Last post on Nov 24, 2012 at 8:04 PM
You are in the Mitsubishi Galant
What is this discussion about?
Mitsubishi Galant, Sedan
May 06, 2004 (10:05 am)
I think all this talk about Mitsubishi sales being low enough for them to go belly-up are a bit exaggerated. Yes, they aren't selling as well as they did back in 2001. But they are still selling plenty of cars to stay in business. For example, the highly regarded VW Passat has only sold 9893 units in the first 3 months of 2004 whereas 14,528 Galants have been sold. Mazda sold less then 1000 more of their 6 sedan. The Lancer sold 14,467 compared to 14,679 Jettas. Mitsu can't keep up with the big sellers but their average sales are keeping them ahead of companies that do just fine on lower sales, such as Mazda, Suzuki, VW, and Subaru.
May 06, 2004 (10:23 am)
Sales matter, but not to the degree that is presented here. Theres a lot that happens in between sales and Net on the Income Statement. Ingtonge, I know youre a Mitsu fan, but seriously, who do think earns better margins on its sales? VW or Mitsu... Mitsu has significant carryover debt from the distastrous and stupid 0/0/0 offer, Mitsu offers higher average rebate/financing than competing non domestic makes, costs will increase due to the free (impressive) powertrain warranty extension, AS WELL as the recently announced scheduled maintence. Save the Eclipse, which competes in a low-ish volume market, there are relatively few vehicles in the pipeline. So exactly where is Mitsu getting the cash continue as a going concern without worry? Theres only so much the other Mitsu companies can offer. There needs to be some kind of White Knight player in this deal, as Renault/Carlos Ghosn was to Nissan. To this point, there isnt.
cracovian- A few notes. The Camry is selling well because it is a good car, but also because regional incentives (though varied) offer up to $1000 back or attractive financing. The Accord offers only Attractive financing, and doesnt see the degree of fleet sales that the Camry does (about 12%). Margins on Accords are enough to offset the marginal sales drop. Altima sales are up, but this is likely because of the revisions to the 2005 model, AND ALSO because of cannibalization effects on the Maxima. Check out those figures. Down by about 47% month to year earlier, and over 20% on the calendar year to date. Finally, the Impala is seeing an insane amount of fleet sales, as Dodge stopped producing its fleet favorite Intrepid months ago, has little desire to cast the 300 in the same light, and Ford has pulled back rental sales as well.
#1598 of 2502 Re: sales [lngtonge18 #1596]
May 06, 2004 (4:15 pm)
Mitsu sales at a glance may not be that bad but I read somewhere that nearly 50% of their sales were now attributed to fleet sales.
#1599 of 2502 mitsu seems headed for serious trouble
May 06, 2004 (6:38 pm)
There simply is no compelling reason to buy a Mitsubishi product, which is sad for me to say because the '90 Eclipse Turbo I once steered even to this day remains one of my all-time favorite rides. I'd buy that car brand new in a second.
But, with the company in serious financial trouble and its product line running from average to mediocre, why take the risk? If you want fun and dependability in a midsize Asian, there is the Altima and the MZ6. The Galant has reasonably edgy styling and a kick butt power plant, but after that it can't quite hang with the class leaders.
The resale is going to be abysmal because, as noted above, the big rebates will be coming soon. My advice to anyone interested in a Galant would be to lease and let Mitsu worry about the resale.
#1600 of 2502 Re: I Don't Blame Chrysler!! [noleasegalant #1594]
May 06, 2004 (7:19 pm)
Whoa, hold on a minute!
As, I stated in my previous post, I just purchased a former rental '03 Galant this past Friday. I purchased an ES with 16,000 miles on it for $10,400.00. These former "rental vehicles" is part of what is keeping Mitsu afloat. When I see a value, I jumped on it. I think one of the reasons (there are many) that Chrysler cannot afford to bail out Mitsu anymore is because the German ownership has created a MESS AT CHRYSLER and are pouring money in to it! This one will go down in business case study....How to ruin a perfectly good car company!
May 06, 2004 (8:25 pm)
"As, I stated in my previous post, I just purchased a former rental '03 Galant this past Friday. I purchased an ES with 16,000 miles on it for $10,400.00. These former "rental vehicles" is part of what is keeping Mitsu afloat."
The only way a second hand sale would be keeping Mitsu afloat is IF the second hand sale was made through a Mitsu dealership. Did you buy your Galant (yes, quite a used value, I agree, but a stunningly unattractive new car proposition for that very reason) from a dealership?
That said, Im hard pressed to think that the ratio is 50%. Thats incredible, almost to the point of being unbelievable. Can anyone offer a citation on this?
#1602 of 2502 Re: ? [alpha01 #1601] '03 Former Rental Galant ES
May 06, 2004 (9:44 pm)
the car was purchased from a Mitsubishi dealership, located in Southern California. If you know how to negotiate (I am in Sales myself) Southern California is the place where prices are lowest. They did lowball me on my trade. The details are as follows:
Cash price of Vehicle $10,400.00
Doc fee 45.00
Smog Fee 50.00
Sales tax 813.36
Smog Certificate 8.25
LESS TRADE 3,000.00
According to Edmund's, the private party price is $10.098.00. As I stated, I paid $10,400.00 at a VOLUME Mitsubishi store! I was also in a position where I paid CASH. Nothing motivates better at a car dealership than a check-made out to the dealership-and you tell them, "All I have to do is fill in a agreed upon amount!".
#1603 of 2502 Two things, chuck...
May 07, 2004 (7:12 am)
1. You said yourself that you paid $1300 more than a private party sale for a rental car - I might be missing something but how does this make a better deal???
2. Dealers DO NOT get motivated by a blank check. They'd rather have a trade-in involved (you said you got taken here too) and financing which they make a lot more money on than anything else.
But since it's all in the mind and you're happy then it's all that matters...
#1605 of 2502 Not a mistsu guy but...
May 07, 2004 (12:08 pm)
Interesting article above. thanks for posting. As someone that drives lots of cars I think Mitsubishi is doing some things well, other things a bit iffy. The outlander's stark but elegant interior and firm ride makes it one of my favorite small suvs. And the Evo..well what can be said. Everything else though?
If they can reinvigorate the Eclipse the way the concept car promises, does something to the standard Lancer so it doesn't look like a wind-up toy with no style they'll be ok. The SUVs seem solid and I see them all the time on the road. The galant is nowhere to be seen. i'm driving one this weekend so will see what i think compared to the rest. I prefer the 6 right now to everything else mainly due to style and fun to drive factor.