Remember the famous deli scene from the film When Harry Met Sally? It's the one that closes with "I want what she's having."
Spend some time with the new executives of Mitsubishi Motors North America, and you'll want an order of their optimism, confidence, even exuberance. Or is it delusion?
Rich Gilligan, a Mitsubishi manufacturing guy since 1998 who spent three decades with Ford, was promoted to president and CEO of Mitsubishi Motors North America in January. He replaced Hyundai genius Finbarr O'Neill, who bailed from Mitsubishi after only 16 months at the helm.
To further boost U.S. operations, the parent company sent Hideyasu Tagaya from Japan to serve as chairman of North American operations. In addition, Gilligan, a month after taking over, recruited Mercedes-Benz marketing exec Dave Schembri, who was in charge of the Smart brand in the U.S., to be the new head of sales and marketing.
At the New York auto show in March, Gilligan and Schembri appeared absolutely and enthusiastically convinced of their ability to turn around Mitsubishi. They see what is invisible to most others — positive signs it can be done.
The biggest plus, they insist, is strong product — current and future. Unquestionably, product is the vital key to every auto company turnaround. It is one that is absent from the other failing Japanese brand in the U.S., Isuzu, which relies solely on rebranded General Motors models for its entire portfolio of now only a couple vehicles.
In contrast, Mitsubishi has a trio of promising new models coming this year alone. In June, Mitsubishi introduces the long-awaited, next-generation Eclipse coupe, which was once a favorite of enthusiasts. In October, it launches the newest and ninth version of its Lancer Evolution. Few cars have ever won over enthusiasts and achieved the cult status of the "Evo" high-performance sedan, the "rock star" of the Mitsubishi line, as Gilligan refers to it. This year's mild makeover is merely a prelude to a complete redo — the Evo X — next year.
In the fall, the Raider midsize pickup truck goes on sale. It marks Mitsubishi's first pickup truck since the 1990s. While the Raider is a Mitsubishi version of the Dodge Dakota, it has enough styling differentiation to make it interesting.
Instead of deep discounts and a long warranty, Mitsubishi's new advertising that launches in June from its new ad agency BBDO will make the cars the stars, Schembri insists. (New regimes always change ad agencies when they take over, just as homeowners change wallpaper in their new houses.)
"The most aggressive product offensive in Mitsubishi history," as Gilligan calls it, will continue into 2006. Upcoming models include the 2006 Eclipse Spyder next April, a special-edition Galant next May and the freshened Endeavor, Outlander and Lancer in the 2006 model year.
In addition to products, Mitsubishi's new officials see other promising signs.Mitsubishi has a long, mostly successful sales track record in the U.S. where it has sold 4 million vehicles since it came here in 1982; of those, half remain on the road.
Thanks to spirited cars and a catchy advertising campaign in recent years that featured a pounding beat and hip, young people, Mitsubishi has established a strong position in the market as fun cars for youth. In fact, Mitsubishi and VW vie for the title of youngest average buyers at 39; Toyota's Scion is at 40, says Schembri.
It should be noted, however, that Mitsubishi gained many of those young buyers by giving credit to ones who didn't deserve it and couldn't make the payments, forcing Mitsubishi to repossess the cars at a huge cost. More important than attracting a specific age demographic, says Schembri, Mitsubishi has a "fun-seeking status" regardless of age, ideal for wooing baby boomers who refuse to grow up.
Mitsubishi's new execs further point out the brand has a strong retail network with 70 percent of its dealers having Mitsubishi-exclusive dealerships. Stand-alone dealerships are always considered a huge plus for carmakers as the dealers live and die by that one brand, and thus focus their attention on it.
Further, despite the parent's woes, Mitsubishi in Japan remains the world's 12th largest corporation, they note.
Never mind that rumors persist that Mitsubishi will be the next brand to go the way of Oldsmobile and DeSoto. The Wall Street Journal reported earlier this year that Mitsubishi was quietly looking for a buyer for its U.S. manufacturing operation in Normal, Illinois, where the last of the Chrysler models recently rolled off the line. Mitsubishi denied any intentions of exiting the U.S. and any pursuit of such a sale.
Never mind that Mitsubishi sells only about half the vehicles it once did in the U.S. At its peak, it sold more than 300,000 vehicles a year; last year, it sold 161,609, and about 30 percent of those were to rental and company fleets, which don't generate as much income as retail sales and damage residual values and image.
Never mind that scandals in Japan and unusual, if not scandalous, business practices still being uncovered in the U.S. continue to plague the company. Never mind that executives continue to depart the company. As Gilligan and Schembri were spreading the gospel at the New York auto show in March, for instance, two more company officials left.
Indeed, turnarounds happen. Look at Chrysler, Nissan and Volkswagen, the Mitsubishi folks point out.
In any event, you have to admire this new team; their exuberance is almost contagious. But didn't Finbarr O'Neill have the same disease only months ago?
