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Mitsubishi leaves European Market

Discussion in 'Auto News & Rumors' started by KrisW, Jul 27, 2020.

  1. KrisW

    KrisW Well-Known Member

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    MJAB likes this.
  2. ImperialCrown

    ImperialCrown Moderator
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    I think that the Outlander is the only vehicle keeping it here, for now.
     
  3. KrisW

    KrisW Well-Known Member

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    https://www.mitsubishi-motors.com/content/dam/com/ir_en/pdf/irtop/2020/20200727-04.pdf

    140 billion Yen ($1.32 billion, €1.13 billion) loss predicted for 2020.

    A "product introduction freeze" for Europe is a polite euphemism for what the sales network was told. This is an immediate, 100% withdrawal of Mitsubishi Motors from the European car market: when existing inventory is exhausted, no new orders will be accepted. (The "10 years parts and service support" is a legal obligation)

    US market is continuing, but globally the company will be subject to "reduction of fixed costs". Salaries do seem to be a problem, as the presentation talks about a -15% adjustment to compensation globally. I'd imagine the brunt of this will be in the USA given that, as a rule, US executives are paid far more than their global peers, and Mitsubishi's US performance cannot justify that excess anymore - there's also the Japanese culture of senior staff taking responsibility for company performance which means their pay gets cut before the production-line worker's. That said, one wholly-owned subsidiary company's factory in Japan is to close from early 2021.
     
  4. pumadog

    pumadog Well-Known Member

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    I read that Mitsubishi has to focus on the South-East Asian, African and South American markets in the R-N-M alliance.

    It's been decades since they had an attractive model for my eyes.
     
  5. aldo90731

    Staff Member Level III Supporter

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    A last minute announcement sounds just like Mitsubishi.
     
  6. MJAB

    MJAB Well-Known Member

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    They will end production also if the 3 and 5 doors Pajero / Montero / Shogun.

    The Mitsubishi plant that will be closed is the one in the city of Sakahogi (Japan).
     
  7. Citation84

    Citation84 Well-Known Member

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    @ KrisW:"(The "10 years parts and service support" is a legal obligation)".

    I doubt there is a 10 year warranty /100,000 mile warranty in Europe as is offered here in the US on Mitsubishi products.

    And if you are referring to a "10 year obligation to provide parts and service", there is no such law here in the US. They have to honor warranties but are under no obligation to provide parts and service. No such law in any government web site.

    Not one word about that "10 year legal obligation" in the memo. And nothing of the sort on UK automotive sites.
    https://www.mitsubishi-motors.com/content/dam/com/ir_en/pdf/irtop/2020/20200727-04.pdf

    Mitsubishi UK car dealers informed of brand's 'unexpected' market withdrawal (at https://www.am-online.com/news/manufacturer/2020/07/27/mitsubishi-motors-in-the-uk-shares-unexpected-market-withdrawal-plan-with-dealers )

    Mitsubishi's UK exit: full details and what it means for owners (at https://www.msn.com/en-gb/cars/news/mitsubishis-uk-exit-full-details-and-what-it-means-for-owners/ar-BB17pusR )
    See the Q&A for owners.

    Mitsubishi to exit UK market (at https://www.fleetnews.co.uk/news/manufacturer-news/2020/07/28/mitsubishi-to-exit-uk-market )

    Your Warranty Explained | Mitsubishi Motors (at https://www.mitsubishi-motors.co.uk/owners/warranty ) 5 year warranty in the UK

    How long does an automotive manufacturer keep producing spare parts for a discontinued model? - Quora (at https://www.quora.com/How-long-does-an-automotive-manufacturer-keep-producing-spare-parts-for-a-discontinued-model?share=1 )

    Are Auto Manufacturers required under US Federal Law to provide parts for a set period of time? (at https://skeptics.stackexchange.com/questions/14049/are-auto-manufacturers-required-under-us-federal-law-to-provide-parts-for-a-set )

    Post sales service and recalls will be handled by the importer, Colt in the UK. Models currently available will continue until they no longer meet EU emissions, but no new product, a product "freeze" they're calling it. A further announcement seems to be coming later on.

