as of 2010...
.
MMNA's sole production facility, formerly known as Diamond-Star Motors
Diamond-Star Motors
Diamond-Star Motors was an automobile-manufacturing joint venture between the Chrysler Corporation and Mitsubishi Motors Corporation . The name came from the parent companies' respective logos: three diamonds and a pentastar...
and then Mitsubishi Motor Manufacturing of America, is based in Normal, Illinois
Normal, Illinois
Normal is an incorporated town in McLean County, Illinois, United States. It had a population of 52,497 as of the 2010 census. Normal is the smaller of two principal municipalities of the Bloomington-Normal metropolitan area...
, where 1,900 workers are employed building the Galant
Mitsubishi Galant
The first generation of the car, initially known as the Colt Galant, was released in December 1969. The design was dubbed "Dynawedge" by Mitsubishi, referring to the influence of aerodynamics on the silhouette. Three models were available, powered by the new 'Saturn' engine in 1.3 or 1.5 L ...
, Eclipse
Mitsubishi Eclipse
The Mitsubishi Eclipse was a coupe that was in production since 1989 for left hand drive traffic markets. According to Mitsubishi, the car was named after an 18th century English racehorse which won 26 races, and has also been sold as the Eagle Talon and the Plymouth Laser captive imports through...
, and Endeavor
Mitsubishi Endeavor
The Mitsubishi Endeavor is a mid-size crossover SUV built by Mitsubishi Motors at their manufacturing facility in Normal, Illinois. Based on the PS platform, it was the first vehicle built under Mitsubishi's "Project America", a program aimed at introducing vehicles for North America without having...
models.
History
MMNA was formed in 1981 after tensions arose between Mitsubishi and its then U.S. import partner, the Chrysler Corporation over conflicts in the international subcompact market, leading the ambitious Japanese company to establish its own sales network. The first year's allocation of 30,000 vehicles in 1982 were the $6,500 TrediaMitsubishi Tredia
The Mitsubishi Tredia was a subcompact sedan built by Mitsubishi Motors from 1982 to 1990. Its name is supposedly derived from Mitsubishi's "Three Diamonds" logo...
sedan, and the $7,000 Cordia
Mitsubishi Cordia
The Mitsubishi Cordia is a compact hatchback-coupé that was built by Mitsubishi Motors from 1982 to 1990. Its name is supposedly an amalgam of "cordorite" and "diamonds" from Mitsubishi's Three Diamonds logo...
and $12,000 Starion
Mitsubishi Starion
The Mitsubishi Starion is a two-door, turbocharged four-cylinder rear-wheel drive four-seat sports car that was in production from 1982 to 1989. It was also marketed in North America as the Conquest under the Chrysler, Dodge, and Plymouth names; both the Starion and Conquest came to an end in 1989...
coupe
Coupé
A coupé or coupe is a closed car body style , the precise definition of which varies from manufacturer to manufacturer, and over time...
s, followed shortly by the Mighty Max
Mitsubishi Triton
The Mitsubishi Triton is a compact pickup truck produced by Mitsubishi Motors. It was originally known as the Mitsubishi Forte in Japan from 1978 to 1986, when the name was discontinued in favour of the Strada. In the United States two captive imports of the Forte were sold by the Chrysler...
pickup truck, and were sold through 70 dealers in 22 states.
The Diamond-Star Motors
Diamond-Star Motors
Diamond-Star Motors was an automobile-manufacturing joint venture between the Chrysler Corporation and Mitsubishi Motors Corporation . The name came from the parent companies' respective logos: three diamonds and a pentastar...
joint venture with Chrysler in Normal, Illinois
Normal, Illinois
Normal is an incorporated town in McLean County, Illinois, United States. It had a population of 52,497 as of the 2010 census. Normal is the smaller of two principal municipalities of the Bloomington-Normal metropolitan area...
began in 1985, as American-built cars would not be subject to the same restrictive quota
Import quota
An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....
s as vehicles imported from Japan. The company sold 67,000 cars in the United States in 1987, but by the time the new factory came onstream the next year, it offered a capacity of 240,000 vehicles. With this new capacity, Mitsubishi made a fresh push to expand its American operation in 1989, increasing its sales network by 40 percent to 340 dealerships and producing its first nationwide advertising campaign.
