mmarshall

http://www.mitsubishicars.com/dealers

It's no secret that Mitsubishi is not doing well in the U.S. There are, of course, a number of reasons for that (some of which we have already discussed in CAR CHAT) and there probably isn't any one easy solution for it. But, especially in the last several years, as I've watched the number of Mitsubishi dealerships in the U.S. dwindle more and more (just like with Suzuki before they packed up end left), I've become absolutely convinced that the lack of dealerships is becoming a major reason. Even though more and more people buy cars on-line today without a previous inspection or test-drive, the traditional dealership/franchise, for several reasons, is still the method that most people use. And why not? At least, there, you can see and test-drive a vehicle, and see how well it suits you before you actually decide to buy or lease it.

Here's an example of why, unless you sell directly from factory to customer like Tesla does, you have to have at least a reasonable number of dealerships. A long-standing friend of mine (also a minister) called me last night from Carson City, NV, where he and his wife now live, and asked me for car-buying advice. His old Jetta is becoming a money pit (typical of many aging VWs ), and it's time to replace it. After stating his present needs (winter capability, AWD, some mountain passes, decent reliability/economy, outward visibility, space efficiency inside for carrying things), I suggested a number of Subarus and relatively small crossover CUVs and discussed the plusses and minuses of each one with him (Forester/Outback, CR-V, RAV-4, Escape, Sportage, Tuscon, Rogue/Rogue Select, Outlander, etc). He had already sampled the Mazda CX-5 and didn't like it. He seemed especially interested in the Mitsubishi Outlander and Outlander Sport. The Outlander Sport has an especially attractive low price, and it also offers a 10/100 and 5/60 Hyundai/Kia-like warranty. It's not particularly impressive in its fit/finish, interior plushness/materials, or road/driving manners (more like just basic AWD transportation). But he seemed quite interested in it......until I ran a dealer-locator check for him, on Mitsubishi's own website, there in Carson City, like I routinely do for those who call me outside of the D.C. area. The closest official Mitsubishi dealership was over 70 miles away......in Roseville, CA, almost all the way to Sacramento, the state capital. All of the other Mitsubishi shops were over 100 miles away. Even here, in the enormously populated D.C. area, we have lost several Mitsubishi shops in the last few years...there are only a few left, mostly up and down I-95. After hearing the minimum distance to the nearest shop, he decided not to even go look......and, of course, there went one more (likely) Mitsubishi sale.

Yes, I know that the counter argument is that the number of Mitsubishi shops have plummeted because of dwindling sales and low demand (the same arguments were made with Isuzu and Suzuki before they folded in the U.S.). There are, of course, two sides to every coin, and that argument has some merit. But I still maintain that, with the present car-buying system most people use, you have to have retail outlets to display and sell your product. Making customers drive a hundred or more miles, even in and near cities, just won't cut it.

Of course, just one simple experience last night, with one (likely) Mitsubishi customer, won't necessarily explain a company-wide decrease in sales and dealerships. But a lot of potential customers (as I suspect is what's happening) being put off by very long drives to a Mitsubishi shop WILL.

bagwell

well I thought it was because they turned all their decent products into total crap....like the Galant and Eclipse.....consumers pretty much have abandoned the brand.....THEN a ton of dealers closed up shop.

bitkahuna

iTrader: (20)

dealer 70 miles away? some people commute that to work.

my nearest lexus dealer is more than 90 miles away.

tex2670

Yeah--I don't think that's an accident. They have put out substandard products for a long time.

Hoovey689

iTrader: (16)

Starion, 3000GT, Turbo AWD Eclipse... long live that Mitsubishi

corradoMR2

Yep, 90s era, then downhill in the 2000s. Dismal Products = dismal sales = dwindling dealerships = downward spiral to departure in N.A.

mmarshall

Yes, I know. Here in the D.C. area, they come in from as far away as PA, DE, near Richmond, and and WV. That's still a long way to drive, though, just to buy a vehicle or to get warranty service.

True. Lexus doesn't have that many shops either.....but at least they haven't been slowly disappearing like with Mitsubishi.

I'd bet that the closest Ford dealer (for your Explorer, if you don't use an independent shop), is closer than 90 miles.

mmarshall

The 2Gen Turbo Eclipse, I'll admit, was fun to drive, but its quality control was one of the poorest I ever saw a modern car. Which is not surprising, considering that it came from that infamous Chrysler/Mitsubishi Diamond-Star plant in Normal, IL, which had almost every kind of labor, racial, sexual-harassment, and vehicle-quality problem you could think of.

mmarshall

Well, like I pointed out in the OP, that's only half of the argument. The fewer retail outlets you have, the fewer vehicles you CAN sell, no matter what the demand.

And one Mitsubshi product (the Evo), like its rival Subaru STI, certainly has a cult-following, at least for those who can tolerate its excessively harsh ride.

SW17LS

I thought you were going to say it was because they cancelled the Diamanté

mmarshall

Though it was a nice car, the Diamante didn't make much difference. It didn't sell. People bought Maximas, Avalons, and Legends instead.

SW17LS

Whoosh! That was the sound of that joke going right over your head

Lex2InfiN

I think it's a bit silly to suggest the reason Mitsubishi isn't doing well is because they don't have enough dealers. They can't make a business case to have MORE dealers because the potential sales numbers just aren't there. They had some hot products back in the day, but Mitsubishi has completely dropped the ball over the years and at this point, they are just an afterthought in the automotive world. I've heard a few nice things about the Outlander, but that's about it. I think ultimately their fate is sealed and they will certainly end up the way Suzuki did. Has nothing to do with a lack of dealers

SW17LS

It's a vicious circle. Sales drop, they close dealers. Lack of dealers reduces consumers access to the product, further reducing sales.

It's not the cause of the problem at its root, but it's a contributing factor to their ongoing problems.

Hoovey689

iTrader: (16)

Consumer Reports hates the Mirage.