Mitsubishi Motors North America Inc. sang its own rendition of “Viva Las Vegas” last month when it welcomed football fans to the Sam Boyd Stadium for the Mitsubishi Motors Las Vegas Bowl.
It’s the first time the Cypress-based automaker has been a title sponsor of a college football bowl game, and it spared no expense to ensure the nearly 42,000 fans at the game—and the millions more watching it on TV—were aware of its presence.
Viewers and attendees at the Dec. 15 game—won by Fresno State 31-20 over Arizona State—were blitzed by branded signs and displays for Mitsubishi’s latest models, while marketing efforts made it all the way to the 50-yard line—the coin toss was done by President and Chief Executive Fred Diaz, who was, naturally, escorted to the field by two Vegas showgirls.
Sponsoring the game, which was televised on ABC, is one of several big plays the company wants to run this year as it marked its sixth consecutive year of growth in 2018.
“This particular event gives us a chance to gain massive exposure—[more than] 3.8 million people that may not even be considering our brand,” said Mark Chaffin, who last May was promoted to Mitsubishi’s chief operating officer.
“This year [2018] is really a relaunch of the brand and to increase that exposure and show everyone what we have.”
CUV Pioneer
Consider Mitsubishi’s growth the auto equivalent of Knute Rockne discovering the forward pass in 1913.
The automaker was one of the first to notice consumers shifting from sedans to crossover utility vehicles.
While it’s reaping the rewards of that foresight with its Outlander and Outlander Sport models, Mitsubishi admits the challenge will be keeping the momentum as competitors rush to market with their own CUVs.
“We’re working with our dealers to elevate the experience, so we’re going through a process now where we’re remodeling our dealership facilities,” Chaffin said. “What we’re really trying to convey to the consumer is not only do we make really great products, but we want to give you a really great customer experience.”
The company’s sales were up 14% for the year, selling 118,074 units—the second consecutive year unit sales reached more than 100,000. Sales also increased last month by 5.7% to 8,986 vehicles, making it the best December sales month since 2007.
That comes as other major automakers, including locals Hyundai Motor America in Fountain Valley and Kia Motors America in Irvine, remained relatively flat.
Comeback Kid
The automaker has come a long way from the Great Recession when sales hovered around 50,000 units in 2009, according to data from WardsAuto.
At the time, insiders speculated that much like its Japanese counterpart Suzuki Motor Corp., it too would ditch the U.S. market because of poor sales.
Rumors sparked again a few years ago when Mitsubishi announced it would stop manufacturing its vehicles in the U.S. and sell its manufacturing plant in Normal, Ill.
While its market share in the U.S. is still less than 1%, the company hit a milestone in 2017 when vehicle sales surpassed 100,000 units for the first time in 10 years.
That same year its Japanese parent Mitsubishi Motors Corp. celebrated its 100th anniversary, announcing a new brand strategy, a global tagline of “Drive your Ambition” and its e-Evolution concept car, which made its North American debut at the L.A. Auto Show in November.
Diaz said during the 2017 show that the electric concept car is an example of where the company is headed.
“This e-Evolution concept is a technical concept built to illustrate the strategic design direction of a renewed and recharged Mitsubishi Motors brand,” he said. “Our future is rooted in our dedication to lead and stay at the forefront of vehicle technology from our proprietary all wheel control system to vehicle electrification.”
Part of the brand’s three-year global business plan, announced last year, is its commitment to electrification.
“We have the expertise [and] we have the resources to make this plan work,” Diaz said.
“Mitsubishi is a partner in the world’s largest automotive manufacturer alliance and we will continue to use these synergies to make better cars for our customers and contribute to Mitsubishi’s sustainable growth.”
Diaz is referring to the Renault-Nissan-Mitsubishi Alliance, which it joined in 2016, making it one of the world’s biggest automotive groups selling one in nine vehicles worldwide.
Perks of the alliance have recently been overshadowed since the November arrest of alliance Chairman and Chief Executive Carlos Ghosn, nicknamed “Le Cost Killer,” over alleged financial misconduct.
Diaz, who took on his role in April after succeeding former Chief Executive Ryujiro Kobashi, has insisted in reports that business will not be affected, telling Forbes it “had savings of $6.6 billion as an alliance from procurement and purchasing” in 2017 and the partnership would allow it to “bring cars to market more price effectively and at lower cost with better technologies.”
Lady Luck
The Mitsubishi brand continues to charge ahead with its crossover models; new entries to its latest lineup include the Outlander PHEV and Eclipse Cross.
Chaffin said it’s also looking to expand its network of 355 dealers this year into markets across the U.S., where consumers are showing increased interest in CUV vehicles.
He added that improving the customer experience at existing dealerships will also be key, pointing out the company’s recent plans to update its dealer facilities.
Roughly 30 dealerships in the U.S. are expected to be updated to a more contemporary look by spring with the remaining dealerships following in successive years.
“The market is changing quite a bit and the way people buy and research cars is evolving,” Chaffin said. “Our focus right now is to make sure that just like we predicted the early transformation to the CUV market, we get ourselves transitioning where we can market, target and communicate to the right people.”
Case in point: its two-year sponsorship deal of the Las Vegas bowl game.
Chaffin declined to reveal figures, but said over the past two years the company has increased its marketing budget by 23% and will continue to invest in efforts to promote the brand.
He added that it has a strong following among Generation Y and efforts like experiential events and that test drive events in certain markets have proven successful.
It sponsored a road trip for two students from Fresno State to Las Vegas in its 2019 Eclipse Cross. The broadcast journalism students—who witnessed their school beat Arizona State—spent the time filming a package about their trip and the game.
“As more people come to the brand, we want to make sure we establish ourselves as a brand that provides our customers with a great experience,” Chaffin said. “That’s a big focus for us.”
