On 1 July, Imperial Motor Holdings, through its newly formed subsidiary Brietta, took over the responsibility of the importation and distribution of the Mitsubishi Motors brand in Southern Africa from Mercedes-Benz. One month later we spoke to Brietta chairman, Osman Arbee, about the future of the company.
Mercedes-Benz did well to establish the Mitsubishi brand locally and develop an effective product and parts distribution and support network, but (it could be argued that) the brand never received the necessary level of support and focus. Apart from the Triton bakkie which is a solid performer, the company struggles for sales – the main culprit having been a limited product offering in the passenger market.
“The brand’s product offering covers a broad range and we do have a very solid base to work from,” said Arbee, “but we will have to focus on expanding our offerings, extending our distribution network and finding ways of making the business more effective and efficient.” Making use of Imperial’s broad business offerings will undoubtedly help.
Arbee is an industry veteran and has been responsible for Imperial’s car rental and tourism as well as motor dealership and automotive parts distribution divisions and will work closely with Brietta CEO Jaco Oosthuizen (also well known in the industry) to boost Mitsubishi’s performance in the market. Mercedes-Benz will remain in charge of the distributorship of Mitsubishi’s medium and heavy vehicles.
“We have very promising plans for the brand, but these changes can’t happen overnight. We have no intention to alter the brand’s broad business strategy in the short-term,” added Arbee, who stressed the importance for the current dealer network to remain as stable as possible in order to ensure effective ongoing customer support. “We plan to keep the current parts and product pricing structures unchanged for at least 12 months and, although we plan to increase the number of our dealers (currently there are 44 dealers of which three are owned by Imperial), these things take time.”
The company is currently in the process of building a R35-million head office and parts centre in Gauteng. All current dealership contracts, which currently share their spaces with Mercedes-Benz, are up for re-negotiation in 24 months and all future Mitsubishi dealerships will be standalone showrooms.
Of course, nothing can be done without new products and Arbee plans to broaden and deepen Mitsubishi’s product offerings. “We are very keen to offer a single-cab version of our Triton,” he said. The Triton is currently a very strong model in the Mitsubishi line-up, but a full range is needed for it to successfully compete with the likes of the Nissan NP300, Volkswagen Amarok, Isuzu KB and Toyota Hilux. A single-cab bakkie is sure to be a hit locally, especially considering Mitsubishi’s good service record and broad backup network.
“We are also keen on importing a smaller city car in order to broaden Mitsubishi’s appeal in the passenger market,” Arbee added, but declines to comment on what that car might be. Mitsubishi currently offers both the Colt (a B-segment runabout) and i (a four-door micro car) in overseas markets, but Arbee is adamant that all possibilities are currently being investigated.
Other possibilities could be for the current Outlander and Lancer ranges (both chronic under-performers due to restricted ranges) to be expanded with more engine options and the company could always consider the Lancer Evo and Sportback as halo products. Given the success of the Suzuki Jimny, the company could also consider the two-door Pajero Mini and, sticking with SUVs, there are a few models (such as the Outlander Sport and large Endeavour) to choose from. But, Arbee is quick to point out that, for the most part, volumes remain important for the brand to establish itself, so expect the Colt to be available in South Africa before the latest Evo.
As for the immediate future, the Triton is about to undergo a facelift which should ensure healthy sales for the new owners and a good footing for the rest of the year.