The last quarter of car sales was a shitshow for even the most successful brands. Does this mean the car market is collapsing? Absolutely not. The market is in a strange neutral period where the difference between a good month and a bad month can come down to a slight nudge. Unless you’re Mitsubishi. Nothing is stopping Mitsubishi.
It’s sales day so I now have third-quarter delivery reports from all the big players to talk about, and I am jacked-to-the-tits as Ryan Gosling loves to say. I’m going to start off this Morning Dump with the general market and why I think that Mitsubishi is particularly well positioned here.
What about Stellantis? They’re still at the bottom and it’s worth calling out just how bad it is over there. And Tesla? The brand is somewhere in the middle. Finally, let’s wrap up with how hybrids are doing in this “Year of the Hybrids.”
Overall Q3 Market In U.S. Probably Down 1-2%, Mitsubishi Is Up 42%
Spending on automobiles is “volatile” according to Cox Automotive, which is as good a description as you’ll find anywhere. The difference between an up month or a down month can come down to a hurricane, a cyberattack, a port strike, the number of selling days, or a recall. In a robust market, there’s room to absorb disruptions, but that’s not the market we’re in right now.
Automotive News has a roundup of the automakers that have reported Q3 sales in the United States, and the numbers are weak almost across the board, with brands overall averaging sales down about 0.5% compared to Q3 2023. Adding in dismal Stellantis numbers and assuming weak performance by Tesla, it’s likely the market is down even more.
Even stalwart brands like Toyota are seeing a drop, though in Toyota’s case, its 10.4% quarterly drop has a lot to do with a stop-sale on its three-row crossovers. The brand also regularly has the lowest inventory in the country, and it’s extremely difficult to get incentives on a Toyota that doesn’t rhyme with “Bees Forks.” Honda is up for the quarter, but even that brand suffered a 7% sales drop in September after reporting 18 straight months of sales gains.
What’s the deal? Affordability. It’ll take a long time for interest rates to come down, and there are still likely buyers on the sideline waiting.
From the Automotive News story linked above:
The average annual percentage rate on a new vehicle was 7.1 percent in the third quarter, Edmunds said, marking the sixth consecutive quarter that new-vehicle finance rates have hovered above 7 percent.
Edmunds, citing an August survey, said 62 percent of car owners planning to buy a new vehicle in the next year have delayed a purchase because of high interest rates.
I also think political uncertainty plays into this. If rates can come down a little in November and the election creates a clear winner I think people might be more confident about making the purchase and we could see a huge end to the year. At the same time, another disaster or war in the Middle East could cause the opposite to happen.
If there’s one way to get through this market it’s to have affordable vehicles or hybrids. Do you know who has both? Freakin’ Mitsubishi! Back from the dead! The Automaker Voted Most Likely To Not Be An Automaker Anymore! The company nearly collapsed in 2016 after a testing scandal, and a hasty alliance was arranged that saw Nissan acquiring a third of Mitsubishi.
The brand’s Q3 sales rose to 42.3% over last year, which is better than everyone else. The closest was Mazda, but that brand was only up 24.9%. While Mitsubishi is still a small-ish brand, only selling 31,588 cars in that period, this makes it almost as big as Acura and twice as big as Infiniti. If it keeps growing at this rate it’ll start catching up with brands like Buick and Audi.
How is it doing it? Let’s look at Mitsubishi’s own sales chart:
Mitsubishi doesn’t sell many vehicles and it sells no vehicles with a starting price above the industry average transaction price (which is about $48k). The most expensive vehicle for sale in the lineup, the Outlander PHEV, starts at around $42,000 with destination charges included. The cheapest is the $17,000 Mitsubishi Mirage.
Which models are selling better than they were a year ago?
Sorry, couldn’t help it.
Sales of every single model are up, but it’s the cheap Mitsubishi Mirage that’s up 153% year-over-year. I don’t think there’s any trickery here as the Mirage hasn’t been updated much and has been on sale with few disruptions since coming out of the pandemic. People need cars and these cars are cheap.
