Amsterdam, January 18th, 2005
2004 MITSUBISHI MOTORS EUROPE SALES RESULTS
+ 8.6 % increase – Second consecutive year of growth
226,000 units in 2004 vs. 208.000 units in 2003 The UK now # 1 - Russia confirmed # 3 - Turnaround in Germany – Good performance of The Netherlands, Belgium, Norway, Ukraine, the Baltic states, Romania and Turkey – New Lancer now MME´s best seller – New Colt passed the 20,000 unit mark - Successful start for Grandis – L200 remains MME´s second best seller.
Major announcements, a new organization and the implementation of MMC´s Revitalization Plan: 2004 has proved a very intense period for Mitsubishi Motors Corporation (MMC).
In Europe, last year has proved just as eventful for Mitsubishi Motors Europe B.V. (MME), with a long transition period ended on September 1st when Tim Tozer was appointed President & CEO, an all-new senior management team, a new approach to the business, a new organization, turbulence in Germany, new Distributors in Switzerland, the Czech Republic, Slovakia and Hungary and of course, the launch of Grandis, Lancer Evolution VIII and the much awaited New Colt.
In this context, Mitsubishi Motors sales reached a total of 225,826 units in Europe, i.e.: an increase of 8.6% over 2003 (207,939 units), and the second successive year of growth*.
Product offensive – Part II With the launch of Outlander during the Spring of 2003, MME started a full product offensive. In more concrete terms, 10 new cars will be launched in Europe between FY2004 and FY2007**. This string of new models, tailored to the needs & tastes of European customers and graced with a very attractive design has been a key factor for Mitsubishi Motors to gather momentum on the market in 2004 as well.
*2002 / 2003 : 203,028 units / 207,939 units = + 2.4% ** April 1st 2004 and March 31st, 2008 In 2004, product highlights were:
- New Lancer: a year after being unveiled at the Moscow Motor Show (August 2003), it has become Mitsubishi Motors´ best-seller in Europe (37,333 units), fueled by its success in the Russian market. Its format (3-box C-segment petrol-engined sedan) proved right with the Russian customers, allowing it to rank first among imported cars in this country.
- L200: MME´s second best seller (36,971 units) again in 2004 and a high profit contributor, has remained a key player in a growing European pickup market with an ever-intensifying competition, thanks to its design, overall packaging and reputation. The United Kingdom remains L200´s top market where it also remained Mitsubishi Motors´ top selling model - with 12,179 sales - dominating the pickup sector with 36% of the total market at year-end.
- Grandis: launched in April 2004 in Northern Europe only, it has renewed the idea of MPV with its sleek design, fine dynamics and clever “Hide&Seat” seating flexibility concept. To the point where in Norway for instance, it has doubled the size of the MPV segment on its own. From the 5,325 units sold in 2004, volume should grow in 2005 with the addition of a Volkswagen AG-sourced Diesel engine and the introduction in the rest of Europe.
- New Colt: New Colt was certainly a most important car for MME. Launched in successive waves from May to September, it marked Mitsubishi Motors first-ever entry in the European B- segment, with a challenging 85% conquest rate. Whereas such result cannot be achieved overnight, the first indications were nevertheless encouraging:
o Italy for instance, enjoyed a 74% conquest rate. There, 34% of these early buyers were younger than 40, another tendency approaching the original Colt target customer.
o In Germany - where Mitsubishi customers are traditionally older - Colt managed to start lowering the average age, as proved through the following comparison within the 40-49 age bracket: conquest customers: 39%, loyal customers: 23%, Colt Mk V (= previous model) customers: 24%.
In total, 20,452 New Colts have been sold between May and December 2004, the best-seller model being logically the first engine to be launched (the 1.3 / 51,9%) followed by the 1.1 (21.8%).
Higher figures could have been reached, if it was not for the following critical factors: o Drop of confidence for the Brand in the German market (Colt´s largest), in the wake of DaimlerChrysler´s announcement of April 23rd.
o Three month delay of both the 1.5 Diesel and the petrol 3-cylinder 1.1, essential in Southern Europe. 2005 should confirm these results. A tactical marketing approach focused on Colt´s rational product benefits, a clarified line-up, as well as the introduction of further variants like an additional Diesel engine (68 ps) will support the now full availability of the car.
Along those lines, the 3 door Colt CZ3 & Colt CZT, to be launched during the first quarter of 2005, will play a major role, as they should represent 40% of the total Colt volume.
- Pajero*: The Pajero* family remained faithful to a formula that has made its success for the last 20 years, blending technology, authenticity, high appointments and – unique in the SUV world – impeccable racing credentials, as demonstrated again at the 2005 Dakar Rally, with Mitsubishi Motors´s 10th victory. This led to a respectable figure of 26,678 units for 2004, i.e.: only - 5.2%, in an SUV market crowded by soft-roaders.
In parallel, it should be noted that the rugged Pajero* Sport continued to enjoy the same fame with 14,073 units, i.e.: a + 21.3% increase.