Spend some time with the new executives of Mitsubishi Motors North America, and you'll want an order of their optimism, confidence, even exuberance. Or is it delusion?
Rich Gilligan, a Mitsubishi manufacturing guy since 1998 who spent three decades with Ford, was promoted to president and CEO of Mitsubishi Motors North America in January. He replaced Hyundai genius Finbarr O'Neill, who bailed from Mitsubishi after only 16 months at the helm.
To further boost U.S. operations, the parent company sent Hideyasu Tagaya from Japan to serve as chairman of North American operations. In addition, Gilligan, a month after taking over, recruited Mercedes-Benz marketing exec Dave Schembri, who was in charge of the Smart brand in the U.S., to be the new head of sales and marketing.
At the New York auto show in March, Gilligan and Schembri appeared absolutely and enthusiastically convinced of their ability to turn around Mitsubishi. They see what is invisible to most others — positive signs it can be done.
The biggest plus, they insist, is strong product — current and future. Unquestionably, product is the vital key to every auto company turnaround. It is one that is absent from the other failing Japanese brand in the U.S., Isuzu, which relies solely on rebranded General Motors models for its entire portfolio of now only a couple vehicles.
In contrast, Mitsubishi has a trio of promising new models coming this year alone. In June, Mitsubishi introduces the long-awaited, next-generation Eclipse coupe, which was once a favorite of enthusiasts. In October, it launches the newest and ninth version of its Lancer Evolution. Few cars have ever won over enthusiasts and achieved the cult status of the "Evo" high-performance sedan, the "rock star" of the Mitsubishi line, as Gilligan refers to it. This year's mild makeover is merely a prelude to a complete redo — the Evo X — next year.
In the fall, the Raider midsize pickup truck goes on sale. It marks Mitsubishi's first pickup truck since the 1990s. While the Raider is a Mitsubishi version of the Dodge Dakota, it has enough styling differentiation to make it interesting.
Instead of deep discounts and a long warranty, Mitsubishi's new advertising that launches in June from its new ad agency BBDO will make the cars the stars, Schembri insists. (New regimes always change ad agencies when they take over, just as homeowners change wallpaper in their new houses.)
"The most aggressive product offensive in Mitsubishi history," as Gilligan calls it, will continue into 2006. Upcoming models include the 2006 Eclipse Spyder next April, a special-edition Galant next May and the freshened Endeavor, Outlander and Lancer in the 2006 model year.
In addition to products, Mitsubishi's new officials see other promising signs.Mitsubishi has a long, mostly successful sales track record in the U.S. where it has sold 4 million vehicles since it came here in 1982; of those, half remain on the road.
Thanks to spirited cars and a catchy advertising campaign in recent years that featured a pounding beat and hip, young people, Mitsubishi has established a strong position in the market as fun cars for youth. In fact, Mitsubishi and VW vie for the title of youngest average buyers at 39; Toyota's Scion is at 40, says Schembri.
It should be noted, however, that Mitsubishi gained many of those young buyers by giving credit to ones who didn't deserve it and couldn't make the payments, forcing Mitsubishi to repossess the cars at a huge cost. More important than attracting a specific age demographic, says Schembri, Mitsubishi has a "fun-seeking status" regardless of age, ideal for wooing baby boomers who refuse to grow up.
Mitsubishi's new execs further point out the brand has a strong retail network with 70 percent of its dealers having Mitsubishi-exclusive dealerships. Stand-alone dealerships are always considered a huge plus for carmakers as the dealers live and die by that one brand, and thus focus their attention on it.
Further, despite the parent's woes, Mitsubishi in Japan remains the world's 12th largest corporation, they note.
Never mind that rumors persist that Mitsubishi will be the next brand to go the way of Oldsmobile and DeSoto. The Wall Street Journal reported earlier this year that Mitsubishi was quietly looking for a buyer for its U.S. manufacturing operation in Normal, Illinois, where the last of the Chrysler models recently rolled off the line. Mitsubishi denied any intentions of exiting the U.S. and any pursuit of such a sale.
Never mind that Mitsubishi sells only about half the vehicles it once did in the U.S. At its peak, it sold more than 300,000 vehicles a year; last year, it sold 161,609, and about 30 percent of those were to rental and company fleets, which don't generate as much income as retail sales and damage residual values and image.
Never mind that scandals in Japan and unusual, if not scandalous, business practices still being uncovered in the U.S. continue to plague the company. Never mind that executives continue to depart the company. As Gilligan and Schembri were spreading the gospel at the New York auto show in March, for instance, two more company officials left.
Indeed, turnarounds happen. Look at Chrysler, Nissan and Volkswagen, the Mitsubishi folks point out.
In any event, you have to admire this new team; their exuberance is almost contagious. But didn't Finbarr O'Neill have the same disease only months ago?
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