Mitsubishi Autoplex to Close; Automaker is Blamed

from Arizona Daily Star, June 6, 2005
By Lynda Edwards

Mitsubishi Autoplex, 3701 W Orange Grove Road, is closing Friday, and in an unusual press statement the dealership's chief operating officer is blaming Mitsubishi. Jerry Lauer said sister company O'Rielly Mitsubishi, at 5200 E. Speedway, will stay open as Tucson's sole Mitsubishi dealership.

"The severe decline in the perception of the Mitsubishi brand over the past several years and continuing changes at every level has made it difficult to sustain both dealerships," Lauer said in a press release. "We believe in the quality of the brand and the quality of the product."

But he faulted Mitsubishi for a "lack of advertising support."

Lauer was able to find jobs for all but 10 of the 45 Autoplex employees by transferring them to the two other Tucson dealerships the O'Rielly family owns, he said. In an interview, Lauer said blaming Mitsubishi isn't impolitic.

"It's just the truth," he said. "Most manufacturers are pretty focused on creating brand awareness. Mitsubishi may no longer have the budget to spend a lot on ads. And it hurts us."

The company is still salvaging customer trust. Five years ago, Mitsubishi President Yoichiro Okazaki announced that an internal investigation documented that company officials concealed company vehicle defects to avoid recalls.

So far this year, Mitsubishi sales are down 37 percent compared to the first five months of last year. The Mitsubishi Autoplex dealership posted a 45 percent drop in sales for the first four months of 2005, compared to the same period last year, Lauer said.

"The question for Mitsubishi is, can a great ad campaign create a trend for a brand?" said Michael Bolchalk, who runs a local ad agency and is a recent inductee of Tucson's Advertising Hall of Fame.

He cited Abercrombie & Fitch as one brand whose turnaround was attributed to a brilliant ad campaign. The clothier's share of the market was shrinking primarily because people thought of it as a stodgy, Middle American brand, Bolchalk noted.

Now, its ad campaigns featuring semi-nude models, and holiday catalogs with Dirty Scrabble, Strip Yahtzee and Naked Twister have sent sales soaring - despite boycotts, he said.

Lauer is placing his hopes on Mitsubishi's new sports car, the Eclipse. Mitsubishi Motors North America launched a new national advertising campaign last month featuring prime time ads for hit shows like ABC's "Alias" and "Lost" for the 2006 Eclipse.

Mitsubishi allotted Lauer four Eclipses. He said all four sold immediately. And he wants more.