MITSUBISHI

What’s Up With Mitsubishi?

March 2, 2020 by admin Leave a Comment

2018 Mitsubishi Outlander Sport — The Outlander Sport is one of three Mitsubishi utility vehicles.

Go to Specifications: Mirage | Outlander Sport | Eclipse Cross | Outlander

As an early supplier of small vehicles to the Chrysler Corporation, Mitsubishi Motors has sold cars on its own stateside for nearly four decades. At one time, the company was a notable player in the market and even had a manufacturing plant in Normal, Illinois, for building its vehicles – originally in partnership with Chrysler, then on its own.

But much has changed since. The DiamondStar partnership with Chrysler is long gone and, likewise, the Illinois manufacturing plant is now owned by Rivian, who will begin building electric trucks and SUVs there by the end of 2020. Consequently, all current Mitsubishi models are imported from Japan.

Renault-Nissan-Mitsubishi Alliance

Even Mitsubishi’s structure has changed as the company is now controlled by Nissan and it has become the third partner in “the Alliance,” which also includes Renault. In the U.S., we have yet to see Mitsubishi acquire Nissan- or Renault-sourced vehicles to add to its product line, as the Alliance is in jeopardy and Nissan itself seeks to distance itself from the Carlos Ghosn era.

These days, Mitsubishi has nearly completed its transition to an all-SUV maker, with three distinct models and one car line serving the American consumer as well as one plug-in hybrid electric vehicle. Its famed Lancer and Evo compacts are long gone as is the i-MiEV, the company’s early experiment in full electrification.

2020 Mitsubishi Product Line

For 2020, Mitsubishi has Eclipse Cross, Outlander Sport, and Outlander utility vehicles as well as the tiny Mirage, a subcompact sedan/hatchback offering. Although there is nothing remarkable about the four models, each one comes with many of the tech and safety features customers want, along with a robust warranty plan to keep customers in the fold.

Looking ahead, it appears Mitsubishi will bring back the Evolution, its top-end Lancer model, but perhaps only in Evo form. Also, the company is developing a larger utility vehicle to slot above the Outlander, although the next-generation Outlander itself will have a larger footprint. Other changes include electrifying the entire lineup, which means PHEV and pure EV variants of every model should be offered.

In all, Mitsubishi is exactly where the company wants to be at this point, with new products on the way. That Mitsubishi has managed to survive in a highly competitive market is quite a feat. We’ll see what the next chapter brings and whether the story continues to unfold positively for this Japanese brand

Go to the Top

2020 Mitsubishi Mirage Specifications

Mitsubishi	2020 Mirage
Segment	Subcompact Car
Price Range	$13,995 to $17,295
Destination Charge	$995
Standard Engine	1.2-liter, I3
Horsepower	78 @ 6,000 rpm
Torque (lb.-ft.)	74 @ 4,000 rpm
Transmission	5-speed manual or CVT
Seating	5
Curb Weight (pounds)	2,095 to 2,128
Wheelbase (inches)	96.5
Length (inches)	149.4
Width (inches)	65.6
Height (inches)	59.4
Headroom (f,r…inches)	39.0, 37.2
Legroom (f,r…inches)	41.7, 34.2
Shoulder room (f,r…inches)	51.7, 51.0
Hip room (f,r…inches)	48.8, 46.4
Storage (cubic feet)	17.1, 47.0
Gross vehicle weight rating (pounds)	3,020
Towing (pounds)	NR
Payload (pounds)	NR
Fuel	regular
Fuel Tank (gallons)	9.2
EPA Fuel MPG (city/highway/combined)	36/43/39
Manufacturing Plant	Japan

Data compiled by Tom Keegan. Specifications supplied by the manufacturer.

Go to the Top

2020 Mitsubishi Outlander Sport Specifications

Mitsubishi	2020 Outlander Sport
Segment	Compact SUV
Price Range	$22,595 to $26,995
Destination Charge	$1,195
Standard Engine	2.0-liter, I4
Horsepower	148 @ 6,000 rpm
Torque (lb.-ft.)	145 @ 4,200 rpm
Transmission	CVT
Seating	5
Curb Weight (pounds)	3,120
Wheelbase (inches)	105.1
Length (inches)	171.9
Width (inches)	71.3
Height (inches)	64.8
Headroom (f,r…inches)	39.4, 37.9
Legroom (f,r…inches)	41.6, 36.3
Shoulder room (f,r…inches)	56.2, 55.5
Hip room (f,r…inches)	52.1, 51.6
Storage (cubic feet)	21.7, 49.5
Gross vehicle weight rating (pounds)	4,343
Towing (pounds)	NR
Payload (pounds)	1,223
Fuel	regular
Fuel Tank (gallons)	16.6
EPA Fuel MPG (city/highway/combined)	24/30/27
Manufacturing Plant	Japan

Data compiled by Tom Keegan. Specifications supplied by the manufacturer.

Go to the Top

2020 Mitsubishi Eclipse Cross Specifications

Mitsubishi	2020 Eclipse Cross
Segment	Subcompact SUV
Price Range	$22,995 to $28,745
Destination Charge	$1,195
Standard Engine	1.5-liter, turbo I4
Horsepower	152 @ 5,500 rpm
Torque (lb.-ft.)	184 @ 2,000-3,500 rpm
Transmission	CVT
Seating	5
Curb Weight (pounds)	3,285
Wheelbase (inches)	105.1
Length (inches)	173.4
Width (inches)	71.1
Height (inches)	66.3
Headroom (f,r…inches)	39.5, 37.3
Legroom (f,r…inches)	40.9, 35.3
Shoulder room (f,r…inches)	56.2, 55.1
Hip room (f,r…inches)	53.0, 52.0
Storage (cubic feet)	22.6, 48.9
Gross vehicle weight rating (pounds)	4,630
Towing (pounds)	1,500
Payload (pounds)	NR
Fuel	regular
Fuel Tank (gallons)	16.6
EPA Fuel MPG (city/highway/combined)	26/29/27
Manufacturing Plant	Japan

Data compiled by Tom Keegan. Specifications supplied by the manufacturer.

