Mitsubishi is remaining optimistic in the face of potential tariffs from the Trump administration.
The Japanese company imports every vehicle it sells in the U.S. and could be hit hard by a 25 per cent tariff on foreign-made cars sold in the country. Nonetheless, chief operating officer Trevor Mann says the automaker has some things up its sleeve, Automotive News reports.
For starters, it is planning a host of new models to launch from 2020. These will include the next-generation Outlander and a selection of other models using platforms and engines from Renault and Nissan. Mann believes these vehicles will boost Mitsubishi’s appeal.
Further helping Mitsubishi is the fact that the United States is still a very small market for it. Just 10 per cent of the brand’s worldwide sales originate from the U.S. and the country contributes less than 10 per cent to Mitsubishi’s profits.
“It’s not going to be a corporate disaster for us. The impact on us would be less than on many other brands. It’s a bump in the road that we’re going to have to repair,” Mann said.
Mitsubishi operated a production facility in the U.S., but closed it down in 2016. Once 2020 comes around, Mann revealed that the manufacturer may think about restarting U.S. production to protect it from long-term tariffs.
Despite its optimism, the brand does want to increase its footprint in the country. In the fiscal year ending March 31, 2020, Mitsubishi intends on bumping up North American sales by 23 per cent to 190,000. Such a figure outpaces the 18 per cent growth target which it is aiming for globally.