Automotive No-Brainers, Vol. 2: PSA and Mitsubishi Get Married

"AMC/Renauledge" (n2skylark)
11/25/2013 at 16:39 • Filed to: Automotive No-Brainers, Mitsubishi, Peugeot, Citroen, RCZ, Eclipse

Today is installment #2 in my " Automotive No-Brainers" series, dedicated to the idea that Mitsubishi Motors and PSA ought to be doing the horizontal hokey pokey. !!!error: Indecipherable SUB-paragraph formatting!!! turned into a good discussion and made it to the !!!error: Indecipherable SUB-paragraph formatting!!! list last week. So let's continue the magic...

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After a decade of languishing, Mitsubishi Motors' financial situation !!!error: Indecipherable SUB-paragraph formatting!!! in North America, the second-biggest auto market in the world. Their !!!error: Indecipherable SUB-paragraph formatting!!! is running at !!!error: Indecipherable SUB-paragraph formatting!!! , as well. And they just announced plans to replace their unloved Galant with a !!!error: Indecipherable SUB-paragraph formatting!!! in the near future. So Mitsubishi will be bringing a Renault-Nissan product to market that will compete with Renault-Nissan's bread-and-butter Altima. And the rest of us are left scratching our heads.

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Meanwhile, PSA's financial situation is getting direr by the day. GM has pulled back on their cooperation with the beleaguered company, the Peugeot family is in danger of losing control after more than 200 years (!) of ownership, their Chinese partner !!!error: Indecipherable SUB-paragraph formatting!!! , and former Renault-Nissan exec, Carlos " !!!error: Indecipherable SUB-paragraph formatting!!! " Tavares, is set to !!!error: Indecipherable SUB-paragraph formatting!!! .

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So why should the two troubled companies bump uglies? Actually, they already do.

A few years ago, Mitsubishi and PSA got together on the 2nd-generation Outlander, as the French company fielded retrimmed versions called the Citroen C-Crosser and Peugeot 4007 (the 3 photos after the RCZ R). Cooperation continued on the current Outlander Sport, seeing even better-differentiated French versions in the Citroen C4 Aircross and Peugeot 4008 (next 3 photos).

They've even come together on electric vehicles, with the Mitsubishi i-MiEV (above) gaining frog versions called the Citroen C0 and Peugeot i0n (below).

While that might help PSA shore up sagging sales in crisis-torn Europe at the moment, and it helps move the metal out of Mitsubishi's quiet factories, the companies seem to be going their separate ways, rather than expanding their partnership. That's a mistake, I think.

PSA has long been overly dependent on sales within Europe, which is struggling badly under a continued recession. They're totally absent in the growing American market, however, and have been since the last 405s and 505s left the lots around 1992. If they wanted to hack it in the American market, they'd need to re-establish a dealer network and probably produce vehicles in America to insulate them from currency fluctuations. On their own, both goals would be prohibitively expensive to seek under normal circumstances. As cash-strapped as they are now? Forget it.

Mitsubishi already has a dealer network (albeit a small, shrinking one) that has seen their aging midsize sedan, iconic sport coupe, and midsize SUV pared from the line without replacement. As I noted above, they already have a plant in America, operating at less than 20% capacity. The new Outlander and Mirage have been launched with enough fanfare to rival the Suzuki Kizashi. The Outlander Sport is showing its age. And their core product, the Lancer, is entering its 7th season on the American market without major changes.

Meanwhile, PSA has launched a steady stream of new products, including the fantastically-styled C4 Picasso compact MPV (think Mazda5), which debuts a whole new flexible architecture for the company. They need that architecture to sell in volume to make money.

So why don't they make a deal? They could build the C4 Picasso and its derivatives at Normal, IL, badge them as Mitsubishis so the company doesn't have to go to the massive expense of re-establishing their own brands in America, and ship them to Mitsubishi dealers who are dying for dynamic new products.

When I look at the beautiful new Peugeot RCZ, I can't help but think "5G Eclipse".

Instead of the lacklustre Mirage, we could get the acclaimed Peugeot 208, or Citroen C3 and DS3.

We could get sedan/hatch versions of the 308, C4, or DS4 to replace the massively aging Lancer.

The C4 Picasso would make for a great Mazda5 fighter called the Mitsubishi Expo or Chariot.

The C5, DS5, or 508 would be perfect as Galant replacements.

And the Peugeot Partner/Citroen Berlingo would be a great Ford Transit Connect and Nissan NV200 competitor.

Meanwhile, Mitsubishi's new midsize truck and SUV concepts portend new entries in the most profitable segments of the vehicle market. Segments PSA doesn't field a competitor in, with profits both companies need.