Go to the Top

2020 Mitsubishi Outlander Specifications

Wheelbase (inches)105.1

Mitsubishi	2020 Outlander
Segment	Midsize SUV
Price Range	$24,895 to $33,745
Destination Charge	$1,195
Engine No. 1	2.4-liter, I4
Horsepower	166 @ 6,000 rpm
Torque (lb.-ft.)	162 @ 4,200 rpm
Transmission	CVT
Engine No. 2	3.0-liter, V6
Horsepower	224 @ 6,250 rpm
Torque (lb.-ft.)	215 @ 3,750 rpm
Transmission	6-speed automatic
Seating	7
Curb Weight (pounds)	3,329 to 3,582
Length (inches)	184.8
Width (inches)	71.3
Height (inches)	67.3
Headroom (f,r…inches)	40.6, 38.4, 35.7
Legroom (f,r…inches)	40.9, 37.3, 28.2
Shoulder room (f,r…inches)	56.4, 56.0, 50.4
Hip room (f,r…inches)	52.6, 51.9, 39.4
Storage (cubic feet)	10.3, 34.2, 63.3
Gross vehicle weight (pounds)	4,861 to 5,087
Towing (pounds)	1,500 (I4); 3,500 V6
Payload (pounds)	NR
Fuel	regular
Fuel Tank (gallons)	16.6
EPA Fuel MPG (city/highway/combined)	25/30/27 (I4); 20/27/22 (V6)
Manufacturing Plant	Kurashiki, Okayama, Japan

Go to the Top

Data compiled by Tom Keegan. Specifications supplied by the manufacturer.

See Also — The Rise and Fall of Mitsubishi

Ghosn With the Wind: Nissan’s Former CEO Flees Japan, Now Resides in Lebanon

January 3, 2020 by admin Leave a Comment

Carlos Ghosn before his downfall. Photo courtesy of Nissan News.

Talk about a story filled with intrigue!

Former Nissan CEO Carlos Ghosn (pronounced Gone), under the watchful eyes of Japanese authorities, secretly left his home late last month and made his way to Lebanon, where he has taken residence. The executive’s bold move, certain to become the script for a Hollywood thriller, was illegal. That said, Ghosn insists he had no choice as he found the Japanese judicial system was “rigged” against him.

Ghosn’s story starts in 1999, when he crafted the alliance that united France’s Renault automobile group with Nissan Motors. This unlikely alliance effectively saved Nissan, while allowing Renault to tap its partner for a variety of vehicles. Later, Mitsubishi was added to the alliance, effectively forming the largest alliance of its kind in the world.

Although the two principal manufacturers benefited by working together, Ghosn was intent on bringing the companies closer together, likely through a full merger. Apparently, that move did not sit well with Nissan executives (perhaps valuing their independence), who then allegedly plotted to remove Ghosn from his position. Charges of financial impropriety were lodged against him and both companies removed Ghosn from their executive roles.

Meanwhile, Japanese authorities jailed Ghosn with the intent of convicting him of a series of crimes, which likely would have kept him Incarcerated until his death. The Japanese legal system is quite different from what we’re used to in the West, particularly in the United States, where an individual is considered innocent until proven guilty.

In Japan, an individual may stay in jail for months, if not years, until his trial is completed. Ghosn was not allowed attorney representation early on, and even then the contact was always limited. Twice he was released on bail, following arrest, the second time confined to his home in Japan under the watchful eyes of the authorities. He was also restricted from seeing his family, including his wife.

Just how Ghosn managed to leave Japan for Lebanon remains a mystery. A rumor that he was packed in a musical instrument box and shipped to Lebanon with a stop in Turkey, was one of the first stories to surface. The plot thickened when it appeared that the executive’s own family was involved, an allegation Ghosn later denied. At this point, we do not know the complete details of his whirlwind escape, but they will eventually emerge.

Beyond his uncanny escape and emergence in Lebanon, Ghosn will now fight back by settling some old scores. Expect the former executive to name names and point out misdeeds for both Nissan and Renault executives. Published reports indicate that the information he plans to share could prove devastating, especially to Nissan, which has been losing money and market share over the past few years.

Moreover, what’s also likely to be scrutinized is Japan’s legal system, which routinely jails individuals as prosecutors enjoy a conviction rate above 99 percent. That system essentially ensured conviction for Ghosn, even as he insisted upon his innocence.

Another result of Ghosn’s new-found freedom is the Renault-Nissan alliance itself – depending on what Ghosn shares — as its future may be in peril. Regardless, the fallout will be enormous as corporate and government officials wrestle with his escape and the subsequent detailing of Ghosn’s allegations.

Likely, Ghosn will support his charges with witnesses and perhaps documentation, both of which could make this story front pages news for a long time.

As for Ghosn’ future, it likely lies in Lebanon as this Middle Eastern country does not have an extradition treaty with Japan. Ghosn also has French and Brazilian passports, but they’re in the hands of his attorney in Japan. On Thursday, Interpol delivered a “red notice” to Lebanon which is “a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.” It isn’t an arrest warrant, but it does mean Lebanese authorities will interview Ghosn to get his side of the story in this highly charged affair.

See Also — Top Automotive Stories of 2019

Car Manufacturers: Who Owns What?

August 31, 2019 by admin 2 Comments

This Buick Regal TourX was developed by Opel. Opel, once owned by GM,
is now a subsidiary of France’s PSA Groupe.

The global auto industry consists of dozens of brand names, but not all are marketed throughout the world. Opel is popular in Europe, but it is not sold in North America. Suzuki cars are no longer sold in the United States, but its Maruti Suzuki brand is a top seller in India. Industry consolidation has united or forged alliances for several car manufacturers and brands, including some owned by rival automakers.

General Motors Company

This Detroit, Mich., company has been around for more than 100 years. For decades, it was the world’s largest manufacturer of passenger vehicles since surpassed by Volkswagen and Toyota. GM’s four core North American brands are Cadillac, Buick, GMC, and Chevrolet. The company used to operate Saturn, Oldsmobile, Saab, Hummer, and Pontiac. Its other subsidiaries include Holden and GM Korea (formerly Daewoo), a joint venture with SAIC Motor, a Chinese company, and partnerships with other Chinese concerns. GM used to own Vauxhall and Opel but sold these two European brands to Groupe PSA in 2017.

