Mitsubishi logo is among the most recognized symbols in global markets. Since its inception in 1834, as a shipbuilding company, it has been transformed into a giant which contains more than 25 independent subsidiaries. The range of services includes automobile manufacturing, truck building, shipping, banking, electronics and logistics, among others. Still, Mitsubishi is mostly known for its automotive industry which has its root in the legendary Mitsubishi aircrafts of Second World War.

Earlier Models

As of 2010, it is the 7th largest automobile manufacturer in the World. Unlike most other companies, the first vehicle produced by Mitsubishi was a powerful seven seat, Model A. Although overpriced, it proved a major learning curve for engineers who used this experience to collaborate with Mitsubishi Aircraft Company in producing one of the most remarkable four wheel drive PX33 military vehicles, in history. Even today, PX33 is an awe inspiring masterpiece that creates a sensation, wherever displayed. During Second World War, Mitsubishi also proved a mainstay of Japanese resistance against Allied powers. Its famous A6M ‘Zero’ fighter stunned its opponents with speed and maneuverability.

After 1945, it took more than 15 years for Mitsubishi to fully recover from financial catastrophe of WWII. During these years, Mitsubishi prudently relied on building small scooters and three wheeled cargo vehicles which provided enough profits to keep its automotive division, afloat. As Japan regained from its post-war trauma, Mitsubishi once again produced another famous car, Mitsubishi 500, equipped with dual cylinder 493cc engine. Such was the growing demand of this vehicle that designers had to introduce another more powerful version which will become the darling of rally racing car enthusiasts. Just two years later, the management went on to offer Mitsubishi 360 vans and light trucks. These light vehicles became the basis of another popular automobile version, Minica. Minica wa so well liked that it even surpased expectations of its designers, who were initially unaware of the growing demands from the newly emerging middle class Japanese Public, who preferred small low cost vehicles.

Foriegn Markets

Perhaps, it was the initial success or expertise gained from making heavy vehicles that Mitsubishi realized a potential for foreign markets. A joint venture between Chrysler proved a catalyst to initiate more partnerships with other foreign automakers. In fact, Mitsubishi Gallant was re-badged as Colt and Chrysler Scorpion in US and Australian markets, respectively. All three brands were an instant hit among international buyers who demanded more than one million vehicles, in 1978.

Financial Dilemma

While Mitsubishi was rewarded with success in Asia, its sales in USA and Europe continued a sluggish pace. It will not be an overstatement to suggest that the management of Mitsubishi was reluctant to take risks like its counterparts, Honda and Toyota. It is because of this somewhat laidback attitude which would make Mitsubishi suffer heavily from Asian crisis of 1998. As its competitors recovered by boosting international sales, Mitsubishi’s passive stance to international expansion cost it dearly. Basically, it was the sales in heavy industries that kept automobile division from a complete shut down. Recent global recession has once again restricted Mitsubishi to take aggressive stance. For example, Mitsubishi recently introduced 0-0-0 offer in US which included 0% interest, 0% down payment and 0% monthly payments for 12 months. This marketing tactic was proving a success until many of Mitsubishi’s North American customers defaulted due to economic crisis, leaving its creditor MMCA to make $454 million dollar provision.

Path to Success

Nevertheless, the company was quick to change its stance on risky ventures, and a revitalization plan was introduced in 2006 to revive fledgling sales. Once again, the company has come out with attractive initiatives to introduce award winning Mitsubishi kei car and completely refurbished versions of Lancer. Moreover, it has also revised Outlander to compete in XUV market. Slow selling models have been removed from the markets and new business opportunities are aggressively pursued in Russia, Ukraine and Middle East. In fact, it is due to these bold undertakings that Mitsubishi announced its first profitable quarter, in 2006, after four years of losses. Since then, sales have picked up once again and it is hoped that Mitsubishi will not only be able to sustain this profitability but regain its fame that has already given it almost a legendary status in heavy duty truck industry, across Asia.