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Mitsubishi Motors Europe

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Mitsubishi Motors Europe B.V.
Company typeSubsidiary
Founded2002; 22 years ago (2002)
HeadquartersBorn (Sittard-Geleen), Netherlands
Key people
Frank Krol (President, CEO)
Revenue€4,418 million (2006)
€280 million (2006)
ParentMitsubishi Motors
Websitemitsubishi-motors-europe.com

Mitsubishi Motors Europe (MME) is the European headquarters and sales, distribution subsidiary of the Japanese automotive manufacturer Mitsubishi Motors. Their headquarters and distribution center are located in Born in the Netherlands.

History

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In 1991, Mitsubishi built the NedCar plant in the Netherlands as a joint venture with Volvo and the Dutch government. Mitsubishi bought out its partners in 2001 and became the sole owner of the plant.[1] Mitsubishi entered a joint agreement with the European car manufacturer Renault in 1999.[2] From 1999 onwards, Mitsubishi subcontracted production to Pininfarina in Turin, Italy with at least 35,000 units being produced annually.[3][4] In 2010, a legal dispute between Mitsubishi and Pininfarina was settled. The International Chamber of Commerce deciding that Mitsubishi had overestimated the demand for the Mitsubishi Colt CZC and caused Pininfarina to lose money as a result of over production.[5]

The European design studio Mitsubishi Design Europe (MDE) and the research and development center Mitsubishi R&D Europe (MRDE) are based at Trebur in Germany.[6] Mitsubishi Motors Motor Sports (MMSP), responsible for the company representation in the Dakar Rally, is based in Pont-de-Vaux, France.[7]

Historically, MME was responsible for sales within Russia.[8] However, economic development in Russia during the 1990s and early 2000s drove annual sales from less than 50 in 1991 to 57,200 in 2006.[9] At the time it represented the company's biggest market in Europe, and MME began treating Russia as a separate market.[10] In addition, MME was greatly successful in the Ukrainian market, being the top selling brand for four consecutive years to 2007.[8] At the time, the company oversaw 2,500 dealers in 36 countries.[11]

MME's sales in Europe reached a peak of 340,000 vehicles between 2007 and 2008. However, sales began to decline afterwards, reaching 218,000 between 2011 and 2012. MME sold the Nedcar plant, which was no longer profitable, to VDL Groep for a token price of €1 in 2012, on the condition that none of the workers at the plant lose their jobs.[1]

Nissan purchased a 34% stake in Mitsubishi in 2016, and formed the Renault–Nissan–Mitsubishi Alliance.[12] The buyout occurred after the diesel emissions scandal revealed that Mitsubishi had been falsifying its fuel economy data.[13] The scandal caused shares in the company to fall almost immediately.[14] As part of MME's plan to increase sales in Europe, the company announced that it would increase spending on research and development in areas like electric vehicles.[12]

In 2020, Mitsubishi announced that it was exiting the European market, after failing to generate a profit in the region. As part of this decision, the company would not market any new models of vehicle in Europe, and would focus on selling off existing models.[15]

In 2021, it was announced that MME would return to the European market, although it would cease car sales in the United Kingdom by the end of that year.[16] This decision came after reaching an agreement with Renault-Nissan, through which Renault would manufacture Mitsubishi cars in France.[17][18] The company also resumed the production and sales of the Mitsubishi Colt, after not marketing the car in Europe for ten years.[19]

The company's sales in the European market continued to decline in 2022.[20] Due to logistical difficulties and supply chain issues caused by the 2022 Russian invasion of Ukraine, Mitsubishi ceased the production of vehicles at its plant in Kaluga in 2022.[21]

Production and sales figures

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Year Production Sales
1995 19,100 n/a
1996 44,401 n/a
1997 82,255 n/a
1998 91,884 n/a
1999 113,331 n/a
2000 78,542 258,256
2001 79,261 212,983
2002 86,900 202,993
2003 75,276 213,567
2004 103,101 241,758
2005 68,551 267,220
2006 80,315 282,333*
2007 68,434 340,490*
2012 n/a 218,000

*Figures include Russia, although this market is no longer under MME jurisdiction.

(Sources: Fact & Figures 2000, Fact & Figures 2005, Fact & Figures 2008, Mitsubishi Motors website)

References

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  1. ^ a b "Mitsubishi Motors to sell NedCar plant for 1 euro to VDL". Reuters. 2012-07-11. Retrieved 2022-08-27.
  2. ^ Halvorson, Bengt (2017-10-19). "More Rehab Than Recovery: Mitsubishi Has a Plan to Reverse Its Long Decline". Car and Driver. Retrieved 2022-08-27.
  3. ^ "Mitsubishi Motors links up with Italian firm". The Japan Times. 1997-01-28. Retrieved 2022-08-30.
  4. ^ Journal, Brandon MitchenerStaff Reporter of The Wall Street (1997-01-29). "Mitsubishi, Pininfarina Form Italy Venture". Wall Street Journal. ISSN 0099-9660. Retrieved 2022-08-30.
  5. ^ "Mitsubishi told to compensate Pininfarina over production dispute". Automotive News Europe. 2010-08-06. Retrieved 2022-08-30.
  6. ^ "Mitsubishi's new design chief must work his magic fast". Autoweek. 2004-08-10. Retrieved 2022-08-30.
  7. ^ "Mitsubishi announces Dakar vehicles". au.motorsport.com. Retrieved 2022-08-30.
  8. ^ a b "FY2007 Financial results", MME website
  9. ^ "Russian plant for Mitsubishi seems likely; Japanese carmaker considers local production to meet booming demand", James B. Treece, Automotive News Europe, October 2006
  10. ^ "MMC designates Russia 'stand-alone' business region"[permanent dead link], Just Auto, April 27, 2007
  11. ^ Facts & Figures, MME website
  12. ^ a b Halvorson, Bengt (2017-10-19). "More Rehab Than Recovery: Mitsubishi Has a Plan to Reverse Its Long Decline". Car and Driver. Retrieved 2022-08-27.
  13. ^ "Mitsubishi leaves, with a legacy of broken electric dreams behind it". The Irish Times. Retrieved 2022-08-27.
  14. ^ Soble, Jonathan (2016-04-20). "Mitsubishi Admits Cheating on Fuel-Economy Tests". The New York Times. ISSN 0362-4331. Retrieved 2022-08-27.
  15. ^ "Mitsubishi will no longer bring new models to Europe". electrive.com. 2020-07-28. Retrieved 2022-08-27.
  16. ^ "Confirmed: Mitsubishi Motors to end UK car sales this autumn but remain in Europe". Driving.co.uk from The Sunday Times. 2021-03-11. Retrieved 2022-08-27.
  17. ^ "Mitsubishi back in Europe with new Renault deal". Auto Express. Retrieved 2022-08-27.
  18. ^ "Mitsubishi Motors set to reverse move to withdraw from Europe". Financial Times. 2021-02-23. Retrieved 2022-08-27.
  19. ^ "Mitsubishi Motors to revive Colt in Europe after 10-year hiatus". Nikkei Asia. Retrieved 2022-08-27.
  20. ^ "Mitsubishi bounces back to profitability". Automotive News Europe. 2022-05-11. Retrieved 2022-08-27.
  21. ^ "Mitsubishi halts production at Russian plant it co-runs with Stellantis". Automotive News Europe. 2022-04-08. Retrieved 2022-08-27.
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