Mitsubishi Motors has named a new chairman for its struggling U.S. subsidiary, the first time that post has been filled since 2007 when the Japanese-owned maker was struggling for survival.
With 35 years in at the maker, Gayu Uesugi appears to carry the credentials needed in his new post, having worked at Mitsubishi’s Japanese headquarters overseeing product strategy and development and cost control. The maker let costs run out of control over the past decade – in part with an ill-conceived marketing strategy that saw thousands of young buyers get a year’s free use of Mitsubishi products before handing the keys back to the company.
With its U.S. market share at less than a half percent, analysts warn that Mitsubishi cannot long sustain a presence in the States without a major breakthrough. The alternative would be to follow the example set by American Suzuki which has declared bankruptcy and will now stop selling cars in the U.S. market.