Of course, Mitsubishi said they’re going to stop selling the Mirage after 2025, though the brand plans to stockpile cars to sell through next year. Perhaps Mitsubishi should reconsider?
Tesla Did Fine, Not Great, Just Fine
If you look only at the third quarter then Tesla’s 462,890 deliveries is an ok number. If you want to zoom out and look at the bigger picture it’s not that great.
Tesla Inc. posted its first increase in quarterly vehicle sales this year, though the automaker let down investors expecting more of a bump from China boosting electric car subsidies.
The Elon Musk-led company handed over 462,890 vehicles to customers in the last three months, up 6.4% from a year ago. Deliveries came up shy of the roughly 463,900 units expected among analysts tracked by Bloomberg.
“We will see some pressure on shares this morning as investors walk away from delivery numbers expecting more,” Daniel Ives, a Wedbush analyst with the equivalent of a buy rating on the stock, wrote in a report Wednesday.
Tesla will be showing off its Cybertaxi and other products later this month, which might cause the stock price to go back up if CEO Elon Musk can take a break from tweeting to deliver a good presentation.
Stellantis Sales Down 20% In Q3
Yeah, Stellantis didn’t stick the landing. It’s grim folks. You know how bad the news is? The one bright spot is Fiat, whose sales were up 118% this quarter with a whopping 316 total vehicles delivered overall. I’m pretty sure our Mercedes has sold more cars than Fiat this year.
Dodge is down 43% year-over-year, Chrysler is down 47%, Ram is down 19%, Jeep is down 6%, and Alfa is down 29%. It sucks. I haven’t seen this many negatives since that semester I volunteered in the junior high newspaper’s dark room. Excluding the new 500e, the cars that saw increases quarter-over-quarter were the Wagoneer (+3%), Compass (+71%), and the Hornet (+120%). The Hornet rolled out last year so some of this might be because Hornet had an incomplete quarter.
And what are the models that have seen sales decrease?
- Wrangler
- Gladiator
- Cherokee
- Grand Cherokee
- Renegade
- Grand Wagoneer
- Ram
- ProMaster Van
- 300
- Pacifica
- Charger
- Challenger
- Durango
- 500X
- Guliia
- Stelvio
That’s most of them. The Compass is one of the few affordable vehicles in that lineup and that’s the only one that’s selling.
Hybrids Rule Everything Around Me (HREAM)
It’s clear that affordable cars are doing better this quarter. What else? Hybrids. Ford is one of the few major automakers with quarterly gains (of 0.7%) and, while some of this has to do with F-150 delays, a lot of it has to do with hybrids. Last quarter Ford’s ICE sales were down 2.8%, its EV sales were up 12.2%, and its hybrid sales were up 38% year-over-year in Q3 2024.
While the rollout of the new Ford Ranger helped boost the brand’s sales, the company still sold 33% more Mavericks than last year, bringing total sales this year to over 100,000 models. Ford is finally breaking out specific hybrid truck sales numbers and we now know that Ford sold 16,561 hybrid Mavericks in Q3. That would make it the best-selling hybrid truck, except… the F-150 Hybrid just hit 20,129 sales.
It’s like this across the market. Hyundai hybrid sales rose 36% in September even though overall Hyundai deliveries dropped by 9%. Toyota dealers are saying that customers are waiting months for hybrids. The third quarter was Honda’s biggest ever for “electrified sales,” which is Honda’s hybrids plus a few Prologues thrown in there.
Hybrids are where it’s at.
What I’m Listening To While Writing TMD
How have I never done A Tribe Called Quest here yet? Everyone is great on “Scenario” but it’s probably Busta who steals it.
The Big Question
Would you consider a Mitsubishi?
I probably would have test driven an Outlander PHEV when we were looking for a new family car if it was the latest gen. Unfortunately the 4th gen PHEV model didn’t go on sale in the US until later in 2022. We ended up with a (gas only) 2022 Kia Sorento X-Line EX instead which has been great for us. The hybrid Sorentos were unobtainium at the time and the PHEVs were (and are) way overpriced for the range you actually get.