Volkswagen Group

Based in Stuttgart, Germany, Volkswagen owns or has a stake in 12 brands including its eponymous Volkswagen moniker. It also owns Audi, Lamborghini, Porsche, Bentley, Bugatti, Skoda, and SEAT. It previously had a stake in Suzuki and joint ventures with two Chinese automakers. Volkswagen also owns Ducati, a motorcycle manufacturer, and MAN, a commercial vehicle brand.

The Plymouth brand is gone, but this 1964 Belvedere reminds us of what once was.

Fiat Chrysler Automobiles

Fiat Chrysler Automobiles represents the merger of two well-established automotive manufacturers. Its North American brands include Chrysler, Dodge, Jeep, Ram, and Mopar. In the US, it also manages the Fiat and Alfa Romeo brands. Chrysler previously owned several other brands, including Plymouth, Imperial, Eagle, and DeSoto. Other FCA properties include Ferrari and Maserati. The automaker has partnerships or stakes in companies based in China, Turkey, and India.

Toyota Motor Corporation

Toyota and Lexus are the two North American brands managed by the Toyota Motor Corporation, a Japanese business. From 2003 to 2016, Toyota also operated the Scion brand. The company is one of the largest conglomerates in the world, an entity with stakes or affiliate agreements with hundreds of companies. Toyota has a controlling interest or a stake in several automotive brands including Daihatsu, Hino Motors, Noble Automotive, Subaru, and Isuzu.

BMW AG

The Germany-based BMW AG entity is best known for producing BMW brand vehicles. It also owns Mini, a British brand it obtained in 1994. In 1998, BMW acquired Rolls-Royce Motor Cars, another British marque. The company also produces motorcycles under the BMW name.

Renault-Nissan-Mitsubishi Alliance

Formerly known as the Renault-Nissan Alliance, the current set up now includes Mitsubishi. Originally established in 1999 whereby Renault and Nissan have investments in each other, Mitsubishi joined in 2017 when Nissan took a stake in it. Today the alliance is a strategic partnership that enables these companies to partner for vehicle development. Besides the three monikers, there are other brands associated with the alliance: Alpine, Dacia, Datsun, Infiniti, Lada, Renault Samsung Motors, and Venucia. The alliance also has stakes in or partnerships with Daimler, AvtoVAZ, and China’s Dongfeng Motor.

This Mini Countryman is a British model built by a German manufacturer.

Ford Motor Company

Besides the Ford brand, this Dearborn, Mich., car manufacturer owns Lincoln and previously had Mercury before shutting down the latter in 2011. The company has shares in Mazda and Aston Martin, and previously owned Jaguar, Land Rover, and Volvo. Other Ford partnerships include with Brazil’s Troller, an SUV manufacturer, China’s Jiangling Motors, and Changan Ford.

Daimler AG

German car manufacturer Daimler’s best-known brand is Mercedes-Benz. The company also produces Smart brand vehicles, Mercedes-AMG performance models, and owns the ultra-luxury Maybach marque. Daimler is heavily invested in commercial vehicles with Freightliner, Mitsubishi Fuso, Thomas Built Buses, and Setra under its control. Daimler also has shares in the Beijing Automotive Group and MV Agusta.

This Infiniti QX30 is the result of a partnership between Nissan and Daimler. The tiny hatchback shares its platform and key components with a Mercedes-Benz model.

Hyundai and Kia

Hyundai and Kia are a pair of South Korean car manufacturers, with both companies comprising the Hyundai Kia Automotive Group. That group formed in 1998 when Hyundai gained a controlling interest in Kia. Hyundai’s share now stands at about 33 percent, but the alliance continues. Hyundai, Kia, and Genesis are the three brands associated with this group.

Cooperation and Collaboration

Apart from outright stakes or full partnerships, car manufacturers will often collaborate to build components or explore new technologies. It’s a cost-saving move that can benefit the consumer through shared expenses spread across more vehicle lines. We’ll see more of this in the coming years, especially as the cost of developing autonomous and electric vehicles become too prohibitive for most manufacturers to undertake alone.

Fiat Chrysler Renault Merger Talk Heightens

May 28, 2019 by admin 5 Comments

A blockbuster merger of automotive manufacturers may produce the world’s largest automaker, especially if two outside automakers are also brought in. Fiat Chrysler, itself the result of a 2014 merger between European and North American manufacturers may soon tie in with Renault, the French automaker.

Renault is currently reviewing an offer from Fiat Chrysler to merge the two companies with each taking a 50 percent stake in the other. FCA produced 4.8 million vehicles last year to Renault’s 3.9 million, for a combined 8.7 million units. However, Renault is worth 10 percent more than FCA, which means the latter will supply more cash to even the transaction. Renault is worth more in part because of its investment in an alliance with Nissan and Mitsubishi.

Marchionne, the Capital Junkie

A Fiat Chrysler merger with another automaker is something the late Sergio Marchionne insisted must happen to ensure FCA’s long-term survival. The former CEO and Chairman of FCA died unexpectedly last year, never seeing his dream fulfilled. However, it was Marchionne who outlined in his seminal 2015 report, “Confessions of a Capital Junkie,” industry consolidation.

Specifically, Marchionne explained that consolidation is the key to remedying the destruction of capital. In particular, he noted that both regulatory- and consumer-driven improvements such as tighter emissions controls, new powertrains, safety upgrades, infotainment services, and the push to autonomous drive, are expenses difficult for manufacturers to bear, especially those with a lower sales threshold. Further, Marchionne indicated manufacturers would need to sell at least 6 million vehicles annually to remain profitable, something they could accomplish through either a merger, acquisition or by means of a partnership, such as an alliance.

With a combined 8.7 million annual units (assuming the combined entity could maintain its momentum), Fiat Chrysler Renault would easily pass Marchionne’s threshold. However, it’ll take years for real cost savings to kick in as the new entity gradually merges platforms, shares powertrains, and utilizes technologies across the affected brands.

Jeep is the big prize FCA brings to a Renault merger.

