Ghosn endorses MMAL direction

By Neil Dowling on 5th October 2017 Free Access Articles, Market Reports Alliance, Ghosn, MMAL, Signoriello

John Signoriello

MITSUBISHI Motors Australia Limited (MMAL) is two weeks away from announcing the role it will play within the global Renault-Nissan-Mitsubishi Alliance; a role that will set in motion a new product roster as well as “synergies” that will boost dealer efficiencies and improve aftersales service.

The October 18 announcement is expected to clarify the platform-sharing program instigated by Alliance chairman and CEO Carlos Ghosn who outlined the message for the Australian operations in a face-to-face meeting with new MMAL CEO John Signoriello.

At a media event in Darwin last week, Mr Signoriello told GoAutoNews Premium that Mr Ghosn was happy with Mitsubishi’s performance.

He said Mr Ghosn recognised that within the Oceania region, Mitsubishi was more likely than Nissan and Renault to outperform the market share it achieves compared with other global markets.

Mr Signoriello was alluding to previous public criticism by Mr Ghosn of Nissan and Renault’s performance in Australia in which he said he could not understand why the two brands did not achieve similar market share here to that of other mainstream markets.

The comments were followed shortly after by the departure of Nissan Australia managing director and CEO Richard Emery and Renault Australia managing director Justin Hocevar.

Carlos Ghosn

However, Mr Signoriello said Mr Ghosn liked the direction MMAL was taking.

“He was actually comfortable with our strategy and where we are heading; the growth we have and what we plan,” Mr Signoriello said.

“There have been no changes to our plan (since he met with Mr Ghosn). He was very positive about the network of dealers in Australia and encouraged us to explore other opportunities – in things like distribution and dealership development – in the Alliance.

“The opportunity for us now is in the back end of the business. The (sharing of) platforms are for longer term opportunities where the Alliance will play its role, whereas the back-end opportunities are short term.”

Mr Signoriello said that among the first of these initiatives will be the sharing of a new warehouse at Truganina in Melbourne’s west that becomes effective in January 2018.

It places Mitsubishi, Nissan, Infiniti and Renault parts in one centre and, in Mitsubishi’s case, the establishment of parts hubs that will supply dealers and repair centres with fast-moving items with less delay.

“These (economies) are things like the warehouse in Melbourne. Mr Ghosn explained the importance of scale. That won’t happen overnight but we have a clear plan.”

Mr Signoriello said he has had discussions with his Nissan counterpart in Australia regarding back-end opportunities and synergies with logistics.

“We are setting up forward stocking locations in Queensland and NSW for high-volume parts,” Mr Signoriello said.

Mitsubishi Eclipse

“I would like to think that the network will get some efficiency improvements out of the Alliance warehouse in Melbourne and then the high-moving stock through these hubs which are basically little warehouses.

“When it comes to back-end opportunities and synergies with logistics then we have discussions with Nissan.

“But at the front end, at the sales and marketing levels, we are two separate companies. We compete so I respect what they (Nissan) have to do and the products they have and I’m sure that that is mutual.

“We are competitors and that has been made clear by Mr Ghosn.

“That does not affect the much publicised move to platform sharing and there will be more of that in future announcements, including cases such as the electric vehicles made by Nissan and Mitsubishi.”

The commitment to electric vehicles has been extended with Mitsubishi building a charge station in Adelaide paid for by the company.

“We are currently working with Flinders University in Adelaide and we will work with any corporate or government authority to promote electric vehicles,” Mr Signoriello said.

“We know it’s going to take time and we also know we are at the forefront. We encourage other organisations to take the opportunity to expand the EV network.

“We have a network of dealers and that also gives us an opportunity to promote EVs and perhaps fit a charge station at each dealer.”

Mr Signoriello said the Mitsubishi had a “very mature network of dealers in Australia”.
“Some of them have been with us for a very long time.”

“Our dealers are supportive of us and we support them so we work well together. They have recently been to Japan to see future product, including the (forthcoming SUV) Eclipse Cross.”