Mitsubishi: Desperately Seeking Dealers?
Monday, March 1st, 2010Automotive News is reporting this morning that while dealers representing other brands are entering into arbitration to begin working again, Mitsubishi Motors North America is hoping to recruit 25 new dealers this year. The company currently has a roster of 424 dealers, down from 575 in 2005.
Mitsubishi’s director of franchise development, Joe Delello, explained to reporters, “We’re looking to add dealers in targeted markets.” Such markets include primarily major metropolitan areas, such as Baltimore, Los Angeles, New York City, and Washingong, D.C. Delello added, “These are open points where we believe there will be sufficient units in operation for service business. These are not buy-sells.”
As with most automakers, Mitsubishi has seen diminishing returns over the past few years, with sales falling from 261,254 in 1999 to 53,986 last year. The company has spent the last three years regrouping, devising new-product strategies like focusing on smaller, more fuel-efficient vehicles.
Recently, at the National Automobile Dealers Association convention in Orlando, FL, Mitsubishi representatives networked with potential dealers, and also displayed the new, small, i-Miev electric car, which will be coming to the United States along with a gasoline-powered twin.
Chicago-area Mitsubishi dealer, and chairman of the company’s National Dealer Advisory Board, Scott Grove told Automotive News reporters that he believes the brand needs to put more stores in markets where dealerships have recently closed. He also said that the factory is exercising caution when it comes to recruiting new dealers, however.
“We are not in boom growth,” said Grove. “We will make better decisions on where we approve points.”
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