Mitsubishi dealers struggle with low sales, high prices, and an aging vehicle lineup.
Rising costs and reduced incentives are eroding dealer profitability, forcing some to exit the franchise.
Mitsubishi plans dealer support measures but faces pressure to expand its lineup and boost incentives.
Mitsubishi dealers in North America are calling for urgent intervention from company leadership to address declining profitability. A combination of a limited vehicle lineup, rising prices, and weak consumer demand has made it difficult for dealerships to sustain their businesses.
Mitsubishi’s 330 U.S. stores sold only about 66,000 new vehicles in 2024, averaging only 17 sales per dealership per month—well below the 30-unit threshold dealers say is needed for profitability. According to internal financial data, average net profit per Mitsubishi dealership fell by nearly half since 2020 to $434,199 last year. Profit margins also dropped from 2.2% in 2023 to 0.92% in 2024.
In contrast, Mitsubishi Canada sold 38,921 vehicles in 2024, a 9% increase over the previous year. The Outlander PHEV became the first Mitsubishi model in Canada to surpass 10,000 sales, reaching 14,290 units—up 44% from 2023 and accounting for 36.7% of total sales. Including the gasoline-powered version, total Outlander sales hit 23,295 units. Other models included 7,402 RVRs, 5,292 Eclipse Crosses, and 2,932 Mirages.
Mitsubishi Motors’ Record Sales Mask Weakness in Broader Lineup
While there’s hope in Canada thanks to Mitsubishi’s Momentum 2030 plan, which will see the brand launch a new or updated model annually through the end of the decade, it’s not enough, according to American retailers.
Several dealers are closing stores or considering leaving the franchise. One retailer reported losing up to $80,000 per month, while a former dealer who exited the business last year said they lost $300 to $400 on every new car sold.
A key challenge is Mitsubishi’s aging and limited product lineup. The Outlander Sport (RVR) dates back to 2011, while the Eclipse Cross and Outlander were last redesigned in 2021. With production of the subcompact Mirage—Mitsubishi’s second-best-selling model—ending last year, dealers expect to run out of inventory by late summer.
Rising vehicle prices and reduced factory incentives have also hurt sales. Between 2020 and 2024, the average Mitsubishi sticker price increased 22% to $31,338, while incentive spending fell 26% to $2,741 per vehicle. Mitsubishi’s inventory turn rate stood at 97 days at the end of January—one-third longer than the industry average—forcing dealers to discount vehicles heavily.
In response, Mitsubishi Motors North America CEO Mark Chaffin said improving dealer profitability is his top priority in 2025. The company has adjusted dealer margin structures, introduced trade-in rebates, and increased volume bonuses. Chaffin said these changes led to an 86% increase in the number of dealerships selling 30 or more vehicles per month.
Still, dealers warn that Mitsubishi’s reliance on fleet sales is adding pressure. Approximately 40% of the brand’s 109,843 U.S. sales in 2024 went to fleet customers, increasing the supply of nearly new vehicles at steep discounts.
With fewer consumers considering Mitsubishi, retailers increasingly rely on used cars for survival. Many say the brand must increase incentives and expand its lineup to compete with Toyota, Hyundai, and Kia.
Source: Automotive News
