Mitsubishi Lancer to switch to Taiwan production

Mitsubishi's global boss Trevor Mann has confirmed the Lancer has been granted a stay of execution in the Australian market.

In April, Mitsubishi announced Japanese production of its long-running sedan would cease as the Mizushima plant, near Okayama, will instead manufacture the more popular ASX SUV.

With a Lancer successor still yet to be announced, there were fears this move would finally spell the end of the nameplate. However Mr Mann confirmed the contrary.

"Currently that vehicle's also made at a plant in Taiwan, or something like this, so basically we're going to continue to sell Lancers for as long as we can," he said.

Mitsubishi's apparent lack of direction in passenger cars stems from falling sales globally, coinciding with the boom in the SUV and light utility (ute) markets – both markets where Mitsubishi has a stronger presence.

Mann said Mitsubishi was closely considering its future options and will reveal all at a shareholder meeting in October 2017.

"On a global basis, no [we will not walk away from the passenger car market]," he explained.

"In both the US and China, the passenger car is still a very large part of their market. It's a similar story in Australia, only the US and China are 20-times the scale.

"There are still relatively large volumes, but it is a global trend, particularly the sedan, it seems to be dying. The hatchback has had a bit of a resurgence.

"It tends to be the Africas, Indias and Latin Americas that are still strong."