    Colt, the UK importer, will continue to provide parts and service for as long as is practical as well as warranty and recall obligations. [See MSN article above]
     
    #7 Citation84, Jul 31, 2020
    Last edited: Jul 31, 2020
  8. KrisW

    KrisW Well-Known Member

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    This is nothing to do with warranties, it's the requirement to continue to provide spare parts and service support for people who already own the vehicles.

    Mitsubishi cannot simply shut down everything as soon as the last car warranty expires. Owners bought their cars with an expectation of official parts and service being provided on future, and it's not like Mitsubishi has gone bust : they made a choice to leave the market.

    US consumer law is totally irrelevant to the conditions that Mitsubishi must follow after leaving the European market. 10 years was what GM had to provide after shuttering Saab.

    I repeated what my local Mitsubishi dealer told me, which was "stock only, no more cars". That may not be true, but it was the clear message he received from Colt last Tuesday.
     
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  9. MJAB

    MJAB Well-Known Member

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    In European Union the laws about car parts, services, ... are different from U.S.A. ones.

    The manufacturer / importer / seller has some obligations towards the customer who purchased a car.

    The availability of spare parts differs from country to country, anyway usually one can find the spare parts. Since some years it is easier since for many parts / components other aftermarket companies can manufacture the part without permission of the amutomotve company.

    There are several differences also in the access to information for repair / service cars, that the manufacturer has to make public to other companies working in the sector.

    "....
    Access to vehicle repair and maintenance information

    Easy and clear access to information on vehicle repair and maintenance (RMI) is key to guaranteeing free competition on the vehicle aftermarket. Manufacturers must ensure that independent operators have easy, restriction-free, and standardised access to information on the repair and maintenance of vehicles. Discrimination with respect to authorised dealers and repair workshops is not allowed.
    ..."
    Access to vehicle repair and maintenance information - Internal Market, Industry, Entrepreneurship and SMEs - European Commission (at https://ec.europa.eu/growth/sectors/automotive/technical-harmonisation/vehicle-repair-maintenance_en )

    A customer can service a car, that is under manufacturer / importer / seller warranty, wherever he/she wants.

    The design for parts and components can be used by other companies to manufacture parts or components that are equivalent to the original one of the manufacturer of the car.
    https://www.figiefa.eu/wp-content/uploads/r2rc-newberframeworkbrochure.pdf

    The right-to-repair rules in European Union are being introduced, for example also for some house applicances like refrigerators, dishwasher, ...
    It’s about to get a lot easier to repair old appliances in the EU (at https://www.theverge.com/2019/10/1/20893132/european-union-eu-rules-right-to-repair-ecodesign-directive-environmental-spare-parts )
     
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  10. Citation84

    Citation84 Well-Known Member

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    Of course. But no "10 year" rule or legal requirement, just so long as the warranty period requires. Similar to the US.

    A couple of those links are from UK publications. There is a 10 Year/100,000 Mile warranty with Mitsubishi in the States, MJAB. Their UK site says 5 years,62,000 IIRC.

    There are longer warranties on emissions equipment here that go on past the 3/36 warranties that most US manufacturers offer
     
  11. Citation84

    Citation84 Well-Known Member

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    There is no legal requirement to supply parts for 10 years. Did you not follow any links ?
    https://www.hemmings.com/stories/20...aily&utm_medium=email&utm_campaign=2020-08-03

    And no.GM did NOT have to supply parts for 10 years for SAAB. Only as long as the warranty was in force
    Orphan Cars And The 10 Year Parts Myth (at https://www.thetruthaboutcars.com/2015/07/orphan-cars-10-year-parts-myth/ )

    I posted the UK article. Can you not read ? Mitsubishi's UK exit: full details and what it means for owners (at https://www.msn.com/en-gb/cars/news/mitsubishis-uk-exit-full-details-and-what-it-means-for-owners/ar-BB17pusR )
    See the Q&A for owners.

    You have no idea there';s a 10 year rule in the UK or Europe . You just added that thinking there was one in the US so there must be one in the EU and UK. There isn't.

    Stop spreading nonsense. Mitsubishi is not just "shutting down everything" [you obviously didn't bother to read the links, so just stop. You don't know what you're talking about].They are putting a freeze on new models and continuing to supply the older ones until they no longer meet EU emissions. That's what was written. Not your speculation. No "10 year rule" in the memo.
    You're the one who added that on your own.

