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Mitsubishi to build a low cost car
By Yoann Besnard on 21 April 2008 | 
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Mitsubishi has announced that it is currently working on a low cost model expected to be launched by 2010.
Mitsubishi is the latest carmaker to join the budget car battle by announcing its intention to sell its new model in 2010. While other carmakers have generally developed a new platform or used an all platform to build compact models, Mitsubishi is taking a different path which might also be riskier.
In order to cut cost, the Japanese carmaker plans to reuse a platform used to build the famous Kei car. Mainly available in Japan, those small vehicles are powered by a 660cc petrol engine. When exported, they come with a bigger engine. For its low cost model, it would likely be a 1.0-litre engine.
"The mini vehicle business in a sense is a weakness because they are only sold in Japan, but we can turn this into a strength by building a global car using the platform," company’s president Osamu Masuko said.
The car is rumoured to cost below 1 million yen/£4,800. At first glance, Mitsubishi’s project looks a bit clumsy. Indeed, the carmaker already offers the small Minica (pictured) for ¥765,450/£3,750 on the Japanese market. In the UK, the Peruoda Kelisa costs £4,812 while a proper Hyundai i10 only costs £6,495. In emerging markets, the famous Logan doesn’t ease Mitsubishi’s situation. In Romania, the entry level Logan only costs £5,100 and is much bigger and roomier than any Kei car Mitsubishi offers.
By taking the easy path, Mitsubishi might meets failure.
