Mitsubishi, Isuzu seen as candidates for closure in US

[ragingfish]

Quote »Mitsubishi, Isuzu seen as candidates for closure in USDETROIT, United States (AFP) - Automakers are locked in a cutthroat battle for market share in the US and some say two brands -- Mitsubishi and Isuzu -- are the leading candidates for closure."Right now, they're sort of alone on a peninsula that's getting smaller," said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan.Through July, Mitsubishi - darling of the hipster set just three years ago - controlled just 0.7 percent of the U.S. light vehicle market, according to Autodata Inc. That's a 32.6 percent reduction from the level it enjoyed after the first seven months of 2004.And Isuzu, a colorful player in America's favorite segment, SUVs, is almost off the radar. Its 0.1 percent share of the market represents a 51.3 percent decline from last year.This runs counter to the overall trend for Japan-based automakers. In 2004, their share of the U.S. car market grew to 39 percent - up from 37 percent in 2003, according to Merrill Lynch. Their share of the light truck market also grew two percentage points, to 24 percent."The issue going forward in the passenger car market will be working for growth in the luxury segment," Merrill Lynch analyst John Casesa wrote in a recent report.Neither Mitsubishi nor Isuzu have true luxury offerings in their pipelines. But both are struggling to churn out fresh products against a backdrop of instability.Mitsubishi is in the midst of a 24-month rollout that will see the introductions of six new or re-engineered vehicles designed to establish the brand as sporty and fun. The racy Eclipse was first to debut in May, and Raider - a compact sport/utility truck - is scheduled to arrive in showrooms next month.They will be followed by a new Spyder convertible, a redesigned Outlander SUV, a refreshed Evo sports sedan and the successor to Lancer.This gives Dave Schembri, Mitsubishi's new executive vice president of sales and marketing, reason to hope."I wouldn't have come here (from Mercedes Benz) unless I saw the kind of future that has the kind of promise that I think it does," Schembri said.He admits the company's finances are shaky. Still stinging from a former campaign that saw Mitsubishi pump up sales by financing high-risk customers, it recorded a second-quarter operating loss of 89.8 million dollars in North America.But that represented an improvement from the 174.5 million dollar loss it recorded in the second quarter of 2004. Marketing cost reductions and lower warranty claims sparked by quality improvements saved the company 56 million dollars.And when DaimlerChrysler AG balked at pumping more money into Mitsubishi - with which is has several joint ventures - its Japan-based parent, a conglomerate that sells products ranging from electronics to machine tools, rode to the rescue."I like to compare our situation more with Nissan or Chrysler, five or six years ago," Schembri said. "(Their recoveries) all began with new product, and new product that was more revolutionary than evolutionary."Nissan's revival began with the introduction of the widely acclaimed Altima family car. And Chrysler restored its reputation as a design leader with the rollout of its cutting-edge 300 sedan.Isuzu appears more unstable because its lineup has thinned to two model ranges - midsize SUV and, new-for-2006, compact pickup. This time three years ago, it had three nameplates with more than 5,000 sales each. Through the first seven months of this year, it had just one - the Ascender.And Isuzu's total light vehicle sales are just over one third of its 2002 levels."I suppose they'll just muddle along," Cole said, adding he believes Isuzu could vanish from the light vehicle landscape."It's so tough for the high-volume brands, for the marginal brands, it's even more difficult," he said. "The bar keeps being raised by the competitive environment. The real question is, if they can't be really profitable, where are they going to get the money to continue their business?"Isuzu officials have heard this argument before. And they dismiss it."That's a comment that we've heard repeatedly over a number of years," said spokesman Chip Letzgus. "All I can tell you is Isuzu has no intention of leaving the U.S."This week, it threw the gauntlet down by offering its new i-250 and i-350 pickups with a seven-year/75,000-mile powertrain warranty - the most comprehensive program in the segment.As for Mitsubishi, Cole warns that the money from its parent company may not be enough."Mitsubishi has come up with a bundle -- but at some point, the financial people could say, 'We're just putting good money after bad,'" he said.Source: http://news.yahoo.com/s/afp/20...osureRagingCommentary: I can see why either would fade...they are both struggling. But if I had to pick, I'd put money on Isuzu being the first to go. With only two models, one of them a blatant Canyon/Colorado rebadge, and the other a SUV in a time when gas prices are through the roof, there's absolutely NO point to their presence.

[scherry2]

Quote, originally posted by ragingfish »RagingCommentary: I can see why either would fade...they are both struggling. But if I had to pick, I'd put money on Isuzu being the first to go. With only two models, one of them a blatant Canyon/Colorado rebadge, and the other a SUV in a time when gas prices are through the roof, there's absolutely NO point to their presence.General Motors is part owner in Isuzu so I wouldn't put my money on Isuzu going anywhere to soon. they build 1 ton delivery trucks in Janesville, Wisconsin in the same plant they build the 4500 series GM Top Kick and the Kodiak,along with the Gas guzzling Suburban and Tahoe.

[ToolGuy]

Mitsu is getting a new pick up from Dodge too. A re-badege Dodge Dakota. Doubt this will save them but this pickup and the new Eclipse may help. Mitsu is giving us a hard time with the amount of tools that need to be purchased per dlr to fix he re-badged Dakota!