Why Mitsubishi Motors will discontinue its Pajero SUV soon
The almost-legendary Mitsubishi Pajero off-roader is soon to be withdrawn from its home market in Japan after more than 37 years on sale. Launched in Nigeria more two decades ago, the Mitsubishi Pajero has seen four generations since then, some significant structural changes including the adoption of monocoque construction and coil-spring, four-wheel independent suspension made it something of a standout in the volume-selling 4WD segment. Its main competitors at the time employed ladder-frame chassis construction and used live-axle, leaf-spring suspension.
Japan’s Mitsubishi Motors Corp recently forecast its second straight year of losses hurt by a plunge in sales due to the Coronavirus pandemic partly. The Coronavirus pandemic crisis has exacerbated struggles at the company that had already been battling falling sales in China and southeast Asia, its largest market which accounts for a quarter of its sales. This would be Mitsubishi’s biggest loss in at least 18 years according to company financial records dating back to 2002.
Japan’s No. 6 automaker anticipates an operating loss of 140 billion yen ($1.33 billion) for the year ending March 2021 just as it embarks on a plan to shrink its workforce and production, and close unprofitable dealerships to cut 20 per cent of fixed costs in two years. This is “To pave the way to recovery, the top priority of all executives is to share a sense of crisis with employees to execute cost reductions,” Chief Executive Takeo Kato told reporters.
As part of its restructuring plan, Mitsubishi, a junior member of the Nissan-Renault auto making group, said it would stop making the Pajero SUV crossover model next year, and close the plant in Japan which makes the vehicle.
The restructuring plan is designed to lift the company’s operating profit to 50 billion yen in 2022/23 and boost operating margin to 2.3 per cent from -9.5 per cent now.
Mitsubishi reported a 53.3 billion yen operating loss in the first quarter ended June 30, its second operating loss in three quarters after vehicle sales more than halved to 127,000 units from a year earlier. The company booked extraordinary losses of 116 billion yen in the period and expects such losses to total 220 billion yen this year.
Mitsubishi has sold more than 640,000 Pajeros in Japan since 1981, More than 70 overseas markets, including Australia, will continue to receive Pajeros for the “foreseeable future” after production for the Japanese market ceases in August this year.
In Nigeria, the Mitsubishi Pajero is a hidden treasure with far more spec than most popular competition,and with its better pricing,its has gained more market shares. Recently, the Pajero has done a lot better than in the past, just some few weeks ago, Massilia Motors, A sole distributor of Mitsubishi motor brand in Nigeria unveiled the New generation Pajero Sport in a Virtual launch in Lagos. Massilia motors is the joint ventures of CFAO group and Chanrai group.
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