Mitsubishi's US dealer network continues to shrink as sales decline and frustration mounts. Since 2019, the brand has lost 56 dealerships, dropping from 355 to 299 stores.
Dealers cite weak products, heavy fleet sales, and low profits as reasons for leaving. Some are even selling inventory at a loss to get out.
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Dealers Selling Cars at a Loss
One dealer told Auto News he purchased 14 cars from a competitor for $7,000 to $8,000 below invoice.
The closing store was selling only two new Mitsubishis per month.
By contrast, his other franchise sold 150 vehicles from a different brand in the same period. The disparity highlights the struggles Mitsubishi retailers face.
Nearly 60% of Mitsubishi's first-quarter volume went to fleet buyers. Dealers say lower-trim vehicles are often diverted to rental companies, leaving retail stores with limited inventory.
Average net profit at a Mitsubishi dealership is below 2% of sales nationwide.
A Midwest dealer who closed his store said he had “lost confidence” in the brand and was “fed up” after years of losses.
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Quality Over Quantity Strategy
Mitsubishi CEO Mark Chaffin says the dealer reduction is part of a strategy to replace small-volume stores with larger operations.
The company terminated around 35 franchises recently while adding a dozen new dealerships and approving 30 more.
“It’s quality over quantity,” Chaffin said. However, dealers remain skeptical about the brand's future.
The lineup is aging, with the Outlander Sport riding on a platform that is roughly 15 years old.
Mitsubishi promises new vehicles, including an all-electric crossover, but dealers are not convinced.
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“Until Mitsubishi figures out how to get dealers excited about the cars and make money on them, they’re going to have a tough road,” one dealer said.
