Mitsubishi has lost 56 U.S. dealerships since 2019 as sales continue to slide. Dealers say weak products, heavy fleet sales, and low profits are pushing them out. Brand promises new EVs and crossovers, but retailers aren’t fully buying in. There was a time around 30 years ago when Mitsubishi could seemingly do no wrong. The brand had built a reputation with cars like the Eclipse GSX, the 3000 GT VR-4, the Montero, and of course, the Lancer Evolution. Then, for whatever reason, the executives at the brand seemed to water things down over and over again. Now, it’s one of the smallest brands in America. According to a new report, it’s still shrinking, and dealers are bailing out fast. Read: Mitsubishi Boss Confirms A 2026 SUV, And It Sure Looks Like A New Pajero According to Auto News, Mitsubishi Motors North America has reduced its dealer count by 16 percent since before the pandemic. The company opened 2026 with 299 stores, down from 355 in early 2019. That’s a loss of 56 locations and one of the steepest declines among mainstream brands. By comparison, every other mainstream brand has at least 1,000 dealers. Quality Over Quantity, Says Mitsubishi Mitsubishi CEO Mark Chaffin says this isn’t just cost-cutting. The company terminated around 35 franchises over the past year and a half while simultaneously adding a dozen new dealerships and approving roughly 30 more. The strategy centers on replacing small-volume stores with larger operations capable of moving three to five times as many vehicles. “It’s quality over quantity,” Chaffin said. The issue for Chaffin isn’t just getting the brand back on track, it’s combating dealer sentiment that it’s not happening quick enough. Several retailers interviewed by the publication described growing frustration with factory requirements, weak incentive support, and an aging lineup. That lineup remains heavily dependent on older products, particularly the Outlander Sport, which rides on a platform now stretching back roughly 15 years. Dealers Are Dumping Inventory To Escape Some dealers aren’t even waiting to be terminated. They’re reportedly liquidating inventory at thousands below invoice simply to escape. One retailer told Auto News he picked up 14 cars from a competitor for $7,000-$8,000 below invoice, noting the closing store was moving just two new Mitsubishis a month while his other franchise sold 150 vehicles from a different brand in the same window. Others point out that fleet sales are becoming a sticking point. Also: Mitsubishi’s Entire 40-Year US Recall History Is Three Short Of Ford’s 2025 Alone Nearly 60 percent of Mitsubishi’s first-quarter volume reportedly went to fleet buyers. Dealers claim lower-trim vehicles often get diverted to rental companies while retail stores fight over limited inventory. Things don’t look like they’re going to turn around quickly either. Average net profit at a Mitsubishi dealership runs below 2 percent of sales nationwide, according to one source cited in the report. A Midwest dealer who recently shut his store said he had “lost confidence” in the brand’s ability to deliver a competitive lineup and was “fed up” after years of losses. “Until Mitsubishi figures out how to get dealers excited about the cars and make money on them, they’re going to have a tough road,” he told the outlet. An EV Crossover Is The Comeback Plan Mitsubishi says new cars are coming later this year. Of course, the car in question is an all-electric crossover. And those aren’t exactly setting dealer lots on fire right now. It would be sad to see the Japanese brand get even smaller, or even die, in America, but at this rate, it needs new, exciting products more than ever before.
+2 others
