In response to the escalating trade tensions and the recent implementation of tariffs by the Trump administration, Mitsubishi Motors has made the strategic decision to temporarily halt the shipment of its vehicles to dealerships across the United States. This proactive measure underscores the immediate and potentially disruptive impact of fluctuating governmental policies on the intricate logistics and meticulous inventory management of global automotive manufacturers.
Given that Mitsubishi's entire portfolio of vehicles offered in the American market consists solely of imported models, each vehicle arriving on US shores is now subject to a newly imposed tariff of 25 percent. While the Japanese automaker intends to maintain its export operations to the broader North American region, it has initiated a temporary suspension of deliveries to its network of 330 dealerships within the United States. This calculated move is aimed at mitigating, at least in the short term, the significant financial burden associated with these additional import costs. According to Jeremy Barnes, the Senior Director for Communications and Events at Mitsubishi North America, the vehicles destined for the US market will remain at various port facilities within the country pending further clarification and potential adjustments to the government's tariff policies. In a statement to Nikkei Asia, Barnes assured that the company currently possesses sufficient inventory levels within the US to adequately meet the ongoing demand from consumers, despite the temporary freeze on incoming shipments.
Data compiled by Cox Automotive indicates that, at the beginning of April, Mitsubishi maintained a vehicle supply equivalent to approximately 79 days at its US dealerships. This inventory level is notably higher than the prevailing industry average of around 70 days, providing the brand with a relative buffer during this period of uncertainty. For the time being, Mitsubishi is strategically relying on the possibility of a shift or reversal in the current tariff policy before its dealership stock begins to dwindle to concerning levels. Importantly, the company has not yet announced any adjustments to the pricing of its vehicles for American consumers, suggesting a hope that the tariff situation will be resolved without necessitating price increases that could potentially impact sales. Mitsubishi is not an isolated case in this regard, as several other prominent automotive manufacturers have reportedly undertaken similar precautionary measures. Luxury brands such as Aston Martin, Audi, Lotus, and Jaguar Land Rover have all temporarily suspended the importation of their vehicles into the United States, reflecting a broader industry concern over the trade climate. Furthermore, Nissan has reportedly ceased taking new orders for its Infiniti QX50 and QX55 models that are manufactured in Mexico, and Volvo is allegedly discontinuing its S90 sedan in the US market, further illustrating the far-reaching consequences of the trade disputes.
Despite the prevailing uncertainty surrounding international trade, Mitsubishi Motors reported a robust sales performance in the first quarter of 2025 within the North American region. The automaker successfully sold a total of 31,637 vehicles, representing a commendable 11 percent increase compared to the sales figures from the corresponding period in the previous year. The Outlander SUV continues to be the brand's top-selling model in the region, with 11,992 units sold in the first quarter of 2025. Interestingly, this figure represents a 13 percent decrease compared to the first quarter of 2024, suggesting a potential market adjustment or supply chain influence. The recently refreshed version of the Outlander SUV made its debut in the North American market in late February, with its plug-in hybrid variant achieving record-breaking monthly sales in March, indicating strong consumer interest in the electrified option. Notably, the discontinued Mirage subcompact car emerged as Mitsubishi's second-best seller during this period, with 7,301 units sold, highlighting the continued demand for affordable transportation despite its impending discontinuation. Following closely were the aging Outlander Sport SUV with 6,910 units sold and the Eclipse Cross SUV with 3,731 units sold, rounding out the brand's sales performance in the first quarter. This sales data suggests a complex interplay of market demand and strategic responses to the evolving trade landscape for Mitsubishi Motors in the United States.