I’m told the Outlander PHEVs are quite nice and it is essentially an EREV (yes yes the engine can drive the wheels at highway speeds so not technically). They’d be smart to bring the PHEV version of the Eclipse Cross here.
Every Outlander Sport sold in the US has got to be pure profit at this point. The years they’ve wrung out of that platform are nothing short of astounding. And the next gen that’s in Europe is really just a rebadged Renault.
Their strength right now is their PHEV platform, they just need to roll it out more widely.
It’s worth nothing that Mitsubishi has a notoriously small dealer network.
According to the internet, a mere 326 dealerships across the US vs 1,275 for Toyota and 2,407 for Stellantis (Chrysler/Jeep/Dodge/Ram).
Every Mitsu dealer I’ve seen on the East Coast has a dangerously shady reputation even by dealer standards. But the product, while a bit archaic, is decent.
Good for them.
I would consider a Mitsubishi Mirage if I could buy it using the same formula that I purchased my Chevy Spark with: 4 years old, 47,000 miles, $3500.
Speaking of Mitsubishis, I have a family that’s renting a house from me that I feel bad for. They were struggling a few years ago, but fought the good fight trying to keep a couple of shit-boxes on the road for as long as possible as they didn’t want to deal with car payments.
Finally, they got fed up, decided to bite down on the credit bullet and purchase some type of gently-used 2015 Mitsubishi crossover for a family car. All was fine until last year when the AC went out. Never did get that fixed, and it’s just as well as this year the engine decided to go out. It’s out of warranty of course, but I think they still have about a year of payments left on it.
Based on these numbers Mitsubishi is gonna HURT when they kill the Mirage.
Not sure how much profit they make on a $18,000 car.
Mirage sales had also actually dropped in the last 2 years, so it seems like they’re more restored to the prior sales levels which were pretty consistently at or above 20k/yr before. I get the sense Mitsubishi has been building more Mirages, perhaps in anticipation of the discontinuation, so Mitsubishi dealers are dealin’ more with more cars to sell, maybe more freely doing the “we’ll finance anyone!” thing. And a new Mirage is a better bet than say, some unknown used whatever or something at a BHPH lot. But it would be interesting to see what Mitsubishi dealer supply looks like in a few months then. Mitsu said they expected inventory to last til next summer when they announced its discontinuation.
Not to say they shouldn’t offer something at the low end of the market. That’s a product hole that the brand has steadily been in. I don’t know if it’s been said anywhere, but I would suspect it’s some safety or emissions reg that they don’t want to invest in the product and that’s actually why it’s being dropped.
Big/pricey models did see some gains too. Palisade is up 44% in the quarter, Pathfinder 45%, Pilot 62%, and none of those are all that new as far as their segment goes. But I think incentives play in here, more deals to be had.
Also – nothing in the lineup appeals to me, but I would feel good about recommending the Outlander to someone shopping that segment. Ironically its Rogue counterpart saw a 24% sales drop in the quarter. I’d take the Mitsu between the two like-equipped examples – the old 2.5 is probably a safer bet, plus a better warranty.
Outlander works just fine.. The post Evo Mitsubishi basically took the Toyota formula, keep the drivetrain as is, improve incrementally and sell at a lower price. It still uses CHAdeEMO for the PHEV it is adequate.
I know they will do an update to the Outlander PHEV, and I am sure the CHAdeEMO will disappear then.
I can see they do it eventually when NCAS become more common. In the end, NCAS is just repackaged CHAdeMO. They can let the current system amortize as long as they can.
Maybe I’m wrong, but I’ve never heard that Mitsubishis are junk. Maybe not topping any car mag comparison test, but they aren’t spitting out their broken transmission after the warranty is up.
I’d probably consider a Mitsubishi before a few other options, but I also have the luxury of being able to afford a new Toyota or Honda if I want one.
I saw a Mirage Ralliart on the street another day, it was surreal – I didn’t think anyone actually bought them.
I’ve seen one. It was in the grocery store parking lot parked far away next to an island like I try to park. I thought it looked surprisingly good in a goofy fun way. Why not have your shitbox be a bit ridiculous?
