When was the last time you thought about buying a Mitsubishi?
Probably not lately. Mitsubishi used to be a prime Japanese car giant, as models like the Lancer Evolution, Eclipse, Galant, and 3000GT were among the best autos to come out of Japan — but that was more than 20 years ago.
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And unless you are really in the know about new cars, Mitsubishi (MMTOF) and its aging lineup are even tougher to sell to consumers than other Japanese big-names like Honda, Toyota, and even Nissan.
Unfortunately, this means that Mitsubishi dealers are struggling to sell new cars, a crisis that its dealers are sounding the alarm to its leadership about.
Mitsubishi dealers aren’t selling enough Mitsubishis
According to a new report from Automotive News, the average Mitsubishi dealer sells just 17 new cars a month—far from the estimated 30 they need to sell in order to stay profitable. To make matters worse, some dealers have even shifted their business model, operating as glorified used car dealers to survive.
In a letter addressed to Mitsubishi Motors North America CEO Mark Chaffin and its global CEO Takao Kato, frustrated dealers warned that they’ll continue down the rabbit hole without immediate and adequate action.
Some dealers have already fallen victim. In one Midwest region, a dealer told AutoNews that four out of 15 Mitsubishi dealers in its area closed within a year. Another dealer who said they’re losing $80,000 a month warned that “if something doesn’t change fast, we’ll have to make some major decisions.”
Old Cars and the Inventory Pile-Up
A way to gauge customer interest is to see how long cars sit on dealer lots. Unfortunately, Mitsubishis spend a lot of time sitting.
Edmunds data shows that new Mitsubishis sit on lots for an average of 97 days—about 30% longer than other brands. As of February 2025, 80% of “new Mitsubishis” on dealer lots are actually "leftover" 2024 models.
Keeping these cars on the lot is expensive, and the pressure to discount after the transaction adds more pain.
Mitsubishi
Mitsubishi’s inventory crisis can be rooted in its inability to update its cars, as its current lineup shows its age.
Mitsu's larger models, the Eclipse Cross and Outlander, received visual updates in 2021, but the current version of the compact Outlander Sport last received a major update in 2011. At $23,695, it competes in a tough segment against Honda’s HR-V, Chevrolet’s Trax, and Hyundai's Kona.
Dealers say they can’t convince buyers away from their competitor brands because they have newer, nicer cars on sale. According to Edmunds, a third of Mitsubishi’s potential customers also consider Toyotas, Kias, or Hyundais, yet fewer than 5% of their shoppers actually buy Mitsubishi.
“We are in a gunfight with butter knives,” one dealer told AutoNews. “We are competing against brands like Mazda, Hyundai and Kia, which have all these [nicer] products.”
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The crisis is hurting Mitsubishi’s books
The low performance is hitting Mitsubishi’s books. According to the automaker, average dealership net profits have been half their pre-COVID levels, falling to $434,199 per dealer in 2024. In addition, their profit margins also dipped from 2.2% in 2023 to 0.92% last year.
Mitsubishi’s North America CEO, Mark Chaffin, did not share specific numbers but told AutoNews that improving dealer profitability is his top priority in 2025.
“Mitsubishi dealers definitely have some challenges, but we’re ready to continue to do everything we can to support them,” Chaffin said.
Mitsubishi made some adjustments to help dealers. In Q4 2024, it tweaked dealer margins, added trade-in rebates, and increased volume bonus payments. As a result, Mitsu saw an 86% spike in dealerships selling 30 or more units and a 30% increase in those selling at least 20.
Chaffin also insisted the company is “listening” and hinted at more dealer incentives.
"There’s work still to be done," Chaffin said. "We are taking input from the dealer advisory board and determining which of those levers we can pull to help the dealers in the new year."
However, Mitsubishi’s lower-credit customer base presents another hurdle for dealers. Attractive incentives lead to dealers relying on subprime financing, and rising bank fees make such accommodations even tougher.
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Some Mitsubishi dealers are [barely] surviving on fleet and used car sales
With new car sales in the gutter, Mitsubishi dealers try to survive by selling used vehicles and convincing people into shiny, new Mitsubishis.
One dealer noted, "Nobody comes in looking for an Outlander Sport, Eclipse Cross, or Mirage. The only way we sell those cars is to switch used-car shoppers with attractive payments."
Mitsubishi’s reliance on fleet sales (which accounted for 40% of its 2024 U.S. sales) isn’t helping either. Production issues have caused a backlog of compact Mirage cars meant for fleets in 2023 to spill into 2024.
With thousands of nearly new Mitsubishis about to flood the used market at bargain prices, selling new ones may get even harder.
Mitsubishi Motors is traded on OTC markets in the United States as MMTOF and on the Tokyo Stock Exchange under the ticker 7211
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