FCA and Renault Brands

For FCA, the automaker brings with it several brands, including Jeep, Ram, Chrysler, and Dodge, serving North America primarily. Fiat, Alfa Romeo, and Maserati are especially strong in Europe. As for Ferrari, the Italian sports car brand is now a separate entity and would not be included in the deal.

As for the French automaker, it brings the Renault, Dacia, and Lada brands to the merger. It also owns the Alpine sports car marque and has an 80-percent stake in Renault Samsung Motors, a Korean manufacturer.

By default, Nissan and Mitsubishi are also included as Renault has a stake in Nissan, which has a stake in Mitsubishi. However, much friction exists between Renault and Nissan over the firing and legal detention of Carlos Ghosn, who was the CEO of all three firms. Renault had been pushing for a full-blown merger with Nissan, but the Japanese automaker has fiercely resisted that move. With FCA onboard, Nissan’s stake in the new entity will be diluted, which might impact the alliance.

So Much Potential

An FCA-Renault merger brings with it much promise, but also many risks. Although FCA is successful, the previous DaimlerChrysler model was not. The new entity faces challenges, including bringing different cultures together. Further, France and Italy have vested interests in the industry, with France holding a stake in Renault. In any case, it appears the French government favors the merger.

FCA’s strongest brand is Jeep, which it is quickly transforming from a regional player to an international powerhouse. Indeed, the automaker will likely press forward with a plan to build a new manufacturing plant in Detroit to produce the Jeep Wagoneer and Grand Wagoneer, upscale models designed to take on Land Rover (Discovery and Range Rover series). Jeep’s growth is phenomenal and doesn’t appear ready to slow any time soon.

The Ram brand brings big profits to FCA with the large pickup truck adding a half-million sales annually. The new entity may find fresh markets for Ram, including perhaps Russia where Lada rules.

As for the Dodge and Chrysler brands, the survival of these two marques may depend largely on just how far the merged company plans to extend its reach. Both have had a place in the American automotive landscape, with a limited reach beyond. And both have lost several models over the past few years as FCA emphasizes utility vehicles and trucks over cars.

See Also — Fiat Chrysler Automobiles: No Takers

Isuzu, Toyota Part Ways…Sort Of

August 7, 2018 by admin 4 Comments

Do you remember the Toyota-Isuzu partnership? Probably not, as these two Japanese automakers are at polar opposites in their involvement in the U.S. market.

Indeed, Toyota is one of the top brands in the U.S., while Isuzu hasn’t sold a vehicle here since 2009. Certainly, Toyota dominates in several things, including hybrid technology, but it is weak in a few areas, including diesel engineering, which happens to be one of Isuzu’s strengths.

2017 Fiat 124 Spider. Not Isuzu. — This Fiat 124 Spider is the result of an agreement FCA made with Mazda.

Toyota, Isuzu Forge a Partnership

Thus, in 2006, Toyota and Isuzu signed an agreement to utilize each other’s resources in diesel development, a partnership that made sense at the time. For instance, with fuel prices still high and soon to reach higher still, the original agreement allowed both manufacturers to strengthen their diesel involvement. But as the ensuing years have attested, changes in fuel prices, customer tastes and regulatory concerns have changed things considerably. Diesel demand is down and likely to continue to fall.

So, Toyota did this month what makes perfect sense: it officially dissolved the partnership. Further, Toyota will sell its 50 million shares of Isuzu stock, which gave the company a 5.89-percent stake in Isuzu. Moving forward, the two companies will continue to collaborate on projects feasible to both.

In a press release, Toyota cited the automotive industry’s “sweeping, once-in-a-century changes” as the company’s reason for concentrating on other matters. For instance, the two automakers are likely to continue collaborating on other areas where they are strong. For Isuzu, that would be commercial vehicles. And for Toyota, that’s always been passenger vehicles, this automaker’s mainstay.

2016 Toyota Yaris iA — This Scion iA (now Toyota Yaris iA) is the result of a partnership between Toyota and Mazda.

Toyota and Mazda

Toyota has long collaborated or held stakes in junior Japanese manufacturers, including Mazda, Daihatsu and Subaru. In 2015, Mazda and Toyota announced a partnership whereby Mazda later supplied a vehicle to Toyota based on the Mazda 2. Originally sold as the 2016 Scion iA, this model is currently marketed as the Toyota Yaris iA now that the Scion brand has dissolved.

As for Mazda, the automaker is certain to benefit from Toyota hybrid technology, although as of this writing we haven’t seen such a model in the U.S. market. Toyota might also aid Mazda in all things hydrogen, yet another Toyota strength.

Auto Industry Buzzword: Collaboration

Industry collaboration is growing and will likely expand further as automakers deal with two matters that Toyota described as the “sweeping, once-in-a-century changes.” Specifically, these involve vehicle electrification and autonomy.

In June 2018, General Motors and Honda announced the second component of their earlier agreement, which builds on a joint venture to produce hydrogen fuel cell systems as early as 2020. The latest agreement covers electric-vehicle batteries, which is something GM will supply to Honda, according to Bloomberg. By doing so, GM will lower its own costs as both manufacturers ramp production of electric vehicles.

Waymo Google Chrysler Pacifica — Automakers are also collaborating with tech companies, such as FCA with Waymo.

For Honda, the agreement with GM enables the company to forge a partnership as its chief domestic competitors build their own. We already looked at Toyota’s stake in Japanese manufacturers. Nissan, however, has the most aggressive alliance going as the company has a significant stake in Renault and Renault has a significant stake in Nissan. In 2015, Nissan also purchased a controlling interest in Mitsubishi. The three companies currently form an alliance that sells more vehicles worldwide than any manufacturer.

Other areas of collaboration include GM and Ford working on automatic transmissions for the second time this millennium. In the early 2000s, the two manufacturers partnered to develop the six-speed automatic transmissions which were common in Ford and GM vehicles for more than a decade. Later, the two companies developed new nine- and 10-speed automatic transmissions, which are widely used today.

Getting it Done

So, although Toyota and Isuzu have officially ended their partnership, the collaborations will continue. As with many such efforts, the agreement is usually temporary and is sometimes fluid. As long as both parties see a benefit in working together, then these will continue. After all, lowering costs is the dictum of our day. Finally, consumers will benefit too, as those savings are passed on, making new technologies affordable for most.

