U.S. Mitsubishi chief: Dealer training will lift sales

LAS VEGAS -- Mitsubishi Motors North America Inc., unhappy with sluggish sales, says U.S. dealers need more training. "Advertising and incentives are not sufficient to increase sales," Hiroshi Harunari, CEO in North America, told dealers here. "We have plenty of room for improvement in new- and used-car sales and in service and parts. "We are willing to help you upgrade your business, but this is not a free ride. You must help as well."As Mitsubishi sales have plummeted in the past few years, dealers have complained about the company's advertising, incentives and consumer-credit programs. But a recent study by parent Mitsubishi Motors Corp. in Japan concluded that many Mitsubishi dealers in the United States need help managing their stores. The company plans an extensive training and business development program for its 526 dealers and their sales staffs in the United States.Heading his first national dealer meeting since taking charge of the U.S. unit in January, Harunari challenged U.S. dealers to sell 130,000 units for the 2006 fiscal year, which ends March 31. That's about a 30 percent increase from the 2005 fiscal year. The first training program involves the redesigned Outlander crossover, which Mitsubishi is counting on to revive the brand's image. It goes on sale Nov. 6.The training will run from Tuesday, Oct. 10, to Nov. 17 in 15 top markets. It will include ride-and-drives, product walk-arounds and briefings on competitors such as the Toyota RAV4. From Nov. 27 to Dec. 17, Outlander classroom training will be given in 19 other cities.Through September, Mitsubishi sales in the United States dropped 6.3 percent from the same period of 2005. That's far better than the double-digit decreases over the past two years. But average sales per dealer still are among the lowest in the industry at about 19 units a month. Through September, the dealers sold 90,104 units. Harunari would not say whether Mitsubishi has too many dealers. "The main emphasis is not on how many dealers we have but to improve all of our dealers," he told Automotive News after the meeting. "It's up to each dealer to increase their performance. The 130,000 (unit) target is a challenge that we need."And a challenge it will be, says dealer council chairman Ted Terp: "I think (Harunari's) determined; he's aggressive, but (the sales gain) is weighted heavily on the Outlander. We have to market it."You may e-mail Kathy Jackson at kjackson@crain.com

U.S. Mitsubishi chief: Dealer training will lift sales

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