2002 Mitsubishi Eclipse Gt Coupe 2-door 3.0l on 2040-cars

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Mitsubishi slashes annual profit forecast on slowing car sales

TOKYO — Mitsubishi Motors on Wednesday cut its full-year profit outlook by 67% as it expects sluggish demand in North America and China will continue, while a strong yen and research and development costs will also hurt the automaker's bottom line. Japan's sixth-largest automaker now expects operating profit to come in at 30.0 billion yen in the year to March, down from a previous forecast for 90.0 billion yen. The new outlook would be Mitsubishi's lowest profit since the year ended March 2017. The downgrade comes after Mitsubishi, in which Nissan holds a controlling stake, reported a 78% plunge in operating profit during the July-September quarter to 6.3 billion yen, lower than a mean forecast for 16.26 billion yen from analysts polled by Refinitiv. It joins a growing number of Japanese automakers which are bracing for lower profitability. Earlier on Wednesday, Subaru lowered its annual profit forecast due to a stronger yen and a cut in domestic output due to a major typhoon last month. Mazda and Suzuki have also cut their respective outlooks within the past month due to slowing demand for their cars. Earnings/Financials Mitsubishi

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Mitsubishi i-MiEV reportedly reaches the end of the road this year

It looks like the Mitsubishi i-MiEV is completely out of juice. News outlet Nikkei reports that Mitsubishi will completely end production of its tiny electric car this year. While the i-MiEV had been discontinued in the U.S. for a few years already, it was apparently still on sale elsewhere. That didn't mean it was doing well, as Nikkei notes that global sales were only a little over 30,000 units over its lifetime. It's not hard to see why the i-MiEV struggled. While its kei-car size and funky styling made it a unique city car, it was compromised in other ways. It only made 66 horsepower and had an official range of 62 miles. While the limited range was augmented somewhat by DC fast charging capability, but it didn't take long for competitors to launch larger, more powerful, longer-range cars for not a whole lot more money. And the gulf between the i-MiEV only expanded over the years. According to Nikkei, the reason the i-MiEV went so long unchanged was a lack of funding and resources. But now that Mitsubishi is part of the Renault-Nissan Alliance, the news outlet reports that there will be a successor to the bubbly EV co-developed with Nissan to be launched in 2023. Whether this next small electric Mitsubishi appears in the U.S. seems like a toss-up. We wouldn't have expected the kei-car based i-MiEV to have been brought here originally, simply because of the cost of making such a tiny car pass safety regulations, let alone appeal to American buyers that like size. Those issues haven't changed, and if anything, American buyers are even more keen on trucks and SUVs than before. But maybe if fuel economy and emissions regulations get stiff enough, Mitsubishi might see a benefit to offering a full EV here, even if it's an odd size. Related Video: