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Mitsubishi Motors "Fightback" Gaining Ground

22 February, 2005

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Adelaide, South Australia: Mitsubishi Motors Australia Limited (MMAL) “Better Built, Better Backed" campaign is already starting to show early signs of success as customers flock back to showrooms.

The campaign, which has been running for only three months, is already delivering results that are uplifting the morale and optimism of MMAL President and CEO Tom Phillips, the dealer network, and factory workers.

"In the past two months, the survey of people who think Mitsubishi Motors will stop manufacturing in Australia has dropped considerably to 54 per cent, down from 80 per cent in December," said Tom Phillips.

"This is a much larger drop than we could have hoped for in such a short time frame and we’re committed to ensuring it continues to decline."

In December 2004, Mitsubishi Motors Australia announced it was investing AUS$8m in a corporate credibility marketing communications program in response to negative publicity and a deflated consumer confidence.

The campaign is underpinned by an Australian-first 5/10 extended warranty on all Mitsubishi vehicles and features a series of television advertisements that are fronted by the company's President and CEO.

Mitsubishi's research shows that over 74 per cent of Australians who have seen the television campaign like it.

"It's encouraging the Australian car-buying public to renew their confidence in the Mitsubishi brand and think about our products," said Tom Phillips.

Mitsubishi Motors continues to bring in a steady stream of new product to their dealerships. Over the next 40 months the entire product range will be refreshed with all new models, including the new Australian-made large sedan which is well on track for launch in October.

Not only are Mitsubishi dealers reporting a big increase in floor traffic, but also inquiry rates on the Mitsubishi Motors web site [www.mitsubishi-motors.com.au] have increased by nearly 600 per cent in January compared to November 2004.

Even external automotive industry analysts, such as John Mellor's Go-Auto web site, have reported a 300 per cent increase in inquiries for Mitsubishi products from readers.

"All of this is a good indication that MMAL is definitely heading in the right direction," added Tom Phillips.

In addition to these pleasing developments on the corporate front, MMAL has also made considerable progress in reducing its inventory of Magnas at Tonsley Park, which has largely been achieved through a revised production calendar and recently- announced additional sales to large fleet customers such as the South Australian Government.

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