Mitsubishi Motors' electric dreams

Posted by: Ian Rowley on October 6, 2008

If Mitsubishi Motors chief Osamu Masuko is unduly concerned about slumping auto sales in the U.S., Japan, and Europe he wasn’t showing it at a media lunch in Tokyo today.

While realistic about the current global economic situation and its impact on auto sales, he emphasized the progress made at the automaker since its painful divorce from DaimlerChrysler three years ago, which followed recall scandals in Japan and a disastrous incentive scheme in the U.S. The carmaker probably wouldn’t have survived if it wasn’t for a $2.6 billion lifeline from other Mitsubishi keiretsu partners.

In the year through March this year, Mitsubishi had its best ever year for operating profits and its employees no longer believe the company is on the verge of collapse: when Masuko took over as president in January 2005, the company had been losing 70-100 employees a month from its development division alone, he said. Masuko also laughed off a question that Mitsubishi is better placed to weather the U.S. downturn because it sells so few vehicles these days.

But perhaps of most interest is that Mitsubishi will be the first Japanese automaker to begin selling an electric vehicle when it launches the i-Miev next summer. Based on the popular i minicar, the i-Miev can be recharged at home, promises a range of 100 miles and no C02 emissions (Taking into account the C02 produced to generate the electricity, Mitsubishi reckons the i-Miev, in Japan, emits 28% of the C02 of a gasoline equivalent). Running costs will be either 1/3 or one 1/9 of the gasoline version depending if charging is done at day or night. Sales will start in Japan only but exports are expected from 2010.

Reports in Japan suggest the car could initially be between a pricey $23,000 and $28,000, although the figure is expected to drop as production increases from an initial 2,000 a year to over 10,000 a year by 2011. Given safety concerns over lithium ion batteries—not to mention Mitsubishi’s painful history of recalls—Masuko said Mitsubishi’s cells are “100% secure.” He added that using its EV know-how, Mitsubishi is also working on plug-in hybrids for longer distance driving.

Of course, such small volumes are unlikely to worry Toyota, which plans to sell a million hybrids a year by 2010s, and other larger carmakers. Still, few would begrudge Mitsubishi, which doesn’t sell a conventional hybrid, a little success after its brush with the scrapheap.

Reader Comments

Interconnect

October 6, 2008 2:50 PM

Mr Osamu Masuko your initiative highly appreciated, as I was not at your lunch press conference. i-Miev is like the Intel Pentium 1, with progressive speed, power processor is most powerful at fractional cost. EV concept will progress very rapidly, with production in developing/emerging markets as its modular assembly to be exported in CKD. It's the Tata's Nano of Mitsubishi. Had Ratan Tata the idea of EV, I'm sure he would have come up with a low cost EV car for $2500-00 yes scaled down. i-Miev is born in Mitsubishi family, with Mitsubishi Electric, as I see it at the Paris show as head turner. I suggest the name of i-Miev be named as "Peace" as it will bring smile, hapiness to many people. Countries motorising rapidly, with the youth generation crazy to car ownership, should love the Mitsubishi which is noiseless very rare for a car to be in the developing countries. Suggest to please consider the CKD export for sample i-Miev as an ambulance version and passenger car with the name of Peace. I'm most desirous to assist you with the market realities of the product. Please advise. eMail: haroon.rashid@akunet.org

Post a comment

 

About

Bloomberg Businessweek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies.

BW Mall - Sponsored Links

Buy a link now!