Photos copyright the respective manufacturer except for the Fiat 124 Spider, which belongs to Auto Trends Magazine.

Key Facts Surrounding the Nissan-Mitsubishi Alliance

May 13, 2016 by admin 3 Comments

Will Nissan help Mitsubishi bring a new face to the US market? Mitsubishi Lancer Final Edition

If you were one of those people concerned that the latest Mitsubishi scandal would do this automaker in, take heart: the company has been saved by a competitor and current collaborator, Nissan Motors.

On Thursday, the two Japanese automakers signed a Basic Agreement forming a strategic alliance between the two companies. To that end, Mitsubishi is issuing new stock shares, enabling Nissan to claim a 34 percent stake in the company. In effect, the move gives Nissan controlling interest in Mitsubishi, allowing the two automakers to cooperate on a new level.

Here are the key facts surrounding the Nissan-Mitsubishi Alliance:

Nothing comes cheap. Following Mitsubishi’s latest scandal (see The Rise and Fall of Mitsubishi), the parent company saw its valuation plunge by US$3 billion. Nissan is paying 237 billion yen or approximately $2.174 billion for a stake in its junior partner.

Other partners are present. Nissan will hold a large stake in Mitsubishi, but three other major stakeholders will also be present: Mitsubishi Heavy Industries, Mitsubishi Corporation and the Bank of Tokyo. Although all three yield much power, they’re expected to cede to Nissan’s wishes once the deal closes by year end. French automaker Renault is also tied in as part of the original alliance forged 17 years ago.

The current collaboration will expand. Greatly. The current Mitsubishi scandal started when Nissan disclosed that its partner fudged on the fuel economy for the tiny “kei” cars supplied to it by Mitsubishi. Later, it turned out that Mitsubishi had lied on all of its fuel economy figures, but not for cars marketed in the US. That’s a good thing too — with the EPA slapping and fining automakers such as Ford and Hyundai for exaggerating their fuel numbers and slamming Volkswagen for its own emissions scandal, it is doubtful Mitsubishi would survive a US-backed hit. Then again, is there another shoe about to drop here in the states?

It goes beyond cars. Building cars and sharing platforms are one thing, but other synergies are present. The automakers will share technologies, purchasing, jointly utilize plants, and collaborate in growth markets. How this relationship unfolds will yet be determined.

Mitsubishi is over as we know it. The alliance between the two manufacturers mean that Mitsubishi is effectively gone as an independent company. That doesn’t mean the Mitsubishi brand will fade away, but it does mean the two companies will cooperate on platform sharing. The cooperation will probably be heavily skewed to Nissan, except for the tiny cars it has bought and rebadged from Mitsubishi for the past five years.

The US market is in doubt. Platform sharing can mean Mitsubishi’s weak US offerings will go through a renewal. By accepting badge-engineered Nissan Versas, Sentras, and Altimas, along with a handful of SUVs, Mitsubishi may soon fill out its entire product line. But is that a good thing? Nissan doesn’t need to compete with itself, especially in the hard-fought, but profitable US market. Mitsubishi’s strength lies elsewhere, especially in emerging markets. Throwing in the towel in the US might be the best course of action to take, allowing Mitsubishi to follow Daihatsu, Isuzu, and Suzuki through the exits.

The Alliance is now the world’s fourth-largest automaker. Cars sold by Nissan, Renault, and Mitsubishi currently account for 9.6 million units annually, putting this group immediately behind the top leaders. Toyota is still on top with 10.1 million units sold in 2015, followed by Volkswagen at 9.9 million and General Motors at 9.8 million. What an amazing turn around from the late 1990s, when Nissan was on life support and Renault jumped in with a rescue plan.

Is Further Consolidation Possible?

With Nissan snapping up Mitsubishi and Toyota completing its acquisition of Daihatsu, the global auto industry is seeing consolidation continue. Fiat Chrysler wants a partner, but there are no takers. Still, if the right alliance is forged, then even FCA may soon find itself in the arms of a new suitor.

See Also —- Isuzu, Toyota Part Ways…Sort Of

About That Chicken Tax on Pickup Trucks

July 2, 2015 by admin 2 Comments

With the “chicken tax” removed, the Volkswagen Amarok could be readied for the US market.

“The power to tax is the power to destroy” — John Marshall

There may be no subject more contentious in the United States than taxation. Every citizen pays taxes and it is nearly impossible to avoid that expenditure.

While there are some taxes that are easy to understand, such as a sales tax on purchases and property taxes on homes, there are other taxes that just don’t seem sensible or are downright maddening.

One such tax that stirs the ire of automotive enthusiasts is the so-called “chicken tax” applied to light-duty pickup trucks. The appellation seems misplaced, but under closer scrutiny the tie-in to the original and retaliatory chicken tax should be understood. We’’ll take a look at this tax and its future, especially as a pair of new trade agreements may finally render the chicken tax null and void.

The Chicken War

In the early 1960s, the United States was battling with Europe’s Common Market regarding the export of US chickens to the continent. In response to US imports that they believed were hurting European farmers, the European Economic Community (EEC) raised tariffs on imported chicken, essentially closing the market to US producers.

After more than a year of diplomatic negotiations, the United States responded by slapping a 25 percent chicken tax on four items of importance to European exporters: brandy, dextrin, potato starch and light trucks. In 1963, the Chicken War began and still rages today, although only light trucks are still taxed. The other three items have since been removed from the tax. Further, the Chicken Tax — now a tax on light trucks — applies to all manufacturers, not just those based in Europe.

Bypassing the Tariff

With the chicken tax in force, foreign automakers found themselves squeezed out of a lucrative market. But not for long. Indeed, manufacturers soon devised ways to bypass the tariff, by looking for loopholes. Those loopholes, when exploited, lowered the tariff to a more reasonable 4 percent.

Japanese manufacturers were at the forefront of driving through the loopholes. They did so by exporting only part of the pickup truck composed of the cab and chassis, leaving off the truck bed or box. When the vehicles arrived in the US, they would then be upfitted with a cargo box and marketed stateside.