- Outlander: With 16,296 units, Mitsubishi Motors´ crossover remained stable and in line with its objectives. The first quarter of 2005 will see the launch of the 202ps Turbo version: an image- builder that should act as a booster for the rest of the Outlander range.
The UK – Germany – Russia
For Mitsubishi Motors Europe, 2004 saw a significant change in its Top Three, as The UK became #1, Germany moved down to the # 2 spot, whereas Russia took over from Spain as # 3:
- The UK: Mitsubishi Motors UK has posted an all-time new vehicle sales record of 35,610 for 2004, up 13.1% on the previous year. Achieving its fourth consecutive year of growth, Mitsubishi Motors UK has doubled its sales from the 18,089 units of 2000.
This sales success has seen the UK operation become Mitsubishi’s number one distributor in Europe for the first time in its history. Achieving more sales than Germany (35,597 units) and the rapidly expanding Russian market (30,037 units), Mitsubishi’s UK performance has made a significant contribution to the brand’s overall positive European performance.
* Montero in Spain / Shogun in the UK New model introductions during 2004 have played a major part in helping to increase sales. Launched in January, Outlander achieved 1,458 sales. Grandis, on sale since July, has already taken 16% of the petrol large MPV market with 689 sales. Mitsubishi’s newest member of the range, the 5-door Colt, has got off to a good start since its introduction in September, posting sales of 2,036 units.
Along with new additions to the range, established models have also delivered exceptional results with Pajero* Sport achieving a 126% increase with 4,141 sales and Pajero* up 19% with 5,930 sales. Within the extremely competitive large SUV segment, Pajero’s* combination of exceptional pricing and proven abilities both on and off road has seen its segment share increase to 10%.
- Germany: In DaimlerChrysler´s home market, Mitsubishi Motors was – logically - directly hit by DC´s announcement of April 23rd that it would not consider further financial support to Mitsubishi Motors Corporation, generating a sudden drop of confidence with the Brand from both German customers and dealers.
Following a national dealer convention on September 20th, an extensive sales & marketing campaign was implemented throughout the country (“3+2” extended warranty, financing deals, used car trade-in incentive) which led to a clear revitalization of the business. Witness, the results in November (+ 43.2% and best month since December 2000) and December (4,513 units, i.e. a further increase of 8.8% over the previous month and the best month since July 2000).
The final outcome of this turbulent year in Germany was a total of 35,597 units or only 13 units behind the UK and a cumulated decrease of only 8.5%, much less than observed earlier during the year (October: - 16.1% for instance). Last but not least, Mitsubishi Motors Deutschland saw a sharp increase in its New Colt sales during the last months of the year, selling 1,000 units a month, instead of 500 previously.
- Russia: Thirteen years after entering the Russian market (August 1991), Mitsubishi Motors Europe reached a double milestone in 2004 passing the 30,000 unit mark (30,037 vs. 17,695 in 2003. i.e.: + 69.7%) and trailing The United Kingdom and Germany as # 3 in MME´s Top Ten. As a further symbol of that growth, Mitsubishi Motors also sold its 75,000th car in Russia in December of 2004.
This result demonstrated MME´s firm commitment to the Russian market, but also acknowledged the remarkable work done by its local partner - the Mitsubishi Motors division of Moscow-based Rolf Holding - over the last years.
* Montero in Spain / Shogun in the UK In this vast, growing and maturing market (economic growth, increase in disposable income, credit- based purchased coming on stream, etc,…), Rolf Holding made Mitsubishi Motors the 2nd Japanese brand in 2004 again, as well as turning New Lancer into the best import model in this country (17,502 units or 58 % of Mitsubishi Motors volume, followed by Outlander with 3,246 units).
Mitsubishi Motors’ growth was provided through Rolf Holding’s long term strategy and professional sales / marketing / distribution organization, itself backed by a skilled network of 58 dealers in 43 cities (with strong bases in Moscow and St Petersburg), making it one of the largest retail sales networks in Russia. This network is also supported by a full integration of the distribution chain, including transport and logistics of cars and parts throughout this immense country.
Additionally, 2004 saw the implementation of a national credit program designed in cooperation with Gasprombank which contributed significantly to Mitsubishi Motors´ results.
Extended on August 2003 to Asian Russia, MME now covers - through Rolf Holding - a vast territory from the Baltic Sea to the Pacific Ocean.
From The Netherlands to Ukraine Other highlights for Mitsubishi Motors Europe in 2004 include:
- The Netherlands: Mitsubishi Motors Sales Netherlands is well on the way with its Turnaround Plan with a significant 8% increase (8,395 units) compared to 2003. Adding to Outlander, Grandis has taken off well and the profit generated by the network has provided a solid base for further growth in 2005. In its home country*, New Colt has also proved a success with 1,800 orders.
- Belgium: A year after the start of its operations (October 2003), Mitsubishi Motors Belgium is now an active player in Belgium and Luxemburg. Adding its own (tactical) marketing initiatives to MME´s product offensive, MMB has reached 4,676 units or + 11.1 %, outperforming the overall Belgian market, in spite of (still) several open dealer points.
