After 25 years in the American auto market, Suzuki and Mitsubishi may have to withdraw due to plunging sales numbers, reports Bloomberg. Mitsubishi saw a 51 percent drop this year, and has been in an American sales slump since 2003, and Suzuki saw a 60 percent decline in sales over the first two quarters of this year, the worst drop this market has seen.
Japanese business analysts recommend that the two manufacturers withdraw completely from the American market and “stop the bleeding.” as one analyst put it.
The current economic conditions have already forced two of the American automakers into bankruptcy, caused a record loss for Toyota Motor Corp., and forced Isuzu motors out of the market entirely. American analysts who track the auto industry place Suzuki and Mitsubishi towards the very bottom of the market, and say that there is no viable quick fix that will effectuate their continued participation in the American market.
“We’re not talking about a one-time investment, but a consistent, sustained effort,” said Edwards, head of auto research for San Diego-based Strategic Vision Inc. “If they’re looking for a quick fix, continuing in the market will be tough.” said Alexander Edwards, head of Strategic Vision Inc. out of San Diego.
Mitsubishi Motors President Osamu Masuko has indicated that he plans on staying the course and expects the United States to regain its posture as the world’s largest auto-market.
“We will never give up the U.S. market,” Mitsubishi Motors President Osamu Masuko said on July 9 in Tokyo. “The U.S. will return to being the world”s biggest market.”
– By: Stephen Calogera