Mitsubishi Motors Australia
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| Mitsubishi Motors Australia Ltd | |
|---|---|
 |
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| Type | Subsidiary |
| Founded | October 1, 1980 |
| Headquarters | Tonsley Park, South Australia |
| Key people | Robert McEniry (President & CEO) |
| Industry | Import, distribution, and marketing |
| Products | Mitsubishi vehicles |
| Parent | Mitsubishi Motors (100%) |
| Website | Mitsubishi-Motors.com.au |
Mitsubishi Motors Australia Ltd. (MMAL) is a fully owned subsidiary of Mitsubishi Motors Corporation (MMC) of Japan. Its Australian administrative headquarters are located at Tonsley Park (Clovelly Park, South Australia), with branch offices in Brisbane, Sydney, Melbourne and Perth. These headquarters in Tonsley Park were also the site of its vehicle manufacturing facility prior to March 2008, when lack of sales of the large Mitsubishi 380 model prompted the plant closure. Mitsubishi first began manufacturing in 1980, taking over from Chrysler Australia, which produced the compact Sigma. Mitsubishi badge engineered the Sigma, branding under its own "Mitsubishi" identity. Ironically, the Sigma was a Mitsubishi design in the first place, re-badged for the sake of Chrysler. The Sigma departed in 1985, replaced by the Magna, which received two successors during the 1990s under the same nameplate. MMAL operates spare parts facilities in Adelaide and Sydney.
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[edit] History of the marque
[edit] Chrysler takeover
MMAL's Tonsley Park plant was opened in 1964 as the Australian manufacturing plant for Chrysler Australia, with Chrysler's previous manufacturing plant being relocated from Keswick, an inner-Adelaide suburb. In 1968, Chrysler opened an engine manufacturing plant south of Adelaide at Lonsdale, to provide engines for the popular Valiant and Valliant Charger lines that were being assembled at Tonsley Park.
During the 1970s, Chrysler began working closely with MMC after they acquired a 15 percent interest in MMC in 1971, with the result that Chrysler Australia begin building Mitsubishi-designed Chrysler-branded vehicles such as the Chrysler Valiant (1972–1977 Mitsubishi Galant) and the Chrysler Sigma (1977–1985 Mitsubishi Galant). The Tonsley Park plant was sold to MMC and a new subsidiary, Mitsubishi Motors Australia, was formed to run the plant after Chrysler pulled out of Australian manufacturing in 1980. Production of the popular Sigma and Colt range of vehicles continued under the Mitsubishi name until the late 1980s, when production was switched exclusively to the Magna.
[edit] Magna and sales pinnacle
The Magna, like its forebear, the Sigma was based on the Galant. This time, input from MMAL resulted in a wider car than the donor model a station wagon joined the line in 1987. Several model refreshes during the 1990s kept the Magna, which had expanded to include the luxury and Verada updated. However, by the early 2000s, it was clear that the Magna/Verada line, now in its third iteration had aged considerably. A facelift to the Magna/Verada line in 2003 failed to lift sales.[1] Approval for construction of a new vehicle was gained from MMC and funding was provided to re-engineer the Tonsley Park plant with the result that a new vehicle, the Mitsubishi 380, which was delivered to the market in late 2005.
[edit] Challenges
MMC's financial and legal issues have weighed hard on MMAL, with public perception of the viability of MMAL reaching an all time low in 2004. Company research conducted in mid-2004 revealed that 84 percent of Australians (roughly four out of every five) believed that Mitsubishi would cease production in Australia.[2] The withdrawal of DaimlerChrysler from its involvement with MMC in 2004, along with the resultant MMC revitalisation plan that called for the closure of the Lonsdale engine plant, did not help the public's perception of MMAL as a viable company. MMAL ended 2004 with a stockpile of approximately 4,000 unsold Magnas and Verada.[3] To reinstate consumer confidence in the brand, and to clear the model backlog, a series of television commercials began airing in December 2004.[2] Centralised around Mitsubishi Australia’s then CEO Tom Phillips, the advertisements promoted the introduction of an industry-first five-year/130,000 kilometre warranty. Mitsubishi reworked a slogan from former Chrysler chairman Lee Iacocca, concluding their commercials with the tagline, "if you can find a better-built, better-backed car anywhere, then buy it".[4] The campaign successfully boosted sales and allowed the backlog to be cleared, although only helped MMAL for the short term.
