Sales challenges
Mitsubishi Motors Corporation's financial and legal issues weighed hard on MMAL, with public perception of the viability of the company reaching an all-time low in 2004. Company research conducted in mid-2004 revealed that roughly four out of every five believed that Mitsubishi would cease production in Australia.[7]
The withdrawal of DaimlerChrysler from its involvement with Mitsubishi Motors Corporation in 2004, along with the revitalisation plan that called for the closure of the Lonsdale engine plant, did not help the public's perception of MMAL as a viable company.
MMAL ended 2004 with a stockpile of approximately 4,000 unsold Magnas and Veradas.[8] To restore consumer confidence in the brand and to clear the model backlog, a series of television advertisements began airing in December 2004.[7] Centred on Mitsubishi Australia's then Chief executive officer, Tom Phillips, the advertisements promoted the introduction of an industry-first five-year/130,000 kilometre warranty. Mitsubishi reworked a slogan from former Chrysler chairman Lee Iacocca, concluding their commercials with the tagline, "If you can find a better-built, better-backed car anywhere, then buy it".[9] The campaign successfully boosted sales and allowed the backlog to be cleared.
The Mitsubishi 380, the successor vehicle to the Magna, raised hopes for the future of MMAL when launched. Hopes stemmed from the sales success that the Magna experienced when it was launched and the fact that the Australian automobile market was growing at the time. However, the 380 sold poorly from its introduction and failed to meet expected sales targets. This resulted in a reduction in daily production volume from 180 to 50 vehicles per day, along with further reductions in the workforce.
Sales of other Mitsubishi Motors Corporation vehicles began to show improvement in Asian and European markets as new vehicles were introduced during 2006. These vehicles were also introduced into the Australian market, boosting MMAL's Australian sales into the segments that these vehicles occupied, though this did nothing to help their sales of locally manufactured product.