So why isn't this happening? Why is Mitsubishi running to Renault-Nissan and working on market-redundant products with them? With Renault turncoat Carlos Tavares joining PSA soon, and the Chinese knocking at the door, I can't see the tie-up with Mitsubishi continuing on PSA's end, either.

The two companies would complement each other so nicely.

What do you think? Other than tl;dr.

DISCUSSION (9)

duurtlang > AMC/Renauledge
11/25/2013 at 17:01

At first I came across the following quote, and I shook my head: (about the SUVs and electric minicars)

Al these rebadged Mitsubishis didn't sell at all. There was no point in introducing them, it tarnished the PSA image, from the start it was obvious these wouldn't sell and PSA should've know better. However, then I read on. You've got a great point; PSA could use Mitsubishi to gain traction in the US as it's got the product, it just lacks the infrastructure. Mitsubishi's got the infrastructure but lacks the product. It's a match made in heaven.

AMC/Renauledge > duurtlang
11/25/2013 at 17:04

I didn't have sales figures for the 4007 and C-Crosser. Are the C4 AirCross and 4008 not moving, either? I did know that the i-MiEV derivatives weren't moving, though. There is almost no business case for any of that trio at the prices they're charging.

Which is why I used the phrase "that might help PSA shore up sagging sales" instead of "has helped".

And part of the problem with the rebadged Mitsus was none of those cars was well-developed. If Mitsu and PSA could get together, they'd reduce the costs of vehicle development and could afford to make their vehicles a more competent basis for derivatives keyed to each others' brands.

KamikazePigeon > AMC/Renauledge
11/25/2013 at 17:18

Kinja'd!!!

The headlights on this remind me of the new Cherokee.

A look that's seriously growing on me.

AMC/Renauledge > KamikazePigeon
11/25/2013 at 17:19

Yup. Me, too. And the C4 Picasso is supposed to be really good.

duurtlang > AMC/Renauledge
11/25/2013 at 17:33

I think we're agreeing with each other.

And no, the C4 AirCross and the 4008 aren't moving that many numbers . They're lackluster everything and lack the PSA USPs their truly French brethren do have. The 4007 and C-Crosser are just plain too large as well, there isn't much market for vehicles like that even if they were great. Unless when they were built like the Citroën DS line, but Mitsubishi doesn't build stylish or luxury vehicles.

duurtlang > KamikazePigeon
11/25/2013 at 17:40

I haven't seen the new Jeep in person, but the Citroën looks.... different than the rest of the cars you tend to see. I haven't yet decided if I like it or not, but I do applaud it for being different .

duurtlang > AMC/Renauledge
11/25/2013 at 17:42

PSA is stepping up their game quite fast. I don't know where you're at, but if you're not in NA I'd advise you to test drive the new Peugeot 308. It's a very good car to drive, the interior is great and the exterior is... a little bit too conservative to my liking.

KamikazePigeon > AMC/Renauledge
11/25/2013 at 17:48

I'm not familiar with PSA products at all (being Canadian), but I've always liked the look of them (particularly Peugeots). I completely agree with you that Mitsubishi could use the partnership to import and inject some excitement into the brand with the RCZ (as a possible Eclipse). Like the last generation of Eclipse, I've heard that the RCZ is a bit on the heavy side limiting its appeal in that sense. Does this hold true? And what are your thoughts on the RCZ in terms of performance, price etc?

I also agree with your Galant replacements like the 508. It's definitely a face that could be seen in North America in the future. I just looked up the wagon as well and something like that would be fantastic. The engine selection seems in line with what's offered here in NA for a large family sedan.

I'll also gladly take a DS3 instead of the Mirage. There are very few new cars I can think off that just leads me to think " NOPENOPENOPENOPENOPE". I will discourage anyone I know to purchase one.

The Lancer desperately needs a new generation...like... yesterday. I just can't believe Mitsubishi's "Bread and Butter" is so old and they're not doing anything about it. I don't know much about the DS4 other than what Wikipedia says about it but I think if Mitsubishi wants to keep their reputation (whatever that is currently), the next Lancer needs to be their own solo development. The Lancer was such an icon. I don't think it's right for a company to succumb to the pressure of what their friends are offering in other markets. No matter how good or bad they are.

Unfortunately, I believe strongly that Mitsubishi will cease to sell vehicles in North America within 2-5 years if they don't inject some excitement into their line-up quickly.

AMC/Renauledge > duurtlang
11/25/2013 at 17:48

Right.

Well the other thing I find baffling is that PSA has decided to forge ahead with Peugeot as the "premium" brand and Citroen as the bargain, volume brand. Trouble is, Citroen's got a premium DS line of cars and their big luxury cars (Traction Avant, DS, CX, XM, and C6) are far more memorable than Peugeot's.

They just seem confused over at PSA in a lot of ways.