Stock is down to $ 1.20 per share.[:-]

This could go two ways in the next two years,

#1 Goodbye [&o]

#2 Mitsu Motors could turn around and the stock could go to a normal level for an
automobile producer.

Whaddoyaguys think ? I'm serious, what are your opinions ?

Dan

 

i hope they make a comeback, but i wouldnt buy any stock in them........

 

ok, i take that back, after seein the new 06 'clipse i might put faith in them once again, if the car is reasonably priced..........and if it performs well.........

 

Mitsubishi needs to decide what direction they want to go in. They have a couple of options, they can :

A: Make sturdy, well built, and well priced passenger vehicles to battle the Camry/Accord and Corolla/Civic, and then become a major facet in the sedan market. After establishing themselves in the market, they can then venture out into a premium brand name like Toyota did with Lexus or Honda and Acura.

B: Make exclusivley Sporty cars such as Mazda is trying to do(and somewhat failing at, although they are excelling in the market). Refrain from SUV and mundane sedan designs, and try to establish themselves as a brand that makes focuses on performance vehicles.

C: Make SUV's.

See, Mitsu is in a dilemna. They don't have anything they can really boast about. They don't make a reliable car like Toyota. They don't have the Technology like Honda. And they can't compete with the prices of Domestic Manufacturers. They're continuing to try to cover every aspect of the market, from SUVs to sports cars, however they can't succeed since every other manufacturer is large enough to dominate or out-do them in that field. Obviously option C is out, with companies like Jeep and Hummer covering all price ranges and making SUVs with killer prices. Also, Toyota has like 5 SUV's and GM.....well GM can feature durable SUV's with reasonable prices, and push Mitsu out of the market. That leaves option A and B. As you can see from history, Toyota and Honda did option A back in the 80's and 90's and are now among two of the largest self standing manufacturers. However, since they have dominated the sedan and sub-compact market, option A is leaves little chance for success. Option B is now becoming a major route for many manufacturers. Mazda is touting it's ability to make a sedan that drives like a sports car and has reborn its quintessential sports car, The RX-8. Mazda is also releasing and advertising it's line of Mazdaspeed vehicles, offering even more glorified versions of it's already sporty cars. However, they still make sedans and SUVs, so they are not exclusively Sportscar Manufacturers. Nissan has even released special versions of it's best sellers. The Sentra SE-R was revamped, they dropped the SR20 engine in 2002 and moved to the QR25. To add even more of a sporty feeling, they introduced the SpecV model. Toyota is moving a bit more slowly to sports car segment though, They continue keep the Solara and IS300 as refined and comfortable as possible, but still offer them as Sporty cars, With the Solara receiving the option of having a manual Transmission since 2003. There is a huge market for sports cars these days. Mitsubishi needs to try to make a sub $20,000 car that is still sporty and reliable. The SRT-4 comes to mind, but recently Saturn has announced they will be introducing a FWD convertible 2 seater for less than $20k. Even the Scion tC has sparked the interest of Sports car fans. Mitsubishi could very well dominate the lower end sports car segment, however it would be a leap of faith since they would have to focus less on comparative sedans and SUVs. Overall, they have to be somewhat of Mazda Clone, except without the Mazda 6 and RX-8. Mitsubishi is in a very tight spot, but they can still make through the decade. All it takes is one breakthrough. Remember, Nissan made it happen, Mitsubishi can too.

 

Thanks for the prospectus Spyder. I was really wondering what was going on with this company from a do-or-die stock holding prespective.
(Because my Tax ret. is due back $$)[8D]

There is very little news and review about this co. available online. Your commentary however is a perfect start!

We can take what you say about Mitsu's "tight spot" and speculate from there.

I would surmise here that Mitsubishi cannot hope to (as no-one ever can) just sort of 'land' softly on the 'other-side' of these bad times without totally paying the piper (so-to-speak).

I am a Christian man and I would equate this to the fact that Jesus Christ could not just hope to land 'glorious' at the Resurrection without first bearing the Passion.

This is a basic fact of life.

How does it apply to Mitsu ?

Mitsubishi needs to quietly (almost anonomously) supply super-reliable machines to the working man for a number of years, (maybe 5 years).
Bulletproof, NO maintenance 200Kmi. engine/drivetrains.

This is how Honda became "Honda Nation",

and this is how Toyota's stock remains in the high 30's.

I have seen what Mitsu engineering can accomplish when they want to and it is awesome ! Yes! they have the technology.

Then, and only then, maybe 4 or 5 years from now with a history built on the most reliable machines on the planet, Mitsubishi can shoot for "Glory".

Dan

 

Buy more stock..

Become the new CEO and then control the company and make mitsubishi great again.

 

"Venture out into a premium brand"

Yea, I like that idea. Gee, I wonder what they would call it ?

But anyhow Mitsu cannot get there from here.

They need to perfect the quality first.

Toyota did before they created Lexus.

And everyone just assumed Acura to be perfect cars.

However if Mitsu. came out with a premium car brand today I can just imagine
everyone wondering things like, 'is that crank gonna drive me to town or walk?',
'is the alternator belt heavy enough to handle the torque-under-load pressure that
the alternator exhibits ?' 'Is the timing link made out of rubber?' 'Is the oil pump made out of aluminum?' etc..[]

 

Apparantly MMCA missed the boat back in the late 90's. Before the turn of the millenium, Mitsubish had a chance for a fresh start. They had just gotten out of bind with Chrysler(although Chrysler still owns about 40% of MMCA), MMCA had it's chance for a fresh beginning. Mitsubishi apparantly decided to focus more on it's Heavy Industries division while leaving MMCA to fend for itself. Although i wouldn't blame them for their decision. In the Late 90's, MMCA had a more prospective outlook than Mazda and even Nissan. Among the Japanese brand cars, Toyota and Honda still led the way, but below them Mitsubishi seemed to be at the top. MMCA tried to attract a younger demographic with it's introduction of the redesigned Eclipse in 2000, and the Lancer was slated for an early decade release. MMCA followed through with it's plan, but with a new redesigned Celica, Corolla, Civic, Integra, and the all new Focus, MMCA was stranded. That along with every single one of those cars boasting EPA mileage and Emissions, MMCA had nothing special to offer. In other price ranges, The Galant had to compete with the new Camry, Accord, Taurus(which were heavily discounted and seemed like a better deal), and newer Monte Carlo/Lumina. All of which were also redesigned and given special features. The Diamante was either in a class by itself, or at the very bottom of the list in it's intended price range. MMCA's gameplan doesn't make sense now, but back in the late 90's, things seemed much better than they were.

 

Rumor is they might release a truck again

 

Rumors are true:


http://www.mitsubishicars.com/06raider/