Mitsubishi’s announcement of its departure from the UK and Europe may be just the beginning of major disruptions in the automotive industry following the coronavirus pandemic.
The economic damage caused by the virus to international car sales is expected to fall by about 20%. This adds to the demanding situations that brands already face due to the desire to invest heavily in new technologies.
At AM Magazine, David Bailey, a professor of business economics at the Birmingham Business School and a senior member in the UK as a component of a Changing Europe programme, noted that an imminent one is how major automakers will respond to the crisis when faced with great pressure. about money, as consumers delay car purchases.
He said: “The crisis comes at a time when foreign automotive markets have slowed or stagnated anyway, while at the same time car brands have to invest massive sums in a variety of new technologies, especially electric cars (ECs). in fact, betting and scale is considered vital to car brands.
“As a result, car closures will weaken businesses and push them more to merge and consolidate. Automotive corporations will take a look at the investments and models they produce and sell, and where. Mitsubishi’s resolve to withdraw from Europe reflects only the tensions of the alliance, but also those broader trade challenges.
“Expect outages.”
Mitsubishi announced that it will take off from the UK and Europe, confirming that it will bring no new model to the continent.
Existing style stocks, adding the popular Outlander PHEV and L200 pickup, will continue to be sold until they no longer meet emissions regulations.
Due to his “small but beautiful” business model, he said he would abandon expansion as a strategic goal and in minimizing prices and maximizing profits, aiming to reduce prices by 20% in 3 years.
The new planned models that the EU and the UK will miss will come with a new Outlander SUV and an electric battery SUV (2021), a plug-in hybrid Outlander and an L200 pick-up van (2022), as well as the Xpander MPV and Pajero. Sports SUV (2023). ).
Bailey added: “From the consumer’s point of view, withdrawal is a wonderful pity, as the company has pioneered the plug-in hybrid generation in the UK and Europe, for example in its Outlander model. This generation will make its way into the new Renault and Nissan Alliance Models.
“While the alliance’s plan had planned a reorientation of Mitsubishi in Southeast Asia, I still say that Mitsubishi is leaving the UK/Europe market altogether: it expected Mitsubishi models to be assembled on the same platforms as the Renault and Nissan models, and produced, for example, in Sunderland, in order to maximize the alliance’s share of market locations in the region.
“It’s not scheduled at the moment, I wouldn’t rule out the logo resurrecting the UK market this way at some point in the future.”
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Matt has been a motor journalist for four years. As a senior editor, he works in automotive content at Fleet News and also contributes to automotive management. Previously, Matt worked in the automotive industry for 10 years.
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