Mitsubishi Aims To Sell 7,000 New 'Colts' Monthly

TOKYO November 11,2002 ,Dow Jones reported that Mitsubishi Motors Corp. said Monday it aims to sell 7,000 units monthly of its new "Colt" compact over the model's life cycle of around five years in Japan.

The Japanese carmaker, ailing since the discovery of its decades-long coverup of product defects, is hoping its first car developed jointly with DaimlerChrysler AG will help it achieve a product-driven recovery. DaimlerChrysler has a 37.3% stake in Mitsubishi Motors.

The "Airtrek" and "eK-Wagon" passenger cars launched since the product-defect scandal broke in mid-2000 didn't manage to convince the market of the firm's bright future as a carmaker.

Presenting the Colt to the press and analysts Monday, Mitsubishi Motors President Rolf Eckrodt said: "The Colt is a new symbol for a new Mitsubishi Motors... This car is very, very important for Mitsubishi because it symbolizes a change in our company."

Mitsubishi saved about 20%-30% costs on the Colt compared with its existing compact models such as the "Dingo," by sharing the new model's platform and components with DaimlerChrysler's next-generation "Smart" compact. Mitsubishi spent that extra money on enhancing the quality of the Colt's materials, company officials said.

"For the Colt, we used materials that are of 10% to 20% higher quality than those normally used for a car in that price range, since we shared the platform with the Smart," said Olivier Boulay, chief designer of the company's passenger cars.

The Colt probably features higher-quality materials than those used in any rival product, including Honda Motor Co.'s "Fit" subcompact and Nissan Motor Co.'s "March" compact, the former Mercedes-Benz designer added.

To cope with what Eckrodt expects to be "a tough race" for the Colt, Mitsubishi will use additional marketing tools such as a semi-custom-made order system and a 24-hour call-center service for Colt owners.

In a bid to restore its tarnished corporate image, Mitsubishi has installed a huge metallic "Mitsubishi" badge on the steering wheel of the Colt and plans to put the same badge on all future models it introduces, Boulay said.

"It doesn't make sense to put a badge of this (tiny) size. Mitsubishi has one of the nicest badges, and I said 'Why not use it?' ... It's important to show we are confident," he said.

The Colt, which comes in 1.3-liter and 1.5-liter engine types and three- and four-door versions, will be launched in Japan Saturday.

It carries price tags from Y1.04 million to Y1.40 million, while actual prices for the product with average optional parts will range from about Y1.10 million to Y1.50 million.

A slight-variation model will be launched in Europe in 2004. Eckrodt said the firm is considering exporting the Japanese version of the Colt to other Asian markets and hinted at the possibility of selling it in the U.S.

Analysts at the product's unveiling generally said the new Mitsubishi compact gives good value, but they warned that there is little demand left in the small car segment after the recent rush of compact model launches by rivals.