Mitsubishi May Raise Prices in the U.S. Due to Trump’s Tariffs
The Japanese automaker Mitsubishi has been hit by new import tariffs introduced by the Donald Trump administration. The company, which does not have its own production in North America, expects additional costs of about $344 million. To compensate for the losses, Mitsubishi is considering raising prices for its cars in the U.S.
As sources report, the company plans to reduce costs by $140 million by cutting marketing programs and increasing prices on models. The exact size of the increase is not yet known, but it could reach up to $2,000, as is the case with some Ford models.
Potential Resumption of Production in the USA
In addition to raising prices, Mitsubishi is exploring the possibility of resuming production in North America. Instead of building a new plant, the company could use the capacity of its partner Nissan, with which it is in an alliance. This would avoid significant investments and increase the utilization of Nissan’s plants.
“Local production will be extremely important in the future,” said Mitsubishi’s head, Takao Kato.
A decision on the specific plant and models that will be produced in the U.S. has not yet been made. However, such a step could become a profitable deal for both companies.
The tariff situation is affecting not only the American market. Mitsubishi expects a drop in global demand due to trade restrictions, which could lead to a decrease in operating profit by $270 million in the current financial year. This creates additional pressure on the company, forcing it to seek new ways to optimize costs.