Mitsubishi ups the ante

Controversy has dogged Mitsubishi over the past 12 months. Motoring editor ALASTAIR SLOANE reports on its latest attempt to win back confidence.

First it was DaimlerChrysler grumbling about the debt it was going to inherit in buying 34 per cent of Mitsubishi Motors Corporation.

Soon after, Mitsubishi's head office in Japan admitted it had been telling porkies about vehicle recalls.

The Japanese Government was so grumpy about that one it forced Mitsubishi to delay the launch of the high-performance Lancer Evolution VII as punishment.

Then Mitsubishi's American division was sprung for fiddling sales figures. It was selling cars to people who didn't exist, using such obviously dodgy names as Enzo Ferrari, Anna Kornacova and Supa Mann.

Next came more controversy over the future of Mitsubishi's assembly plant in Adelaide. Would it close, or would it be rationalised, doing more for less?

Company president Takashi Sonobe said he would decide in June. "We need to see if the plant would be worth further investment for manufacturing new models before deciding its destiny," he said. The smart money is on rationalisation.

Now Mitsubishi New Zealand, in damage control mode since the home office fiasco over recalls and facing plummeting sales, has set out to talk up the Mitsubishi name.

It offered a new five-year, 150,000km warranty on cars and light commercials bought in May and June.

Such a fresh guarantee hasn't been seen in the popular market since 1992, when Mitsubishi became the first carmaker in New Zealand to increase the standard warranty from one year to three years or 100,000km.

"We believe this is the first time any new vehicle franchise has offered such a warranty," said managing director John Leighton.

"It is important customers recognise the confidence we have in our vehicles and that they are taking no chances when buying a Mitsubishi."

The two-month promotion also included $1000 of free fuel and free servicing for three years, or 60,000km.

But will the inducements stop at the end of June? It largely depends on sales, but it is understood Leighton has talked to Japan about continuing the extended warranty.

Leighton also unveiled a new four-wheel-drive Pajero, powered by a non-direct-injection 3.5-litre V6 engine and priced at $64,500.

"We are directly targeting the segment leaders with this vehicle. The Pajero is No 2 behind the Toyota Prado. Our aim this year is to take the No 1 slot."

A new deal with motorsport specialist Ralliart to extend the sports sedan range is also aimed at boosting sales. So is a new finance service.

A limited-edition $49,500 V6 Galant will be prepared in Wellington. It will come with reworked suspension, body kit, performance tyres and carry Ralliart livery.

"Mitsubishi Ralliart is one of the world's leading rally car brands and we want to extend its application in New Zealand beyond the Lancer Evolution series," said Leighton.

"We have arguably the most comprehensive and powerful group of performance sedans in New Zealand, starting with the Evo and including the Galant VR-4 and Diamante VRX."

Mitsubishi Diamond Finance is backed by the New Zealand arm of DaimlerChrysler. "It is the first tangible result in this country of the international tie-up between DaimlerChrysler and Mitsubishi Motors Corp," said Leighton. "We have over 60 dealers who have worked with a variety of finance companies over the years, but needed a single umbrella for financing," said Leighton.

"We believe this new facility will enable them to become more competitive in a market where vehicle leasing, in particular, is growing quickly."

Leighton wants Mitsubishi's overall sales to grow even quicker. So far this year they are down significantly on previous years.

In 1999 in New Zealand, according to Land Transport Safety Authority figures, Mitsubishi sold 5889 new cars and commercials. In 2000, in a marginally better market, it sold 4804. That's a drop against the trend over 12 months of 1085 new vehicles, or about 20 a week.

Last year to the end of April, Mitsubishi sold 1830 new vehicles. At the end of April this year, it had sold 1070 - down 760 vehicles, or about 48 a week, over the corresponding four-month period.

In the top 20 new vehicles of 1999, the Galant was placed 7, the Lancer 8 and the Diamante 13. In 2000, the Galant was 8, the Diamante 13 and the Lancer 15.

In 1999, Mitsubishi sold 1624 Lancers, 1701 Galants and 1220 Diamantes. In 2000, it sold 1052 Lancers, 1509 Galants and 1245 Diamantes.

The Lancer is a good car but it is quickly becoming anonymous - another face in the crowd.

What is also hurting Mitsubishi is the absence of a small car. It phased out the popular Mirage a couple of years ago, selling 23 in 1999 and one last year. It now wishes it hadn't.