In 1995 small cars were dying. The once popular market segment, heavily contested by Laser, Corolla, Barina and others was suffering badly at the hands of the discounting Koreans. But no-one makes money selling Echos and Excels at $11,990, and the light car boom soon went bust.
Consequently, small cars like the Corolla and Lancer swung back into favour, and since 1997 have been enjoying rejuvenated sales and unrivalled success. Ford's Laser couldn't match the march, a problem Ford will rectify with the new Focus.
Mitsubishi's Lancer is the grand dame of the small car market. The CE model was first launched in 1996, replaced by the CG Lancer we've driven here in July 2002. Most small cars have life cycles of 3-5 years, Mitsubishi's Lancer had to slog through seven highly competitive years - and the hatch has two more to go, because only the sedan is being updated at this time.
Why? Well, unless you live under a rock you'll know Mitsubishi has been in the news for the last 2-3 years for all the wrong reasons. Rumoured plant closures in Adelaide, dodgy financial diddling in Japan, numerous government bailout grants, the triple diamond was looking very rough indeed. So rough that the company halted all new model development until a viable business plan was put in place.
All that is (hopefully) behind Mitsubishi now, but the shock waves will continue for a year or two, most notably in the staggered launch of new models and upgrades.
But back to the Lancer, which Mitsubishi claims is all-new, bigger and more powerful, and will redefine the small car market. Seems we heard that same line from Volkswagen about the Polo, and from Mazda about the Mazda2, among others.
Truth is, the new Lancer sedan is bigger and more powerful than before. Physically the Lancer is 190mm longer overall, there's 100mm more between the axles and the body's 35mm taller and 5mm wider, which directly translates into more room inside, especially the rear seat.
Mitsubishi will offer three Lancer sedan models, the LS ($23,490), the Exceed ($28,990) and the sporty VR-X ($25,990). The LS and the VR-X are available with five-speed manual transmission, the Exceed standard with four-speed automatic, optional on the LS ($1850). The VR-X gets an optional four-speed auto with Sports Mode tiptronic gearchanges ($2250). (All prices are correct at time of publish, July 2002.)
Pricing is close to the outgoing model, but specifications on the new CG model are higher, making the new Lancer better value. All models are fitted with air-conditioning, dual airbags, remote central locking and electric windows and mirrors. The Exceed adds alloy wheels and chrome grille surround on the outside, and on the inside includes leather steering wheel, leather gearknob, woodprint dash fascia and 60:40 split folding rear seat. Anti-lock brakes are also standard on Exceed.
The Lancer VR-X, the sporting model in the new lineup, is a bit of a disappointment. Basically it's all show with no real extra go. A good looking body kit, tall rear spoiler and deep front spoiler, big 15inch alloy wheels and tyres, and a rear stabiliser bar are the big changes, though only the last two do anything for performance. But we'll get to that later.
Under the Lancer's new bonnet and behind the broad grille sits a new 2.0-litre, four cylinder engine in place of the old 1.8-litre four. It produces 92kiloWatts of power (up 6kW) and 173Nm of torque (up 12Nm), and is hooked up to either a four-speed automatic transmission, or a five-speed manual.
The engine's performance on paper puts it middle of the small-car pack, not as powerful as the 100kW Corolla, but more powerful than the Astra, and lineball with the 1.8-litre Pulsar. On the road it's a little gem, hiding plenty of enthusiasm and a strong mid-range behind a very flat engine/exhaust note.
The manual gearbox with it's extra gear ratio is the pick if you want to make the most of the Lancer's performance potential. It's relatively easy to use, and doesn't baulk or deceive. The clutch action is fine, though there's a noticeable surge in the fuel-injection system when you get back onto the throttle, making gearchanges jerky and hard to get smooth.
Mitsubishi claims the Lancer 2.0-litre's fuel economy is the best of all the 2.0-litre competition, rated at 7.8l/100km city cycle and 5.4l/100km highway cycle. If those figures can be achieved in the real world, then the Lancer's 2.0-litre engine is all the more impressive.
The Lancer's steering is disappointingly devoid of feeling or feedback, leaving the driver blind to road conditions and to how hard the front end's working. The Lancer responds well enough to inputs and displays an abundance of grip for a small sedan.
The VR-X steers better than the LS and Exceed models, hanging on longer through corners thanks to its bigger tyres. The added rear sway bar means the VR-X feels more lively and responsive on the steering, though it's still too wooden. There's no extra herbs in the engine, or a free-breathing exhaust for a few more ponies; it's the same robust, torquey 2.0-litre as in the LS, as in the Exceed, and as in the Pajero iO 4WD.
All Lancers have the same brake setup, 14 inch ventilated discs at the front and 8 inch drums on the rear, more than adequate for hauling in the 1160kg Lancer. Only the Exceed model gets ABS, on the others it's a $1000 option.
During the launch in July, 2002, we managed to slide behind the wheel of the manual VR-X and the manual and auto Exceed. Initial impressions are of a much roomier cabin that's definitely quieter than before. Controls and switches fall readily to hand, and the multi-adjustable drivers' seat allows for a comfortable driving position.
The steering wheel is not adjustable for reach, and there's no cruise control on any model, but they're really two minor exceptions in what is overall a well presented interior.
The Lancer's otherwise smooth ride is a bit thumpy over road joins, but the tyres hang on well and are very quiet, even on coarse chip bitumen. Engine response is strong, especially in the mid-range, but it ain't no sportscar, no matter how big the wing is on the VR-X's butt.
Overall, the CG Lancer is solid performing package from Mitsubishi, with the emphasis on value for money at the expense of a little personality.