Forward Industries: Mitsubishi Motors Raises U.S. Vehicle Prices Amid Tariff Pressures
- Mitsubishi Motors raises U.S. vehicle prices by 2.1% due to rising costs and tariffs on imports.
- Despite price increases, Mitsubishi's U.S. sales rose by 11% in Q1 2025, maintaining customer goodwill.
- Mitsubishi invests in new vehicles and technologies, including electric models and a joint project with Nissan.
Mitsubishi Motors Adjusts U.S. Vehicle Prices Amid Rising Costs
Mitsubishi Motors announces a 2.1% increase in the prices of its U.S. vehicles, effective Wednesday. This decision comes in response to escalating costs attributed to the 25% tariffs imposed on car imports from Japan and other countries under the previous administration. The price adjustment reflects Mitsubishi's ongoing evaluation of its pricing strategy in light of these external economic pressures. Notably, the company had previously suspended deliveries from ports to U.S. dealers due to the tariffs, but it resumed these operations just last week, indicating a shift back towards normalcy in its supply chain.
Despite the recent price hike, Mitsubishi reports a robust performance in U.S. sales, which rose by 11% in the first quarter of 2025. This follows a successful 2024, during which the company sold 110,000 vehicles, marking a 26% increase and the highest sales figures since 2019. The company emphasizes that the new pricing will not affect vehicles already in showrooms, illustrating its commitment to maintaining customer goodwill amidst rising operational costs. Such strategic pricing moves are crucial as the automotive industry contends with inflationary pressures and shifting consumer demand.
In addition to addressing pricing, Mitsubishi is investing significantly in new vehicles and technologies. The company plans updates to its 2025 Outlander and is developing a new battery electric vehicle specifically for the U.S. market. Additionally, Mitsubishi is engaged in a joint project with Nissan to produce a new vehicle domestically in the coming years, showcasing its commitment to innovation and adaptation in a competitive market. This proactive approach not only aims to enhance Mitsubishi's product lineup but also seeks to solidify its position in an evolving automotive landscape.
In a broader context, Mitsubishi's price adjustments align with similar strategies undertaken by other automakers facing the same tariff-related challenges. Subaru, for example, has raised prices on various models by up to $2,055, while Ford has increased prices on certain models by as much as $2,000. As the auto industry navigates these complexities, any further increases in tariffs, as hinted by President Trump, could compel manufacturers to revisit their pricing strategies yet again, underscoring the volatility of the current automotive market.