Do MBA schools not teach that offering affordable products opens up a larger pool of prospective buyers?
Probably. But they also teach that selling one thing with a profit of $1000 is the same as selling 100 things with a profit of $10 each.
And when a student asks if that means making a more high-end product or drastically cutting the costs of the existing product, the professor just tents his fingers and says “yes” in a Palpatine voice.
MBA schools basically teaches students to chase unicorns, or advice companies that they are unicorns because they have 4 hoofs and a wart.
The fact that the Mirage, arguably the most dated car in the US market, is one of Mitsubishi’s top sellers, shows that there are still people out there who want cheap, honest transportation (to steal a line from The Love Bug). I think that Mitsubishi’s excellent warranty is a driving force too. Yes you could buy a used Corolla or whatever…or you could buy an inexpensive, new, no frills car with a good warranty to back it up. Buying new can often open up better financing options as well. I’ve read many stories on here about how cheap new cars like that have helped people get back on their feet, or start a new life, etc. in one way or another. I’m glad the Mirage is still fighting the good fight right up till the end.
Appropriately, the real hero of “The Love Bug” was a Chinese entrepreneur/racing enthusiast. We need Tang Wu now more than ever.
I’ve been seeing a lot of Mavericks in utility fleet livery. Not a bad thing, but fleet sales might not be so profitable. They are usually showing up where Transit Connects were going before. Not as practical for urban delivery uses, but fine for the phone/cable guy and some ladders. Definitely better than some of the engineering firms that send their site inspectors out in full sized pickups. I bet you that even mall crawlers use the bed more often.
Ford maybe cannibalizing part of it’s own business but the economies of scale should make up for it. Now, if they were wise, they would spin a new Connect off of the same platform, but plan to also offer an EV version. Here in Canada, those Connects were like cockroaches. There has to be some significant volume to capture.I do see RAM moving in with their small van, but at least one fleet customer I know is not comfortable with betting on FIAT to keep his workers on the road.
+1 on this. They have them in Europe and I wish they would bring them over here! Our 2013 TC has been trouble-free, economical and just so darn useful!
If I had had anything like a Maverick when I was still up on the sticks, I think I’d be a much less bitter and jaded person. My work vehicles have been a Transit with fries stuck between the seat and center console, a freaking Grand Caravan, and a Ram Promaster that a friend took one look at and said, very fairly, “That’s not a real RAM!”
Later on they gave me a Corolla hatch with flappy paddles that was way too much fun for a company car 🙂
I read somewhere (can’t remember where, and I guess it’s always possible that the “at the office” dose of TRĒ HOUSE Sour Tropical Magic Mushroom Gummies made my memory a little less reliable than usual, but I don’t think so) that Ford is planning a van based on the Maverick platform, in part because it won’t be subject to the chicken tax as the Transit Connect was after the government said that it was still a truck even though they left the back seats in until it arrived in the US.
My wife and I bought a little 24 Mirage last October and we recently picked up a used ‘22 Outlander AWD and fell in love with it so much that I picked up a new ‘24 Outtie with the tech and black package. Outstanding vehicles, all 3. The little Mirage is a light, inexpensive car but it is built very well. Every single bolt is marked in blue quality control ink and it has been rattle-free and delivering over 50mpg on average.
Cannot brag enough about the ‘22 and ‘24 Outties as well. They are well-built and ride and drive very well.
Very impressed so far.
Things that impressed me on the Outlanders is that the ‘22 and ‘24 have double-pane laminated front door windows, and an excellent tech system with two instrumentation layouts and a great sound system to boot. It is not a rocket but it is very quiet inside.
Wow, the first Mitsubishi family I’ve ever met.
Chickity Choco, the chocolate chicken!
In Canada here, Mitsubishi has THE BEST warranty, so it’s a no brainer especially if you want a hybrid or other vehicle on a budget.
Brands like Toyota and Honda would do well to offer similar warranties if they expect people to pay the kind of prices they ask while backing up their wavering reputation for being reliable.
