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Mitsubishi ends production in Australia

Mitsubishi ends production in Australia

Siddarth Raja February 5th, 2008 Siddarth Raja By Siddarth Raja Author February 5th, 2008
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December 31st, 1969 Global economic forces and poor sales of the Australian built 380 sedan (essentially a rebadged Galant) has forced Mitsubishi to end production at its Adelaide factory from the end of next month. Mitsubishi will remain in Australia as an importer but there are no plans in place to revive local production anytime soon. Mitsubishi first started building cars at the Tonsley Park site back in 1980 after acquiring the plant from Chrysler. An official statement from the Aussie division’s Chief Robert McEniry stated the reason behind the closure was because of "changing consumer behaviors and buying patterns" in the Australian market. The 380 sedan is the only car Mitsubishi builds at the site, but sales of large sedans in Australia have fallen dramatically over the years despite the market achieving record sales year after year, reports the Associated Press. Up to 930 employees will lose their job and the 380 will be discontinued from Mitsubishi’s local lineup. Officials made several major blunders when launching the new 380 back in 2005. The biggest mistake was dropping the longstanding ‘Magna’ nameplate, which officials deemed had a boring image. Also, the 380 which replaced the previous Magna sedan was too dull when compared directly with rival RWD sedans from Holden and Ford. This also meant that the cars depreciated much more rapidly than its rivals and led to its sales demise.
Mitsubishi ends production in Australia

Mitsubishi ends production in Australia

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Global economic forces and poor sales of the Australian built 380 sedan (essentially a rebadged Galant) has forced Mitsubishi to end production at its Adelaide factory from the end of next month. Mitsubishi will remain in Australia as an importer but there are no plans in place to revive local production anytime soon. Mitsubishi first started building cars at the Tonsley Park site back in 1980 after acquiring the plant from Chrysler.

An official statement from the Aussie division’s Chief Robert McEniry stated the reason behind the closure was because of "changing consumer behaviors and buying patterns" in the Australian market. The 380 sedan is the only car Mitsubishi builds at the site, but sales of large sedans in Australia have fallen dramatically over the years despite the market achieving record sales year after year, reports the Associated Press.

Up to 930 employees will lose their job and the 380 will be discontinued from Mitsubishi’s local lineup. Officials made several major blunders when launching the new 380 back in 2005. The biggest mistake was dropping the longstanding ‘Magna’ nameplate, which officials deemed had a boring image. Also, the 380 which replaced the previous Magna sedan was too dull when compared directly with rival RWD sedans from Holden and Ford. This also meant that the cars depreciated much more rapidly than its rivals and led to its sales demise.

Tags: Industry

Posted in: Mitsubishi, News


Comments (3 total)

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  1. By Sir Yappie #1, Posted: 2/5/2008

    Mitsubishi Australia shot themselves in the foot when they dropped the name MAGNA. It was a cash cow for them as a plate name that everyone new and trusted and had been around for a long time and won a couple of Car of the Year awards in Oz.

    Toyota Australia have used this as an example of not what to do and kept the Corolla name for the latest incarnation of the words most popular small car, instead of changing to the frankly quite stupid Auris. Because of this, buyers have the familiarity of a brand and a model that they know of and can depend on. This is not to say that the buying public are stupid but they want that security and can trust when making such an expensive purchase.

    Mitsubishi believed that they needed to start afresh. If they wanted to do that they should have either brought back the Galant nameplate or call the new car the Magna 380. The execs only have themselves to blame and because of this 1000 skilled workers have lost their jobs in a community that relies on the factory.
    Forshame Mitsubishi Australia forshame

  2. By mark #2, Posted: 3/28/2008

    I Agree with sir yappie 100% on his comments. Also look at nissan dropping the local Pulsar Name for the stupid Tiida name and sales suffered.

  3. By Mike #3, Posted: 8/1/2008

    Manufacturers are increasingly getting rid of the manufacturing plants in developed nations due to high labor and raw materials costs. As with the demise of Motor City in America, manufacturers can build cars of the same quality in a locale with labor costs that are nearly half. As core materials to build automobiles become more expensive everyday they cannot keep a plant in operation if thevehicles they are producing are not selling. Shame on the ignorant consumers that can't see that this is the same car and don't buy it because of a name change.

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