    HELLO:
    Are Auto Manufacturers required under US Federal Law to provide parts for a set period of time? (at https://skeptics.stackexchange.com/questions/14049/are-auto-manufacturers-required-under-us-federal-law-to-provide-parts-for-a-set )
    And again: the Colt Importer will supply service and parts and warranty/recall work as long as it is viable.
    Colt, the UK importer, will continue to provide parts and service for as long as is practical as well as warranty and recall obligations. [See MSN article above]

    All the Federal law links you need. You won't find a "10 Year Rule" anywhere
    Auto Regulations | Federal Regulation of Aftermarket Parts | SEMA (at https://www.sema.org/federal-regulation-aftermarket-parts )

    US consumer law is totally irrelevant to the conditions that Mitsubishi must follow after leaving the European market. Let's see the link to the 10 year law.

    Never mentioned in any of the articles.
     
    #11 Citation84, Aug 3, 2020
    Last edited: Aug 3, 2020
  12. Citation84

    Citation84 Well-Known Member

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    MJAB: Any "10 year" auto parts rule you can cite ? It would be interesting to see that.

    Looks like that will happen with appliances.
     
    #12 Citation84, Aug 3, 2020
    Last edited: Aug 3, 2020
  13. MJAB

    MJAB Well-Known Member

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    I don't know, the legislation is complicated and differs from country to country in European Union.
    Some countries, like Germany and France, have always boycotted the laws for the consumers right-to-repair.

    I think for most is left to the good will of the manufacturers (after warranty period end).
    For some parts I think the availability is long, for example body parts corrosion warranty, since the many years of warranty promised by manufacturers.


    Repair clause for Spare parts: Motor vehicle rims in case law | Legal Patent (at https://legal-patent.com/design-law-en/repair-clause-for-spare-parts-motor-vehicle-rims-in-case-law/ )
     
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  14. KrisW

    KrisW Well-Known Member

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    I posted the original story on Tuesday, based on information received by my dealership from Colt that morning. You have a beef about incorrect information, take it up with Colt, because what I posted was exactly what they told their own dealers. Sure, they clarified later, but what I posted was what they said then. Sorry for not being able to tell the future, but again, blame lies with Mitsubishi for spreading this misinformation by not writing a clear communication. (I read it)

    US Federal law, again, has no bearing on what is required in Europe.. I did read the articles you posted, and those referring to old parts are all about the USA.

    I really don't like the tone of your responses. I posted information as I had it at the time because it was likely to be of interest. You don't like that, just don't read it, block me or something.. jumping down my throat because you had bad day is not cool.
     
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  15. Citation84

    Citation84 Well-Known Member

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    Not having a bad day at all. Your "10 year rule" either here or in the UK or EU is nonsense. Provide the link.

    What you initially posted said zip about a 10 year "rule". You added that on your own..

    BTW: General Motors Chapter 11 reorganization - Wikipedia (at https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization )

    Sale of Saab[edit]
    On June 16, 2009, it was announced that the Swedish firm Koenigsegg Automotive AB and a group of Norwegian investors planned to acquire the Saab brand from General Motors. GM would have continued to supply architecture and powertrain technology for an unspecified amount of time.[56] On November 24, 2009, it was announced that the sale of Saab to the Koenigsegg Group had collapsed.[57]

    "We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM CEO Fritz Henderson in a statement. "Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week."[58]

    On February 23, 2010 GM sold Saab to Spyker Cars, later renamed Swedish Automobile.

    BK GM had no 10 year obligation after it sold out except to fulfill obligations for cars GM sold still under warranty. But still no 10 year "rule".

    Provide the link.
     
  16. Citation84

    Citation84 Well-Known Member

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    Sounds right to me.
     
  17. Citation84

    Citation84 Well-Known Member

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    Not going to do that, Kris. I have never blocked anyone.

    One of the moderators here came at me out of the blue and did the same thing. Badgering until I agreed with him and then claimed I was "so inconsistent".

    You're right. My tone was very aggressive. Not my intent.

    My sincere apologies.
     
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  18. KrisW

    KrisW Well-Known Member

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