BadAssLilR32

I have been reading the forum nonstop lately for Evo concerns and normal issues, which up to this point biggest being...clutch and 5th gear synchro or trannys in general. As if that wasnt a concern knowing the overal company who's not behind their product as it is....then today I find this article on autoweek and things are really looking grim, making me think the turn around of the company as a whole isn't coming anytime soon. The R32 and my dealership backed me 100% to date (n 10 other VWs) might need to remain my pick until i see some progress here on another 30k car

Turmoil reigns at Mitsubishi: Executive departures overshadow launch of redesigned Eclipse
KATHY JACKSON | Automotive News
Posted Date: 5/10/05
LOS ANGELES - The resignation of Kevin Mayer last week shocked many employees at Mitsubishi Motors North America Inc.

As advertising director, Mayer was responsible for the launch this month of the redesigned Eclipse coupe. Nervous employees were expecting the car to bring better times to the troubled automaker.

"No vehicle in our lineup has been as successful" as the Eclipse, CEO Rich Gilligan said at a recent press event.

But now it is turmoil, rather than teamwork, that prevails at company headquarters as the critical sporty coupe heads to the marketplace.

Not only is Mayer gone, but so is the director of strategic planning, John Jullens, and the director of brand marketing, Bob Martin. Jullens also left last week; Martin departed in March.

Dave Schembri, executive vice president of sales and marketing, has been on board only since February. Mitsubishi's ad agency, BBDO Worldwide of New York, was hired in March.

"This is the blind leading the blind," said one person in the marketing department. "This company is held together with spit and gum with no one to control the stage."

Shaky ground

The bad mood at the Cypress, Calif., headquarters is compounded by plunging sales. Mitsubishi sales fell 43.3 percent in April compared with the year-ago month and 40.2 percent for the first four months of the year.

A key problem continues to be the continuing exodus of executives.

Mayer, in his position only since January, was the No. 2 executive in the marketing department. His most recent predecessors, Diane Hong and Paul Mareski, each served less than six months in that position.

Ian Beavis, former vice president of marketing, left in November after only a year on the job.

At the top, Rich Gilligan was promoted to CEO from a manufacturing job after Finbarr O'Neill left in January for the top position at software supplier Reynolds and Reynolds Co.

Who's to blame?

Some sources blame Japanese executives from Mitsubishi. The sources say the executives are micromanaging operations in North America.

Some say Schembri butted heads with the marketing department over how the Eclipse should be marketed. They say market studies showed the car should be aimed at men ages 25 to 40. But Schembri argued for courting baby boomers, too, they say.

But the most difficult problem for the marketing executives, sources say, was the Eclipse's advertising budget: a paltry $25 million.

That's when Mayer walked.

"Kevin went through torture fighting for the budget," one source says. "A $25 million budget won't launch that car."

By comparison, other automakers often launch important new and redesigned vehicles with $100 million budgets.

One source says Mitsubishi's overall ad budget for this year is $120 million. "The real root cause is the Japanese," the source said. "Their whole game plan is to preserve cash."

An executive at one supplier to the company agrees: "I think they have a core of product to make it, but all I keep hearing is cut, cut, cut. I think they should beg, borrow and steal money from other areas to put into marketing."

Parent company Mitsubishi Motors Corp. posted an operating loss for the nine months ended Dec. 31 of $956.7 million.

Mitsubishi North America spokeswoman Dotty Diemer says the company would not comment on employee complaints.

More power, better looking

The 2006 Eclipse has a sleek new exterior and interior and a more powerful engine. The ad campaign kicks off June 12. During a March interview with Automotive News, Schembri said the new ads will feature the Mitsubishi brand as well as various nameplates. He said the ads will focus on product attributes.

Schembri would not discuss the ad budget except to say it was sufficient: "We don't lack financial resources. It's how efficiently you use them."

The company would use a combination of traditional media, such as TV, and nontraditional marketing to showcase Mitsubishi vehicles this year, Schembri said.

For example, in April the company completed two months of ride-and-drive events at several shopping malls throughout the United States. The goal was 25,000 test drives, and more than 30,000 people drove vehicles, he said. More such events will follow, he said.

