Mitsubishi has officially reversed its plans to back out of Europe.
The re-badged Renault vehicles will maintain Mitsubishi’s DNA.
Back in the summer of 2020, Mitsubishi reported that they were to cut back on their European business. Citing massive net losses and shrinking market share, they announced that they would freeze all-new model introductions effective immediately on the Old Continent. Only a few weeks ago, Mitsubishi changed its mind.
Many think that their mind was changed for them however we won’t speculate here. The new plan involved Renault, of the Renault-Nissan-Mitsubishi Alliance, building new Mitsubishi vehicles for the small Japanese automaker in its factories.
Today, Mitsubishi has announced that, in fact, they’ve agreed to procure new vehicles from Renault starting in 2023. Mitsubishi will sell two “sister models” produced by Renault in its plants. Thus, these models will platforms (assumingly powertrains, technologies, and more) however they will be treated to Mitsubishi brand’s DNA as a form of differentiation.
Here are statements from three company officials:
“I am very happy to see Mitsubishi Motors building a new line-up in Europe. The Alliance aims to enhance competitiveness and enable more effective resource-sharing for the benefit of all three companies. Our approach is collaborative, relying on mutual respect, with a clear intention to boost the performance of each company, allowing individual companies to capitalise on their own strengths, avoid duplication of resources and improve efficiencies,” said Jean-Dominique Senard, Chairman of the Alliance Operating Board and Renault.
“Mitsubishi Motors welcomes Renault’s OEM models for the European market, and ultimately new customers. Mitsubishi Motors has been implementing structural reforms in Europe and our decision to freeze new car development for the European Market, announced in July 2020 in our mid-term business plans, remains. However, the OEM supply agreement will provide us with a solution to offer new products developed and manufactured in Europe– alongside our ongoing after sales business,” said Takao Kato, CEO Mitsubishi Motors.
“Our new approach within the Alliance, focusing on impactful and meaningful projects, is turning into reality. This pragmatic, value-driven initiative will make a difference in our plants, in our partner’s footprint and on the European streets. This beautiful project meets all partners’ expectations from a design, regulatory and business perspective. This is what the Alliance is meant for and we are very happy, at Groupe Renault, to contribute to this new step in its history of cooperation.” said Luca de Meo, CEO Groupe Renault.