The Mitsubishi 380, the successor vehicle to the Magna, raised hopes at MMAL that the vehicle will be successful, buoyed partly by the sales success that the Magna experienced when it was launched as a new line in 1985 and partly by the fact that the Australian automobile market is one of the few developed markets in the world currently experiencing growth. However, it has sold poorly since its introduction, which necessitated the lowering of production volume to as little as 50 cars per day and further reductions in the workforce. Sales of MMC vehicles began to show improvement in Asian and European markets as new vehicles were introduced during 2006. These were introduction into the Australian market, subsequently boosting MMAL's Australian sales into the segments that these vehicles occupied. This did not help Australian manufacturing, with the large 380 model still experiencing low sales.
On February 5, 2008, it was announced Mitsubishi would cease production of the 380 at the Tonsley Park plant effective at the end of March 2008. The two-page statement released by MMAL announced Mitsubishi would pursue a "full import strategy" for the Australian market due to unviable 380 sales.[5] The last Mitsubishi 380 sedan left the production line on Thursday the March 27, 2008. Coinciding with the last vehicles to leave the line was the redundancy of about 500 workers, with another 430 staying for up to 12 months. These remaining employes will decommission the plant and produce a stockpile of spare parts destined to last ten years.[6] While manufacturing operations ceased on that date, the Tonsley Park site remained the headquarters for MMAL's Australian import, distribution and retail business.
[edit] Vehicle lineup
Since the end of local 380 production, the entire vehicle range that MMAL sells into the Australian market is imported from Japan (Colt, Express, Grandis, Lancer, Outlander, Pajero) and Thailand (Triton).
[edit] Production and sales, 1991–2007
| Year | Production | Sales |
|---|---|---|
| 1991 | 29,074 | n/a |
| 1992 | 36,714 | n/a |
| 1993 | 52,521 | n/a |
| 1994 | 47,859 | n/a |
| 1995 | 39,728 | n/a |
| 1996 | 43,235 | n/a |
| 1997 | 58,290 | n/a |
| 1998 | 47,296 | n/a |
| 1999 | 34,883 | n/a |
| 2000 | 38,566 | 70,599 |
| 2001 | 43,801 | 65,512 |
| 2002 | 46,191 | 65,054 |
| 2003 | 31,470 | 66,979 |
| 2004 | 17,245 | 56,260 |
| 2005 | 18,657 | 55,307 |
| 2006 | 10,560 | 57,288 |
| 2007 | 10,942 | 65,397 |
(Sources: Fact & Figures 2000, Fact & Figures 2005, Fact & Figures 2007, Mitsubishi Motors website)
[edit] Notes
- ^ McDonald, Neil (2004-03-03). Magna's looks put dent in sales. The Australian. Fairfax Media. Retrieved on 2007-08-04.
- ^ a b Carey, McCarthy (2005), p. 10
- ^ Mitsubishi to reduce working week. The Age. Fairfax Media (2004-11-10). Retrieved on 2008-04-28.
- ^ Rise of the Mitsubishi man, Asia Africa Intelligence Wire, 2004-12-19
- ^ Davis, Mark; Dowling, Josh; Norrie, Justin (2008-02-05). Mitsubishi plant to close in March. The Sydney Morning Herald. Fairfax Media. Retrieved on 2008-02-05.
- ^ Mitsubishi shuts its doors in Adelaide. The Sydney Morning Herald. Fairfax Media (2008-03-28). Retrieved on 2008-04-24.
[edit] References
- Carey, John; McCarthy, Mike (2005). "Wheels magazine: Special Edition". Wheels magazine: 50. ACP Magazines.
[edit] External links
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