Mitsu Publicly Firm on Staying in US, Privately Very Worried

Fokoku Capital Management, an influential Japanese business firm, caused quite a bit of buzz yesterday when an analyst recommended Mitsubishi Motors and Suzuki Automotive withdrawal from the US market.  Both independent car companies publicly reaffirmed their dedication to staying inside the United States, but now word is coming in that serious discussion is being made over their declining status in the American market.

Suzuki will hold off on a decision until the Kizashi, an elegantly sculpted sedan, lands on US shores.  It’s a different matter with Mitsubishi.  Like most carmakers here, Mitsubishi has seen its sales dive with the recession.  It attempted a turnaround with a refreshed Outlander sport-ute for 2006, followed by a greatly improved Lancer compact sedan for ’08.  But Mitsubishi’s limited developmental resources and distribution network have constrained its ability to quickly expand an improved product line.  A dent in revenue and shrinking market share are dividing company management on the matter of keeping an American presence.

Those resisting a pullout are hoping to see the Lancer Sportback, and a refreshed Galant further down the road, provide an uptick in sales and a boost in its Western image.  We’ll have more on this topic later in the coming week.