Some are shifting their focus to the used car market instead
Mitsubishi is struggling, and its dealers are feeling the impact. The situation has become so dire that some are ready to walk away from the brand. A memo from dealers to Mitsubishi’s North American CEO last week urged “swift action” to keep the “dealer body engaged in selling new vehicles.”
According to Automotive News, which obtained the memo, many dealers are prioritizing used car sales over new ones. Mark Chaffin, Mitsubishi’s North American CEO, stated that the company is committed to supporting its dealers, with improving dealer profitability as his top priority.
In late 2024, Mitsubishi attempted to help by introducing trade-in assistance rebates, lowering sales targets, and increasing bonus payments. Chaffin noted that these measures led to more vehicle sales, but more support is urgently needed.
Dealers paint a bleak picture of their financial struggles. One dealer told Automotive News he’s losing $80,000 per month at a single store and hasn’t turned a profit in 18 months.
Another, who sold his stores last year, was losing $300–$400 on every new car sold. In one Midwest region, four out of 15 Mitsubishi dealerships closed within a year.
Another dealer reported losing $1 million across their stores last year, citing high prices and an aging lineup as key reasons for declining profits—despite Mitsubishi’s U.S. sales increasing 38 percent year-over-year to nearly 110,000 vehicles.
The Outlander and Outlander PHEV accounted for nearly half of those sales, with 49,182 units sold, while the Outlander Sport followed with 15,015 units.
The Outlander PHEV is Mitsubishi’s newest model in the U.S., but the rest of its lineup is aging. With the Outlander already a few years old, dealers may need fresh products to attract buyers again.
The call for action comes just weeks after Mitsubishi slashed its net profit forecast by 76 percent due to rising costs, high marketing expenses, and weak sales. The company also lowered its global sales target to 848,000 units—still higher than the previous year’s total.
However, strong sales alone won’t solve Mitsubishi’s financial struggles, nor those of Nissan and other automakers facing similar challenges. The coming months will reveal how this unfolds.