1991 was a landmark year for Mitsubishi in the United States. It bought Chrysler's share of Diamond-Star for $100 million, and became the first Japanese owner of a U.S. car rental
Car rental
A car rental or car hire agency is a company that rents automobiles for short periods of time for a fee...
agency when it purchased Value Rent-a-Car. Sales of Mitsubishi-badged vehicles reached almost 190,000.
The remainder of the 1990s provided both ups and downs for MMNA. The rising yen and a weak global economy caused a drop in production and profits, but it weathered the storm better than its Japanese competitors. However, in 1994 it was the subject of two lawsuits brought against it. The first, filed by 29 women in December 1994, accused the company of fostering a climate of sexual harassment
Sexual harassment
Sexual harassment, is intimidation, bullying or coercion of a sexual nature, or the unwelcome or inappropriate promise of rewards in exchange for sexual favors. In some contexts or circumstances, sexual harassment is illegal. It includes a range of behavior from seemingly mild transgressions and...
at its Normal, Illinois plant. Then, in April 1996 the Equal Employment Opportunity Commission
Equal Employment Opportunity Commission
The U.S. Equal Employment Opportunity Commission is an independent federal law enforcement agency that enforces laws against workplace discrimination. The EEOC investigates discrimination complaints based on an individual's race, color, national origin, religion, sex, age, perceived intelligence,...
(EEOC) filed a class action suit on behalf of approximately 300 other women who worked at the plant. Mitsubishi initially denied any problems at its plant but later hired former U.S. Labor Secretary
United States Secretary of Labor
The United States Secretary of Labor is the head of the Department of Labor who exercises control over the department and enforces and suggests laws involving unions, the workplace, and all other issues involving any form of business-person controversies....
Lynn Morley Martin
Lynn Morley Martin
Lynn Morley Martin is a businesswoman and former United States politician.-Political career:Born in Evanston, Illinois, she served as a member of the Winnebago County Board before she served in the Illinois House of Representatives, Illinois Senate, and the U.S. House of Representatives, where she...
to recommend changes to its policies and practices. The 1994 suit was settled for $9.5 million in August 1997, and an agreement with the EEOC was reached later that year as well.
Mitsubishi recovered quickly after this, and while its global operations were suffering in the wake of the 1997 East Asian financial crisis, MMNA reported banner results, breaking its sales records every year between 1999 and 2002 and seeing growth of 81 percent to 345,000 vehicles, while the company improved its position in Harbour and Associates' Assembly Productivity Ranking from last to first. At this point Mitsubishi was the fastest growing auto brand in the United States.
Troubles began to emerge in 2003. One of the roots of their rapid growth was a "0–0–0" finance offer—zero percent down, zero percent interest, and nothing per month (repayments deferred for 12 months)—aimed at increasing MMNA's annual sales to 500,000 vehicles. However, numerous credit-risky buyers ended up defaulting at the end of the year's "grace period", leaving Mitsubishi with used vehicles for which they'd received no money and which were now worth less than they cost to manufacture. The company's American credit operation was forced to make a $454 million provision against its 2003 accounts as a result of these losses.