- Eastern Europe: Mitsubishi Motors moved forward with its long-term development strategy in the region. Affected – like all manufacturers – by the consequences of the EU extension in Poland and the flow of used cars that affected the local new car market, MME put in place the right tools in Czech Republic, Slovakia and Hungary through new distributors. In parallel, the Baltic states (Latvia / + 108.9% and Lithuania / + 75.3% in particular) proved their potential, while Romania posted a remarkable + 505.6% moving from 124 up to 751 units.
* New Colt is built for Europe at MMC´s NedCar plant located in Born, in the South of The Netherlands. Highlight of Eastern Europe for MME remained Ukraine, reaching the annual Top Ten with 5.820 units (+ 68.5%).
- Southern Europe: in this region, Turkey doubled its volume (5,534 units / + 108.4%) in spite of changes in the local tax regulations (increase of “Special Consumption Tax”*) and Portugal remained in the Top Ten (6,346 units / + 4.8%). However, compared with these results, the bigger markets of France, Italy and Spain presented a contrasted situation last year.
Sharing some strategic factors, these countries still represent a challenge for the “new” Mitsubishi Motors Europe: strong SUV image, important B-segment markets dominated (in volume and marketing spendings) by European players, network optimization underway, availability of dealerships in major urban centers, etc,…
Signs of recovery started showing though and the Colt sales figures in Italy were an early indication of things to come, with a monthly volume of 400 units vs. 150 earlier in the year.
Commenting on these results, Tim Tozer – President & CEO of Mitsubishi Motors Europe B.V. said: “All of us within the Mitsubishi family are delighted that our sales grew by nearly 9% to 226,000 units in 2004. We have seen substantial growth in many markets, consolidated our performance in others and narrowed the list of those where we have to improve.”
He added: “ Mitsubishi Motors´ exclusive product range - renowned for its quality, durability and style - will be strengthened by the launch of the Colt CZ3, Colt CZT and Grandis Diesel in 2005. These products, alongside the efforts of our sales network of 36 importers & distributors and 2,950 dealers in Europe will undoubtedly ensure further growth this year.”
Tim Tozer concluded: “ We have publicly stated that we believe our natural weight in Europe is of the order of 250,000 vehicles per year. This will also be our objective for CY2005.”
* Average of + 20%
Contact: Daniel Nacass / General Manager – Public Relations, Mitsubishi Motors Europe B.V. + 31 6 10 92 38 42 or [email protected]
Alex Thomas / Manager – Public Relations, Mitsubishi Motors Europe B.V. + 31 6 51 31 37 11 or [email protected] MITSUBISHI MOTORS EUROPE - 2004 Sales Results* -
2004 2003 Variation MARKETS 1 – United Kingdom 35,610 31,477 + 13.1%
2 – Germany 35,597 38,919 - 8.5%
3 – Russia 30,037 17,695 + 69.7%
4 – Spain 18,017 19,065 - 5.5%
5 – Italy 15,165 17,042 - 11%
6 – France 10,918 11,002 - 0.8%
* Some minor discrepancies might appear between MME figures (sales) and officially published figures on various markets (registrations). Beyond the possible difference between sales and registrations, it also comes from grey imports, pickup trucks and other light commercial vehicles converted from passenger cars, sales from existing stock in countries, etc,…
TOTAL EUROPE
Overall market (ACEA)* 15,337,418 15,073,418 + 1.8% Mitsubishi Motors (ACEA)** 118,571 116,495 + 1.8% Mitsubishi Motors (MME)*** 225,826 207,939 + 8.6%
MONTH of DECEMBER 2004:
ACEA figures**: 9,858 8,602 + 14.6% MME figures***: 20,657 18,739 + 10.2%
* ACEA figures / 15 EU countries + 3 EFTA countries + 8 New EU members / do not include pickups like L200. ** ACEA figures / 15 EU countries + 3 EFTA countries / do not include pickups like L200. *** MME figures / 36 countries / includes L200
MME TOP 10 COUNTRIES*
1 – United Kingdom: 35,610 units 2 – Germany: 35,597 units 3 – Russia: 30,037 units 4 – Spain: 18,017 units 5 – Italy: 15,165 units 6 – France: 10,918 units 7 – The Netherlands: 8,395 units 8 – Portugal: 6,346 units 9 – Ukraine: 5,820 units 10 – Sweden : 5,776 units
* MME figures / includes L200
MODELS 2004 2003 Var. 1 – New Lancer 37,333 launched August 2003 -
2 – L200 36,971 41,079 - 10%
3 – Space Star: 34,051 42,828 - 20.5%
4 – Pajero 26,678 28,127 - 5.2%
5 – New Colt 20,452 launched from May 2003 onwards*
6 – Outlander 16,296 launched April 2003 --
*Sequential launch. Last wave in September with UK, Scandinavia and Central & Eastern Europe. Diesel and 1.1 available since September all across Europe.