The 1970s was the heyday for small pickup trucks, with manufacturers such as Toyota, Nissan, Mitsubishi, Subaru and Mazda participating in the US market. Moreover, the US manufacturers jumped in with their own models as Ford imported the Courier from Mazda and Chevrolet the Luv from Isuzu.

Closing the Loophole

By 1980, legislators closed the cab chassis loophole as both General Motors and Ford readied home-built models such as the Chevrolet S-10 and the Ford Ranger. Despite the tariff, Japanese manufacturers continued to import pickup trucks, but also began building factories in North America to produce them locally.

Subaru found yet another loophole in the law that it exploited throughout the 1980s. Specifically, by placing a pair of rear facing seats in the cab, the company called its Brat pickup truck a passenger vehicle. That loophole was closed as the 1980s came to and end.

Avoiding the Tariff

Although the chicken tax was left in place to protect GM, Ford and Chrysler, the US manufacturers have always looked for ways to circumvent the tariff as well. Certainly, truck brands such as Ford, Chevrolet, GMC and Dodge Ram have benefited from the tariff, but all three manufacturers have looked for ways to burgeon their own fleets with carefully selected models.

In the 2000s, DaimlerChrysler began to import the Dodge Sprinter van (later the Mercedes-Benz Sprinter). Cargo versions of the van were subject to the chicken tax, while passenger versions were not. Thus, partially assembled cargo Sprinters were sent stateside with upfitting completed in South Carolina.

Ford has avoided the chicken tax with its Transit Connect van, built in Turkey. All models are imported as passenger vans, thus avoiding the tax. Once in the US, those models destined as cargo vans are modified accordingly.

Ending the Chicken Tax

A push to end the chicken tax has been going on for decades. Much of that effort has fallen on deaf ears, with no concerted effort to eliminate the tax. Until now.

Two new trade deals are now in place — the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP) — and each one will make the chicken tax history. In essence, the Obama administration (and subsequent administrations) now have the ability to negotiate trade agreements and submit these to Congress without worry that power sucking amendments would be added.

A treaty with Pacific Rim countries will most likely go before Congress this fall, but the European version will take longer. The chicken tax and other tariffs will gradually disappear, but it may take years as they’re gradually rolled back.

Are New Models on the Way?

With the chicken tax removed, might we finally see many of the smaller pickup trucks that the world enjoys stateside? Certainly, manufacturers such as Mitsubishi, Volkswagen, and Mazda have vehicles that might be considered for the US market. However, with pickup truck buyers overwhelmingly interested in pickups with robust towing and off-roading characteristics, the demand may not be as strong as some have hoped.

Then there is also the matter of making such trucks compliant to US crashworthiness and emissions standards. Ford hasn’t built the Ranger stateside in five years and now has a global, unibody version built in Thailand. Ford has not given any indication that it wants to sell a model to complement its full-size F-150, but that could change. Yet, the latest Ranger wouldn’t have the body-on-frame durability of the Chevrolet Colorado, Toyota Tacoma, GMC Canyon or the Nissan Frontier, giving it a distinct disadvantage.

Fabulously Unfrozen: February 2015 US Auto Sales

March 4, 2015 by admin Leave a Comment

The eastern half of the nation has had quite a winter, with record cold, significant snows and paralyzing ice storms extending deep into the south. Despite the difficult conditions, consumers visited US showrooms in strong numbers, helping to propel February 2015 auto sales in a positive direction.

Truck sales paced GM in February.

Neither treacherous winter conditions, nor rising fuel prices kept consumers from US auto dealer showrooms in February. However, earlier rosy sales projections did not pan out quite the way analysts had hoped as manufacturer sales were tempered almost across the board. Notwithstanding the projections, Toyota Motor Sales notched a 13.3 percent increase in the month on the strength of robust light truck and Lexus sales.

The Detroit Three

Meanwhile, the Ford Motor Company posted a 2 percent decline for the month, even as demand for the F-150 pickup truck, the new Transit van and the Ford Mustang remained strong. Sales for its car lines and utilities were spotty, contributing to the brand’s decline. Lincoln sales tumbled by 7.5 percent, nearly erasing January’s gains.

General Motors enjoyed brisk truck sales with deliveries increasing by 36 percent year over year. GM sales rose by 4.2 percent based on strong demand for GMC products and positive action for Chevrolet. Buick and Cadillac, however, experienced losses with the latter falling by 12.6 percent for the month.

It is now 59 consecutive months whereby Fiat Chrysler (FCA) has been experiencing year-over-year sales gains. February’s rise narrowed to 6 percent with the Jeep brand up by 21 percent and the Chrysler brand up by 13 percent. The Ram brand climbed by 12 percent, but both the Fiat and Dodge brands saw sales pull back.

“In spite of snow and bitter cold that slowed auto sales in many regions of the country, FCA US still turned in a 6 percent sales increase and extended our year-over-year sales streak to 59-consecutive months,” said Reid Bigland, Head of U.S. Sales. “Even with tougher year-over-year sales comparisons in 2015, our vehicle lineup continues to produce record sales results.”

Lexus NX

The all-new NX continues to gain in acceptance with buyers.

The Japan Top Three

Toyota Motor Sales enjoyed a double-digit increase as Camry, Corolla and RAV4 continued to pace the Toyota brand. Scion sub-brand sales, however fell by 14.7 percent as total Toyota brand sales increased by 7.9 percent for the month. The Lexus marque enjoyed robust demand for its RX crossover, GS sedan and for its all-new compact NX crossover model.

American Honda said that its sales rose by 5 percent in February on the strength of a 4.1 percent increase for the Honda brand and a 12.5 percent increase for the Acura emblem. Strong demand for the subcompact Fit, the usual strong interest in the compact CR-V crossover and robust truck sales paced the Honda brand. Acura benefited from a strong interest in its RDX and MDX utility vehicles.

The Nissan Group reported a 2.7 percent sales expansion for February on the strength of hearty interest in its Infiniti marque. Indeed, Infiniti car sales were especially vigorous, rising by 25.1 percent, including a 77.2 percent increase for the Q40. Nissan brand sales rose by 1.1 percent, due largely to a 24.4 percent increase in Nissan Sentra sales for the month.