In the wake of this and other issues sales plummeted, to 243,000 in 2003, 139,000 in 2004, 124,000 in 2005, and 119,000 in 2006. New introductions have had mixed success, with the Outlander and Eclipse models showing sales growth in 2006, but the Endeavor SUV failing to meet expectations. A new Lancer
Mitsubishi Lancer
The Mitsubishi Lancer is a family car built by Mitsubishi Motors. It has been known as the Colt Lancer, Dodge/Plymouth Colt, Chrysler Valiant Lancer, Chrysler Lancer, Eagle Summit, Hindustan Lancer, Soueast Lioncel, Mitsubishi Carisma, and Mitsubishi Mirage in various countries at different times,...
compact car
Compact car
A compact car , or small family car , is a classification of cars which are larger than a supermini but smaller than or equal to a mid-size car...
debuted in 2007, and in an effort to exploit unused capacity at its Normal, Illinois
Normal, Illinois
Normal is an incorporated town in McLean County, Illinois, United States. It had a population of 52,497 as of the 2010 census. Normal is the smaller of two principal municipalities of the Bloomington-Normal metropolitan area...
plant more export markets for the Galant sedan are being sought..
Production
| Year | Eclipse/ Eclipse Spyder Mitsubishi Eclipse The Mitsubishi Eclipse was a coupe that was in production since 1989 for left hand drive traffic markets. According to Mitsubishi, the car was named after an 18th century English racehorse which won 26 races, and has also been sold as the Eagle Talon and the Plymouth Laser captive imports through... |
Endeavor Mitsubishi Endeavor The Mitsubishi Endeavor is a mid-size crossover SUV built by Mitsubishi Motors at their manufacturing facility in Normal, Illinois. Based on the PS platform, it was the first vehicle built under Mitsubishi's "Project America", a program aimed at introducing vehicles for North America without having... |
Galant Mitsubishi Galant The first generation of the car, initially known as the Colt Galant, was released in December 1969. The design was dubbed "Dynawedge" by Mitsubishi, referring to the influence of aerodynamics on the silhouette. Three models were available, powered by the new 'Saturn' engine in 1.3 or 1.5 L ... |
Chrysler Sebring/ Dodge Stratus Chrysler Sebring The Chrysler Sebring is a line of mid-size cars that was sold by Chrysler from 1995 to 2010.The Sebring came in three generations. The first, from 1995 to 2000, was available first only as a coupe and starting in 1996 as a convertible. The two body designs did not share many components nor any... |
Total |
|---|---|---|---|---|---|
| 2000 | 77,795 | - | 104,313 | 40,282 | 222,390 |
| 2001 | 70,565 | - | 94,820 | 28,359 | 193,744 |
| 2002 | 75,323 | 10 | 100,760 | 28,140 | 204,233 |
| 2003 | 25,974 | 49,987 | 53,455 | 28,443 | 156,859 |
| 2004 | 10,433 | 19,448 | 39,841 | 28,920 | 98,642 |
| 2005 | 37,399 | 22,403 | 29,337 | - | 89,139 |
| 2006 | 39,602 | 18,097 | 35,541 | - | 93,240 |
| 2007 | 24,333 | 13,465 | 37,729 | - | 75,527 |
| 2008 | 13,814 | 2,316 | 27,747 | - | 43,877 |
| 2009 | 2,278 | 5,401 | 15,017 | - | 22,696 |
Sales
| Year | United States | Canada | Mexico | Puerto Rico | Total |
|---|---|---|---|---|---|
| 2000 | 314,417 | - | - | - | - |
| 2001 | 322,393 | - | - | - | - |
| 2002 | 345,111 | 3,223 | - | 11,815 | 360,149 |
| 2003 | 243,592 | 12,786 | 6,044 | 10,490 | 272,912 |
| 2004 | 139,270 | 10,900 | 11,911 | 12,230 | 174,311 |
| 2005 | 115,168 | 10,293 | 15,568 | 14,923 | 155,952 |
| 2006 | 124,508 | 11,801 | 16,868 | 11,046 | 164,223 |
| 2007 | 124,429 | 17,790 | 17,710 | 11,963 | 171,892 |
| 2008 | 84,010 | 18,874 | 16,100 | - | 118,984 |
| 2009 | 53,775 | 20,062 | 13,805 | - | 87,642 |
NOTE: Puerto Rico is currently included in Central and South America region, effective from FY2008.)
External links
- Mitsubishicars.com, official site