Mitsubishi Galant Likely To Be Retired At Life Cycle’s End
The midsize car market is a brutal segment in the automotive industry, one that is dominated by the Toyota Camry and Honda Accord with both the Chevrolet Malibu and Ford Fusion also making a strong showing. Virtually every automaker is represented in this segment, consisting of over twenty different models for consumers to choose from.
With such a crowded field, some models are getting squeezed more than others, putting pressure on automakers to pour money into updating one or more entries, and taking resources away from other products.
Mitsubishi, who has long fielded a midsize model of its own, the Galant, will likely depart this segment when the ninth (and current) generation Galant ages out in four years. Built at the company’s sole U.S. Plant in Normal, Illinois, the Galant along with the Endeavor and Eclipse contributed only 80,000 sales for Mitsubishi for the most recent model year just ended. The plant’s capacity is 240,000 vehicles but only needs to produce 100,000 units annually in order to turn a profit.
Falling short by 20,000 units, Mitsubishi is looking to replace the Galant with a better selling model, perhaps its compact Lancer or its small Outlander SUV, maybe both. Both vehicles could be built in the US with excess capacity shipped overseas.
Mitsubishi recently completed an agreement with the United Auto Workers to keep the plant open for at least four more years in exchange for employee concessions. A move to smaller, more desirable vehicles could ensure that the plant’s life is extended well beyond that time frame.
To help maintain product build, Mitsubishi has begun to export the Galant and Endeavor, but isn’t seeing that much success. Like so many other automakers stuck with excess capacity, shipping products abroad is being a much more competitive undertaking, one that is falling far short of expectations.
For consumers, finding a great deal on most any midsize car is easy to do thanks to heated competition. The Hyundai Sonata, Pontiac G6, Chrysler Sebring, and Buick LaCrosse have all been heavily discounted this year, making the midsize market a car buying extravaganza for savvy shoppers.
(Source: Motor Trends)
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