Mitsubishi vows for more sales, increased R&D investment

Mitsubishi has a plan.

The Japanese manufacturer wants to increase its global sales by 25 per cent within the next two years, to 1.25 million units, increase R&D spend and make good in the segments it believes will continue to grow.

Speaking with Australian media this week, where he was visiting local operations, newly installed Mitsubishi chief Trevor Mann said there is much work to be done with the Mitsubishi brand.

"We will announce our mid-term plan in October this year, but the essence is that we want growth," Mann said.

"The essence will be to complete our recovery in the mid-term, which is by 2019. We aim to get back to an operating margin of 6 per cent, which is what we were in 2014 and 2015.

"What we also want to do is grow our volumes. In the last few years we've hovered around 1 million units globally. We're challenging for a 25 per cent increase to 1.25 million vehicles globally by the end of 2019."

Mann said he would further explain the "nuts and bolts" of the 2019 vision at the shareholder briefing in October. The global boss, who took on the top job late 2016, was coy on whether Mitsubishi would replace its ageing Lancer sedan and said the Pajero SUV replacement was "50:50" at this stage.

"We've got to focus on the SUV because that's where our strength and heritage is," Mann said. "Plus it's where the market's going, not only in Australia, but globally," Mann stated.

"We can't walk away from that segment, along with the Triton. We've got to make sure we punch our weight. The long debate is what we do with the passenger car segment; we've got a long heritage."

As for sedans? Mann said they're not dead yet – at least globally. But he said manufacturers, including Mitsubishi, are taking a more discerning approach as to which markets they play in.

"There's a number of things we need to decide on," Mann explained.

"We need to decide which vehicle in which segments and we also need to decide where those vehicles will be manufactured in order to ensure we have a competitive supply base with those vehicles and what platforms we have available to us as an alliance.

"From a commercial point of view, we couldn't just make a passenger car for Australia. But the passenger car is not just Australia.

"We need to find a good solution, and part of that solution is not only which car, but where it will be made."

Mann conceded Mitsubishi continues to "punch above its weight" in Australia, ranking as one of the top 10 marques despite an ageing line-up and no vehicles to compete in some of our market's key segments.

"Mitsubishi is a separate company, even though Nissan is our biggest shareholder," he said.

"As such, it's extremely important that Australia … remains a bedrock for Mitsubishi. That's where we're strong. Our brand and our focus will still be pretty much in Australia. We will try to do what's right for Australia to grow.

"What [Alliance chief] Mr Ghosn expects is that each brand pushes its weight."