Hyundai and Kia Report

Hyundai Motor America has had its share of struggles lately, trailing the gains enjoyed by the market leaders and losing market share. However, last month the Korean automaker had its best month ever etas sales rose by 7 percent. The Sonata sedan, Santa Fe crossover and Genesis luxury sedan were key contributors for the month.

“Even the treacherous weather across the country couldn’t keep shoppers away from dealerships in February,” said Bob Pradzinski, vice president, national sales for Hyundai. “With consumer spending and confidence continuing to grow at the fastest pace in years, customers bought Hyundais in record numbers, giving us the best February in our history.”

Kia reported sales of 44,030 units last month, up 6.8 percent over last Feb. The Kia Optima (midsize sedan), Soul (utility vehicle) and Sorento (crossover) continue to pace the market. Sales for its Sedona minivan gained fivefold for the month.

Hyundai Genesis

Sales for the Hyundai Genesis sedan rose sharply in February.

Volkswagen and Subaru Report

Volkswagen brand sales fell for the month, continuing a trend that has dogged this German manufacturer for the past few years. Feb. sales fell by nearly 5.2 percent. However, the subcompact Golf line continues to show much promise as sales surged by 141 percent for the month. The new Golf R was a big contributor as well as the Golf EV.

Subaru continued with its stampede, enjoying brisk sales on 41,358 vehicles sold or up 18.5 percent. All models except the BRZ saw an increase for the month. The Legacy midsize sedan realized an increase of 68 percent for the month and Outback sales were up by nearly 30 percent.

The Luxury Market Remains Strong

Continued strong interest in the luxury brands helped fuel sales for Audi, BMW, Mercedes-Benz and Porsche. Audi sales rose for the 50th consecutive month, increasing by 5.3 percent based largely on sales of its new A3 sedan. The BMW marque’s sales rose by 14.5 percent as interest in its X5 crossover and 2 and 4 Series lines propelled sales. Mercedes-Benz reported its best Feb. ever as sales rose by 4.5 percent. Potent interest in its CLA- and C-Class models helped Mercedes. Porsche sales edged lower by 0.9 percent for the month.

Elsewhere, Mazda sales rose by 5.4 percent, Volvo sales increased by 0.5 percent, and Jaguar Land Rover sales increased by 13.8 percent. Mitsubishi sales rose by 26 percent for the highest gain by any manufacturer for the month.

Mazda sales February 2015

Mazda sales kept pace with the market in February 2015.

February 2015 Sales: Up 5.3 Percent

To sum up, US sales roses by 5.3 percent in a month beset by bad weather. Motor Intelligence (Autodata Corp.) reported 1,257,619 models sold; year-to-date sales are up 9.2 percent.

2014 US Auto Sales Magnify Industry’s Strength

January 5, 2015 by admin 1 Comment

2014

Sales rise by 5.9 percent and top 16.5 million units.

Merely five years ago, the US auto industry recorded one of its worst years in a generation. GM and Chrysler went bankrupt and restructured, and other automakers had to cope with sales that plummeted by 10 to 30 percent or more over the previous year. A “cash for clunkers” program provided some boost, but sales would only begin to revive the following year.

Five years later the US auto industry is back and with its sales that are now at pre-recession levels. In fact, sales rose by 5.9 percent on 16,522,000 units. In 2013, manufacturers sold 15,600,199 new vehicles.

Once again, the Ford F-150 is the best-selling pickup truck and model in America, while the Toyota Camry is the chart-topping car model for the 13th consecutive year. GM, Ford and Toyota continue to pace the industry with Chrysler, Nissan, Subaru and yes, Mitsubishi, all showing robust growth. Undoubtably, the market paradigm has shifted and industry analysts are waxing rhapsodic.

The Top Three Adversaries

General Motors continues to lead in the US. GMC and Buick brought in the largest percentage gains for GM, with Chevrolet sales finishing up by 3.8 percent. Cadillac transactions fell by 6.1 percent in a segment that continues to enjoy double-digit increases. New models and market discipline will most likely help GM’s luxury brand preserve profits and actualize increased sales for 2015. GM finished up by 4.8 percent for the year.

Ford sales slipped by 0.5 percent for the year as the automaker retooled assorted plants to prepare for its most momentous new model of the millennium: the 2015 F-150 pickup truck. To be sure, Ford has effectively sacrificed sales and market share to safeguard quality and positioning with its top-selling model, delivering the first trucks as the calendar year came to an end.

“Fusion and Escape posted record years, and our newest products – including Mustang and Transit and Lincolns – are attracting strong customer demand,” said John Felice, Ford vice president, U.S. Marketing, Sales and Service. “Demand for the all-new F-150 also is very high, and it now is the fastest-turning vehicle in Ford showrooms, averaging just five days on dealer lots in December.”

Perpetually conservative Toyota is now showing signs of risk-taking, fashioning new models that are pushing the styling envelope. Later in the year, the world’s largest automotive manufacturer unloosed an aggressive mid product cycle refresh of its Camry sedan, matching the verve of its chief competitors. Consequently, Toyota Motor Corporation sales climbed by 3 percent for the year, narrowing the divide between it and the No. 2 Ford Motor Company.

Fiat Chrysler in the Limelight

Two brands drove Fiat Chrysler (FCA) sales all year: Jeep and Ram. The pair not only delivered dependable double-digit gains month over month, but have helped FCA securely maintain FCA’s lock on the No. 4 spot in US sales. Nevertheless, FCA is overexposed on the truck and utility vehicle front and must continue to find ways to comply with increasingly rigid CAFE standards. FCA sales rose by more than 16 percent in 2014. Through December, the company has registered 57 consecutive months of month-over-month sales gains.

The Honda brand sold 1,373,029 new vehicles in 2014, an all-time sales record. With Acura included, American Honda recorded 1,540,872 units sold. A strong Dec. for both the Honda and Acura brands enabled this automaker to finish up 1 percent for the year.

“Despite the price of gasoline dropping well below $3 a gallon in many markets, Honda’s strong, balanced lineup of cars and trucks helped us achieve record sales in 2014,” said Jeff Conrad, Honda division senior vice president and general manager. “The great news is that we will build on this momentum with some great new products coming in 2015.”

