Mitsubishi CEO promises an electrified U.S. rebound

TOKYO -- Mitsubishi Motors Corp. will fortify its fragile U.S. rebound with three electrified crossovers in five years, a bolstered regulatory listening post in Washington, D.C., and a new advanced technology office in Silicon Valley opening in January.

CEO Osamu Masuko told Automotive News the Japanese carmaker will channel limited resources into a more compact lineup after closing its only U.S. assembly plant.

That likely means no new sedan to succeed the aging Lancer and no dedicated electric vehicle to replace the subcompact i-MiEV, he said.

Instead, Mitsubishi will introduce a new small coupe-styled crossover after the fall of 2017 to slot between the midsize Outlander and the compact Outlander Sport. A redesigned Outlander will arrive sometime after 2017, and the next-generation Outlander Sport will arrive around 2019, Masuko said.

"We are strong in SUVs and four-wheel drives. And that is what we would like to focus on as core models in the U.S. market. We have changed direction," Masuko said. "We are going to allocate more resources to the areas where we are strong in the U.S."

To keep the nameplates fresh until their full-model changes, Mitsubishi will roll out "big minor changes," such as the retooled Outlander Sport and face-lifted Mirage subcompact hatchback unveiled at the Los Angeles Auto Show in November.

Mitsubishi also will launch the Outlander PHEV, the plug-in hybrid version of the nameplate's current generation, in the U.S. in the middle of next year.

The other three coming crossovers will get electrified drivetrains as variants to the standard gasoline versions, Masuko said.

The redesigned Outlander and new crossover will get plug-in hybrid variants, while the Outlander Sport will go all-electric alongside its traditional gasoline model.

The lineup overhaul comes as Mitsubishi positions crossovers, which account for 58 percent of its U.S. volume, as a pillar of its revival plan. Its U.S. sales climbed 25 percent to 80,683 vehicles through October, thanks largely to booming crossover demand.

Refocusing on crossovers will help Mitsubishi prioritize investments and cut costs.

The carmaker said in July it will stop manufacturing vehicles at its Normal, Ill., factory as part of global realignment to concentrate production in Japan, Russia and Southeast Asia.

Electrification is a key element of the roadmap. Mitsubishi aims to equip the wave of electrified crossovers with a next-generation lithium ion battery, Masuko said.

In Japan, Mitsubishi will also introduce a minicar -- to serve a strong segment in the domestic market -- with a gasoline drivetrain and an optional electric one. But to maximize r&d resources, Mitsubishi won't pursue another dedicated EV such as the i-MiEV, Masuko said.

Also on hold is a sedan to replace the Lancer or succeed the discontinued Galant. Masuko said there are no plans for such a car because Mitsubishi doesn't have the resources to develop one alone and hasn't been able to find a partner to supply one.

Talks to get a sedan through Renault SA fell through, and Mitsubishi is not in talks with any other automaker, he said.

In terms of passenger cars, the U.S. lineup will continue to lean on the Thailand-made Mirage and its sedan variant.

The latter, expected to be called the G4 for the U.S. market, is expected to arrive stateside next spring. Both those cars will stick to traditional gasoline drivetrains, Masuko said.

Mitsubishi also has no plans for a next-generation full-size Pajero SUV, Masuko said. The Pajero was sold as the Montero in the U.S. until being discontinued there in 2006, and there had been speculation that a redesign would return to the U.S. market.

But Masuko said his company now has no plans for a successor model in any market because of fuel economy concerns.

To keep better tabs on emissions rules and safety regulations, Mitsubishi is dispatching for the first time an official from Japan to serve at its Washington, D.C., regulatory outpost.

The goal is to establish better communications between the head office in Japan and U.S. regulators, which have wielded increasingly weighty influence in recent years.

Mitsubishi also will follow other automakers in setting up an operation in Silicon Valley to monitor the latest developments in autonomous driving and artificial intelligence. That office opens in January and initially will be staffed by two Japanese employees, said Masuko, who visited in May to lay the groundwork.

"The U.S. is a cutting-edge car market," Masuko said. "There is much we can learn from being there. ... I thought it would be good to send a younger generation of employees to learn from them."

Still, Mitsubishi's California plan pales in comparison with investments made by bigger rivals. Toyota Motor Corp., for example, said in November it will spend $1 billion on a new Silicon Valley subsidiary with 200 workers.

"It's a very small office," Masuko conceded. "But we are going to learn the future direction of technology and our business."