The company will focus its business on Southeast Asia.

Mitsubishi will stop introducing new products to the European market as part of a business plan that will focus the brand's predominant future investments on Southeast Asia. Over the next three years, the automaker will aim to reduce costs and build towards sustainable growth as part of this reorganisation.

The decision will include not introducing the next-gen Outlander to Europe, according to Automotive News Europe. The crossover was supposed to arrive there in the second half of 2020, so the cancellation came at nearly the last minute.

Gallery: Mitsubishi Pajero Final Edition

Mitsubishi already has a strong presence in Southeast Asia, and the company believes that's where it can compete the best going forward. Future models in that region would focus on off-road-oriented products. The vehicles on the way there include a new Triton pickup, Xpander MPV, Pajero Sport, and two unnamed vehicles.

One off-roader that's not sticking around is the Pajero (gallery above). As part of the cost reductions of the new business plan, the company intends to stop manufacturing the SUV. The closure of the plant reportedly happens sometime in 2021. The existing version of the Pajero dates back to a debut in 2006.

To save money, Mitsubishi also wants to cooperate more with its partners at Nissan and Renault. This includes making use of their technology like for assisted driving and electric vehicle systems for future Mitsubishi vehicles.

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MITSUBISHI MOTORS Announces Its Mid-Term Business Plan, Small but Beautiful, to Achieve Cost Rationalization and Profitability Enhancement for Sustainable Growth
Tokyo, July 27, 2020 – MITSUBISHI MOTORS CORPORATION (MMC) today announced its three-year mid-term business plan (from fiscal 2020 to 2022), Small but Beautiful, to concentrate its management resources on its core regions and technologies. This plan focuses on cost rationalization and profitability enhancement to realize solid management foundation aiming at sustainable growth after the plan's three-year period.
 
The Small but Beautiful plan is based on structural reforms to significantly reduce fixed costs by production capacity optimization, the regional strategy as well as the product/technology strategies. Under this initiative, MMC will concentrate its management resources on the ASEAN region, where it is competitive. Also, MMC will expand its profitability by further enhancement of its unique, competitive-edge technologies such as PHEV, HEV and 4WD, also by introduction of cutting-edge models leveraging the Alliance partners' technologies. By integrating those technologies, MMC will launch environmentally friendly models that contribute to developing a society where people, cars, and nature can coexist in harmony.
 
"We will shift our strategy from all-round expansion to selection and concentration," said Takao Kato, representative executive officer and chief executive officer, MMC. "First of all, we will complete our structural reforms and further strengthen our competitive areas—ultimately to build a corporate structure that can surely generate profits during this mid-term period."
 
The main actions of this plan are as follows:
Reducing fixed costs by 20 percent or more compared to FY2019, and concentrating investment on core regions and technologies to enhance profitability
Focusing management resources on ASEAN, and increasing the market share there to more than 11 percent
Developing businesses in Africa, Oceania and South America as the second pillar following ASEAN
Strengthening eco-friendly model lineup such as of PHEV and EV by launching new models by FY2022, and introducing new models including SUV, pickup truck and MPV in ASEAN from FY2022 onwards
 
For more information about the Small but Beautiful mid-term plan, please access:
https://www.mitsubishi-motors.com/en/investors/corpmanage/plan.html