Mitsubishi Motors UK has announced further reductions on the price of most models, some by £3,500, while increasing dealer margins. A year ago Mitsubishi was the first major importer to reduce prices of its vehicles, ranging from 10-15%.
The announcement of further cuts was made at the recent Mitsubishi dealer convention attended by representatives from Mitsubishi's 122 dealerships.
The price cuts, effective from January 1, primarily affect the Shogun range which is now 12% cheaper. The new Shogun, which went on sale in May, benefits from a £3,000 saving across most models with the 3.2TD Classic SWB starting at just £21,995, £3,000 less than its introductory price, and the Shogun 3.2TD Equippe reduced by £3,500 to £29,995.
The all new Shogun Pinin five-door which goes on sale on January 1, will be priced from £15,995, £505 less than anticipated, with the top of the range Vivo priced at £18,495, £1,005 less than expected.
With the exception of the entry level Colt, all other Colt models have been reduced by £500-£600. The Space Star 1.3 Classic and Equippe models have been reduced by £400 to £9,995. The Space Star Equippe and Elegance benefit from increased specification worth £900 to include CD player and electric windows.
The Carisma Equippe 1.8 GDI has been reduced by £300 and will be priced at £13,995 on-the-road.
Jim Tyrell, Mitsubishi Motors UK, said: "Since our price reductions last December we have seen customers return to our showrooms as confidence slowly returns to the car market. As distributors we have negotiated with our manufacturer price cuts as well as reducing our overheads and steamlining our budgets for next year.
"This has enabled us to make this second move on UK prices. We believe there is currently 'pent up' demand for new cars as customers wait for the pricing issue to be settled."
But, Mr Tyrrell added, other manufacturers reduce dealer margins to lower prices, Mitsubishi has "made moves to keep our dealers financially viable".
"We need strong dealers so that we can maintain the high levels of customer service for which we are known. This stability also allows us to continue with our expansion plans to have 150 dealerships in the UK by the end of 2001," he said.
"The more dealers we have the more customers we have and the more cars we sell."
According to data from the Society of Motor Manufacturers and Traders, up to the end of November this year Mitsubishi achieved a market share of 0.73%, down 9.51% on the same period last year (See Market Data section).