Mitsubishi Cuts US Production Due To Soft Sales

Mitsubishi Galant

The American motoring public has some misperctions about the Japanese automotive industry. Certainly, Toyota, Honda, and Nissan are the leaders of the pack, companies worth emulating whether you are GM, BMW, or Hyundai. On the other hand, several smaller automakers are flying (or driving) below the radar including Suzuki, Daihatsu, and Mitsubishi.

Mitsubishi got its toehold in the US marketplace thanks to its early relationship with Chrysler. Back during the 1970s and 1980s when Chrysler was building almost nothing but big cars, Mitsubishi models were sandwiched into the company’s line up as Plymouth Sapporo or Dodge Colt. Later, when Mitsubishi announced that they wanted to market cars in the US under their own name, a bunch of new models started to appear including the Galant, Cordia, and the Eclipse.

Eventually, Mitsubishi opened its own factory in the US and began to churn out vehicles, most recently the Galant sedan and the Endeavor SUV. Though the Normal, IL plant has the capacity to produce 110,000 vehicles annually, most recent annual production has been set at 75,500 units.  Last week, Mitsubishi announced that the automaker was cutting capacity to 69,000 units, reflecting decreased demand for its vehicles. The company has announced that 105 wokers would be let go through early retirement.

Cutting back production on the Endeavor makes sense, given that the entire SUV market has been hammered lately. The Galant sedan has withered in the face of stiff competition, most notably from the Toyota Camry, Honda Accord, Ford Fusion, and Chevrolet Malibu.  The current generation Galant debuted in the Fall of 2003 and is, therefore, approaching the end of its lifecycle. The featured photo is of the 2009 model which has received a facelift, but it still represents the latest generation Galant.

Mitsubishi may go the way of Isuzu who is exiting the US marketplace. Like Isuzu, Mitsubishi’s US sales are a shadow of their former self, putting the company’s long term viability stateside into question.

Dodge Ram Claims Mileage Edge

Dodge Ram Quad

Makers of full-sized pick up trucks have been taking it on the chin for many months now. Gas priced at $3 per gallon wasn’t so bad, but when it topped $4 recently, sales were already tanking.

Ford has responded with big discounts, cut rate financing, and a two month delay of its next generation F-150. GM is slashing prices and promises to delay the next generation Sierra and Silverado by a year or two. Nissan will build the next generation of its Titan truck on a Dodge Ram chassis, while Toyota has slashed production of its all-new Tundra.

Like Ford, Dodge is bringing out an all-new model for 2009, but unlike Ford they aren’t pushing back the release date.

Dodge may have an edge over the new F-150 as it will offer a V6 engine, while Ford does away with its I6, relying exclusively on V8 power. This move is curious in light of cheaper gasoline, but ludicrous with gas topping $4 per gallon. Moreover, Dodge will have the edge when its I6 turbo diesel comes out for the 2010 model year, a Cummins engine which will be 50 state legal.

Dodge Ram Engine Line Up

For 2009, the following engines will power the Dodge Ram:

5.7L V8 HEMI — the biggest and thirstiest of Dodge’s engines will see a boost in fuel economy of 4%, horsepower jump by 13%, and a 8% boost in torque. Dodge will employ technology to shut down half of the cylinders when not needed, hence the gain.

4.7L V8 — generating 310 horses and 330 lbs.-sq ft of torque, the 4.7L will carry a flex fuel designation allowing motorists to fill up with either gas or ethanol.

3.7L V6 — this engine will give the Dodge Ram an edge over the Ford F-150 which no longer offers a six-cylinder powerplant, at least for 2009. The truck produces a horsepower and torque rating of 215 and 235 respectively.

6.7L Turbo Diesel V8 — Until the smaller, V6 diesel arrives the following model year, the big diesel will have to do. No power numbers have been offered by Chrysler LLC yet for this truck.

In 2010 a hybrid Dodge Ram will be added to the line up, completing Dodge’s offerings. We don’t know what the exact EPA fuel numbers of any 2009 Dodge Ram model will be, so we’ll reserve comment for now.

(Source: Chrysler LLC)