As 2014 came to a close, Nissan once again found itself trailing Honda for fifth place in the US. Even so, the Nissan brand recorded a strong Dec. and finished up by 12.2 percent for the year. Infiniti also finished up for the year at 0.8 percent, while total company sales outpaced the industry, rising by 11.1 percent for the year.

Subaru Vigor and Mitsubishi Tenacity

Two of the smaller Japanese manufacturers, Subaru and Mitsubishi easily eclipsed the market and gained market share in 2014.

For instance, Subaru sold more than 500,000 models for the first time, continuing its meteoritic ascendancy. By the same token, Mitsubishi laid to rest (for now) rumors that it would exit the US market.

Subaru sales rose by 21 percent on the strength of demand for its Forester and Outback models, while Mitsubishi sales surged by 24.8 percent, largely due to demand for its subcompact Mirage and Outlander Sport utility vehicle models.

“December marked the tenth consecutive month of year-over-year sales increases and helped us close out the year with an increase of nearly 25% over the previous year,” said Don Swearingen, Executive Vice President MMNA. “Our core models lead the way with Outlander Sport having its best-ever sales year since its introduction, Mirage selling well beyond expectations and Outlander coming in strong up over 6% for the year.”

Mercedes-Benz, BMW and Audi Compete

The three German luxury automakers have been enjoying strong sales and 2014 was no exception for Audi, BMW and Mercedes-Benz. Audi reported sales topping 182,000 units, representing an increase of 15.2 percent over 2013. Its best-selling model is its Q5 crossover. Three car lines — A4, A6 and A3 were also significant contributors. Notably, Audi now has 48 consecutive months of month-over-month sales gains under its belt.

BMW Group sales — BMW and Mini brands — topped 395,000 units for the year. BMW sold 30,000 more vehicles than it did last year, finishing up by 9.8 percent, while Mini sales declined by 15.2 percent for 2014.

Mercedes-Benz reported sales volume of 330,391, up 5.7 percent for the year. The Mercedes brand reported 312,534 units sold to 25,745 for Sprinter. Smart sales came in at 10,453 units. Pacing Mercedes were its C-Class, E-Class and M-Class lines.

BMW finished as the luxury brand leader again in 2014 on 339,738 vehicles sold. The second and third place was held by Mercedes-Benz and Lexus (311,389) respectively.

Hyundai, Kia and Volkswagen Report

It has been touch and go for Hyundai all year, but the Korean manufacturer managed to sell 725,718 units for the year or just under 5,000 more vehicles than it did last year. Two crossover models, the Santa Fe and Tucson, provided the momentum for Hyundai to push ahead.

“We ended the year on a high note,” said Bob Pradzinski, vice president of national sales. “And it was evident that the CUV segment was red hot with our exceptional sales for the year for both Santa Fe and Tucson.”

Kia may be the second name in the Hyundai Kia Automotive Group, but it continues to enjoy vigorous sales. Indeed, for 2014 Kia sales rose by 8.4 percent, based largely on renewed interest in its Soul and Sport utility vehicles. December sales surged by nearly 36 percent with most models seeing increases.

Volkswagen sales finished down by 10 percent for the year, but a late surge in sales over the final months reduced those losses. Nonetheless, the Volkswagen brand continues to lose market share, selling just 366,970 new vehicles in 2014. Golf sales were the only model to see improvement for the year.

In Other Sales News

Mazda sales topped 300,000 units sold, providing this company with its best year since 1994. Sales rose by 7.7 percent in 2014 on strong demand for the Mazda 2, Mazda 6 and CX-5 crossover.

Jaguar Land Rover sales finished up 0.4 percent for the year, thanks in large part to a strong Dec. for the Jaguar brand. However, for the year Jaguar finished down by 7 percent, while Land Rover was up by 2.9 percent.

Tesla Motors hit a plateau in 2014, but has new models coming that should help this electric vehicle automaker enjoy more robust growth going forward. For the year, Tesla sold 18,750 units, down 3.1 percent over 2013.

Porsche sales rose by 11.1 percent to 47,007 units. Ferrari and Maserati also reported year over year increases.

Looking Ahead

With another banner year behind it, manufacturers know that keeping the sales momentum up will take much work. Most analysts have expected a more modest boost for 2015, with sales expected to come in just shy of 17 million vehicles by year-end. That would make for a rare six-year streak of year-over-year sales increases.

Sales data supplied by the car manufacturers and Motor Intelligence.

Are you looking for a new car? Check out our car reviews section for more information. We reviewed 60 new vehicles during the 2014 calendar year, offering comprehensive information about each model driven.

MITSUBISHI

Go to Specifications: Mirage | Outlander Sport | Eclipse Cross | Outlander

Renault-Nissan-Mitsubishi Alliance

2020 Mitsubishi Product Line

2020 Mitsubishi Mirage Specifications

2020 Mitsubishi Outlander Sport Specifications

2020 Mitsubishi Eclipse Cross Specifications

2020 Mitsubishi Outlander Specifications

General Motors Company

Volkswagen Group

Fiat Chrysler Automobiles

Toyota Motor Corporation

BMW AG

Renault-Nissan-Mitsubishi Alliance

Ford Motor Company

Daimler AG

Hyundai and Kia

Cooperation and Collaboration

Marchionne, the Capital Junkie

FCA and Renault Brands

So Much Potential

Toyota, Isuzu Forge a Partnership

Toyota and Mazda

Auto Industry Buzzword: Collaboration

Getting it Done

Is Further Consolidation Possible?

The Chicken War

Bypassing the Tariff

Closing the Loophole

Avoiding the Tariff

Ending the Chicken Tax

Are New Models on the Way?

The Detroit Three

The Japan Top Three

Hyundai and Kia Report

Volkswagen and Subaru Report

The Luxury Market Remains Strong

February 2015 Sales: Up 5.3 Percent

The Top Three Adversaries

Fiat Chrysler in the Limelight

Subaru Vigor and Mitsubishi Tenacity

Mercedes-Benz, BMW and Audi Compete

Hyundai, Kia and Volkswagen Report

In Other Sales News

Looking Ahead

GM, Ford and Chrysler

Toyota, Honda and Nissan

Subaru, Hyundai and Kia

Volkswagen and the Rest

November 2014 Auto Sales