I was considering an Outlander PHEV, and I honestly think that Mitsubishi offers a decent value proposition. I didn’t find it comfortable enough to buy, but that may be me, rather than the car.
Mitsubishi’s biggest problems at this point are lack of locations and reputation. If they could convince people that they are a good value and make the cars available, they could have a good shot at cutting themselves a good slice of Nissan’s target demographic.
Interesting that the Mirage is Mitsubishi’s 2nd best seller, in an otherwise all-crossover lineup in a market that seemingly wants only crossovers
Yeah, I’d say they should maybe look into a stay of execution, for now. The tooling has to have been long since amortized and it’s built in Thailand, so the cost per unit ought to be pretty reasonable
Long term, it would be cool if Renault-Nissan made Mitsubishi their low cost specialist brand in North America and maybe brought in rebadged Dacias
I would very much like to walk up to my friends after hearing they’ve done just that so I can say “GOOD NEWS!”
Mitusbishi Kwid
Mitsubishi Sandero
Mitsubishi Logan
Mitsubishi Oroch
Mitsubishi Duster (could use the Outlander name on it)
THIS!!!!!!
I’ll take a Logan, please and thank you
Yes, though the complicated Nissan/Renault relationship makes me think we’ll continue to see more Nissan products rebadged as Mitsubishis than Renault/Dacia products.
Good news!
Maybe Mitsubishi will extend production of the Mirage. I hope they do.
In recent years I have had both a Mitsubishi Outlander (sport?) and a Nissan Rogue as rental cars for week-long trips. I actually kinda liked the Mitsubishi, but hated the Rogue. The Mitsubishi drove better, and I didn’t hate the CVT – it was actually kinda fun driving it on Skyline Drive. I think it was quieter than the Rogue too. The other thing is the standard (powertrain) warranty on these cars is 100K miles – that is a great differentiator (as long as your nearby dealers are marginally competent). If I was looking in this end of the market, I would definitely consider one of the Mitsubishi CUVs. I think driving a new car with a good warranty is better than buying a 3-year old RAV4 for about the same price.
I am admittedly not up on all matters financial, but Mitsubishi used to have a reputation for being the go-to new car for people with absolutely horrible credit.
I think Nissan has taken that spot these days.
Um,nope. Car sales for Mitsubishi still sucked, it just sucked less for them then it did last year.
They only sold 31,000 cars over 3 models. GM sold over 600,000. Same with Toyota.
Mitsubishi simply isn’t for me but thats totally fine. But my 2c on the subject is if the Mirage were about on par with the Nissan Sentra in terms of size and power while keeping it around 17-20k, that would be a pretty nifty commuter.
I thought the saying was “[REDACTED]“? No?
It’s petulant, sure, but I enjoy that the Mirage is outselling the thing they just couldn’t resist attaching the storied Eclipse name to.
This type of news really reflects the disconnect between what the market wants and what niche fans of vehicles that visit car blogs want.
Mitsubishi makes a boring cheap car. That’s exactly what the market is clamoring for. Ford started out in the right direction with the original base hybrid maverick but even it is getting bloated. They can’t help themselves.
Make a boring small CUV that with a hybrid that lands in the 25k range and you could print money. I keep harping on it but the fact that Jeep doesn’t have something to really compete in this market is a travesty. It builds brand loyalty, it keeps plants from going idle and it should be able to be done with a slim bit of profitability.
Car companies got addicted to the covid profit and it will take a few more years for them to lumber out of their hangovers.
Yeah, the Renegade didn’t exactly set the world on fire, but I see them everywhere. Seems like a perfect way to get a new customer in the door, who will then return when it’s time to buy something else, possibly a more expensive model.
Would I consider a Mitsubishi? For what? Kidding. Sure. Friend had a Mighty Max back in the day that I coveted. No company is perfect, but the folks I’ve known who owned Bishis liked them just fine, including the Chrysler rebadges.
My grandpa had a Mighty Max as a farm truck when I was growing up. That thing simply refused to die. I loved it.