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Mitsubishi scores record global operating profits

In the minds of many auto enthusiasts, Mitsubishi has become an afterthought. It has transformed from a company known for its turbocharged, all-wheel-drive rally machines into an automaker with a very boring lineup. Maybe we are being unfair, though. While the company doesn't have much of a performance presence anymore, the Japanese brand is doing quite well financially.
According to Reuters, Mitsubishi Motors had an operating profit of 123.4 billion yen ($1.2 billion) worldwide for the fiscal year that ended in March. That's twice as much as last year and a new all-time record for the Japanese automaker. It's even paying dividends to investors for the first time in 16 years, and its expected profit of 135 billion yen ($1.3 billion) in the new fiscal year matches a goal it had set for itself to achieve two years from now.
The automaker currently focuses much of its efforts on Southeast Asia, which accounts for about a quarter of its sales. It will put even greater attention there in the coming years with more local production, according to Reuters.

Mitsubishi Outlander PHEV US launch delayed over battery shortage

Mitsubishi resumed full-scale battery production in August after a five-month shutdown due to a safety investigation. Supplier Lithium Energy Japan has been delivering 4,000 battery packs each month since September, but that's apparently still not enough to fill the overseas inventory pipeline for the Outlander PHEV and i subcompact EV while launching the Outlander PHEV here in the US. So instead of the previous tentative launch date of Fall 2014, the plug-in hybrid's Stateside on-sale date has been pushed back until 2015.
That's according to Automotive News, which also notes that Mitsubishi has sold 11,300 plug-in Outlanders this year, though that number reflects the production stoppage over the battery issues. As of April, battery supplier LEJ will be able to supply 5,000 packs per month just for the Outlander, but company president Osamu Masuko has gone on record saying that production will have to rise above that in order to make the US launch.
Every Mitsubishi dealer (and hopefully a fair number of consumers) will be looking forward to a crossover that, for the moment, doesn't really have natural rivals. The Outlander PHEV can drive 32 miles on electricity alone, has a top speed of 75 miles per hour in EV mode and offers all-wheel drive with a towing capacity of over 3,000 pounds. The model should get an impressive MPGe rating from the EPA when it finally arrives and it figures to be a bellwether for the plug-in Outlander Sport and Pajero utility vehicles that are expected to arrive after it. Hopefully 2015 will be its year.

Renault to propose joint holding company with Nissan, Nikkei reports

TOKYO — Renault SA will propose to Nissan Motor Co a plan to create a joint holding company that would give both firms equal footing as the French automaker seeks further integration with its Japanese partner, the Nikkei newspaper reported on Friday. Under the proposal, both firms would nominate a nearly equal number of directors to the new company in which ordinary shares in both Nissan and Renault would be transferred on a balanced basis, the newspaper said, without citing sources. This would effectively dilute the stake held by the French government in Renault to around 7-8 percent, from its current 15 percent, it added. The new company would be headquartered in a third country, such as Singapore. Renault plans to make the proposal to Nissan soon, the Nikkei said, having modified an earlier merger idea that Nissan rejected on April 12. Nissan declined to comment on the issue. The Financial Times newspaper reported that both Nissan and the Japanese government have refused to engage in merger talks with Renault. The report of the proposal comes as the outlook for the alliance — one of the world's top automaking partnerships — has clouded since the arrest in November of its main architect, Carlos Ghosn, for suspected financial misconduct. It also comes as Nissan's financial performance struggles following years of focusing on volume sales over building its brand, particularly in the United States, its biggest market. Nissan slashes its forecast This week, the Japanese automaker slashed its profit forecast for the year just ended to its lowest in nearly a decade, citing weakness in its U.S. operations. Renault for years has been vying for a closer merger with Nissan, which it rescued from the brink of bankruptcy two decades ago. Ghosn had been working to achieve a deeper integration before his arrest on financial misconduct charges in November last year. While the automakers have been consolidating many of their operations over the past decade, including procurement and production, many executives at Nissan have opposed an all-out merger with Renault. Instead, Nissan has argued for a more equal footing with Renault, which holds a 43 percent stake in its bigger partner. Nissan holds a 15 percent stake in Renault. It was unclear whether Renault would hold the casting vote in major decisions at the new company, as it did in Renault-Nissan B.V., a strategic management company jointly held by both companies that oversaw operations for the partnership.