The company also has reinstated the dealer advertising associations, which could add several million dollars to advertising coffers.

"We need to identify our target audience and expose our cars to that audience," Schembri said.

Some employees say that although Mitsubishi has good products, an inadequate ad budget will prevent sufficient exposure.

Gordon Wangers, CEO of Automotive Marketing Consultants Inc. in Marina Del Rey, Calif., says Mitsubishi will be hard-pressed to tell its product story without marketing muscle.

MTMS4

Not good.........

evo_dadi

iTrader: (13)

ice berg dead ahead!!!! lol i never did worry about my warranty

DaWorstPlaya

iTrader: (31)

Nothing to worry about .... advertising has always been subjective .... Look how much ad-time the EVO gets (hardly any) .... yet people still flock to buy it .... make a interesting product and magazines will rave about it. There's your advertising!

Tsurara

iTrader: (12)

First: Don't believe everything you read on the internet. 99% of Evolution owners are retards who put 400 to the wheels, launch the car at 13,000RPM and wonder why their stock clutch is fried. Again, do not believe the hype from this forum. Every car has problems, even look at the Acura RSX, they had ENORMOUS transmission issues.

Secondly: Mitsubishi is not going anywhere. Read up on Japanese economics, it's crazy and basically gets down to the simple fact that the Japanese have too much pride to tank Mitsubishi Motors.

EDIT: Also, don't forget that Nissan was in a similar/worse situation just a few years ago. They are fine now.

EDIT2: And while I am thinking of it, please don't let the company hold you back from the Evolution. Buy the car because you like the car. I went into buying mine fully aware of all issues/troubles with MMUSA. The fact is, the 4G63 has been around since forever, there are several GREAT shops that can make your transmission tighter than a schoolgirls *******, and there are always good body shops/general mechnics for everything else.


Relax.

BadAssLilR32

Edit 2 made me laugh

Tsurara

iTrader: (12)

Good. Now go buy your Evo.

ElectricBlueEvo

Mitsu not going anywhere, they'll be revived or rescued like Nissan. Now GM or Ford, they are in serious trouble. Their market share is falling, bonds are traded at junk levels, 2.5 pensioners for every employee. Remember that British Leyland was once the #3 carmaker in the world in the 70's, now they are gone. I'd be more worried about buying a new Mustang or GM SUV than buying a Mitsu.

EvoTech

iTrader: (25)

All I have to do is look around to see that Mitsu. is in trouble 3 of six dealerships in my area have closed their doors in the past year. This ship is sinking. It still would not stop me from buying an EVO, but I would buy a used one not expecting a warranty.

Kevine326

if your going to spend 30k ish on a sports car it should be on the evo period. Ignore the bs news and buy the car.
dont make the mistake my roomie just did and wast 30k on a rx8... keep your r32 if anything.

akEvo

iTrader: (3)

dont get me started w/ vw's dood... the mitsu article retains to marketing crap, not cars performance and issues mechanically... vw is the other way around, they spend a ***load of $ on marketing and little on service

racerhead2

yeah, end of the day if you feel that the Evo/ Mitsu thing is too shakey for you. Keep the R32

Mr.MR

Does anyone think the reason Japan wouldn't let the company go under is because Mitsubishi made the engines in the planes that attacked Pearl Harbor? I really don't think that anyone really knows what's gonna happen with them, so there's no reason to worry. Just sit tight, have a blast in your Evo's and see what unfolds.

NapervilleEVO

I hope people who own our car now that wth the base tourqe levels on in 4 cyl will beat up a clutch pretty fast. then add your mods and the fact you need to launch it when you want to race and you got a recipe for clucth disaster. it certainly is due to the owners mostly. and i second the jap mitsu point. they have been making motors and cars for decades. they suppllied tanks and trucks in WWI and II. the japenese take great pride in their company and our doing fine in japan. they will bounce back here too.

bigjhoney

iTrader: (12)

I can care less if mitsu went under, just means my evo will be worth tons of money.