Why Did Mitsubishi Discontinue Sports Cars?

Mitsubishi was once a dominant force in the performance scene with iconic sports cars like the Galant VR-4 and the Eclipse, which left indelible marks on motorsport and pop culture. Beyond those two legends and 10 generations of the rally-bred Lancer Evolution, Mitsubishi's fast car heritage included gems like the 3000GT, the Starion, and the surprisingly affordable FTO GPX. Each of these sports cars made a huge impact and cultivated a passionate global fanbase with their advanced engineering and thrilling driving dynamics.

However, Mitsubishi's sports car legacy faded into history as the brand gradually shifted its focus. The once-beloved Eclipse now lives on only in memories, although its nameplate was repurposed for a crossover SUV. The rest of the brand's sports cars gradually disappeared during the 2010s. But, what happened? Why did Mitsubishi discontinue its sports car lineup? It certainly wasn't for lack of interest. Mitsubishi's decision to discontinue sports cars was influenced by shifting market trends, economic pressures, and evolving brand priorities.

Mitsubishi throttled back on sports car production to concentrate on SUVs, crossovers, and hybrid vehicles. Rob Lindley, Managing Director of Mitsubishi UK, shed light on this shift, telling Car Throttle, "Mitsubishi has moved around different brand positionings, whether it's been spacestar-style vehicle or sports car derivatives. It's not had that clarity of focus." The brand now concentrates mainly on SUVs.

By the mid-2010s, SUVs and crossovers had become the fastest-growing automotive segments globally. Recognizing the profitability of high-volume SUV production, the brand phased out its sports cars. After a 23-year run, Mitsubishi discontinued the Eclipse in 2012, bidding farewell with a special edition that featured unique badging and a 3.8-liter V6. The brand then doubled down on its strategy, retiring the Lancer Evolution in 2015. This version was honored with a final limited-edition model, the 303-horsepower Lancer Evolution FE. 

The Lancer met the same fate in 2017, leaving the brand's lineup devoid of traditional sports cars. Larger automakers such as Ford adopted similar strategies. In 2018, the brand halted sedan and non-truck production in the United States, retaining only the iconic Mustang as a nod to its performance heritage. Mitsubishi leaned on its success in rally racing, channeling that legacy and technology into vehicles like the Mitsubishi Outlander to establish itself as a reliable SUV producer.

One of the most important factors behind Mitsubishi's decision to discontinue sports cars was a change in buyer preferences. The first notable shift was in 2004 when sedans and wagons — which accounted for more than half of U.S. vehicles made from 1975 through 2000 — saw a drop in production of more than 50%. This decline was driven by the growing popularity of larger vehicles. By 2017, SUVs, trucks, and minivans dominated the market and accounted for over half of new vehicle production. This trend was particularly strong in North America and Asia, where these utilitarian vehicles suited a wide range of lifestyles and needs.

As demand for sedans and sports cars dwindled, Mitsubishi's once-iconic models like the Lancer and the Eclipse found themselves catering to an increasingly niche audience. While these sports cars had a passionate fanbase, they failed to compete in a market that prioritized practicality. Attempting to cater to this shrinking sports car segment while pursuing other areas and categories would have stretched the company's resources thin.

Interestingly, Mitsubishi's rivals like Toyota and Honda managed to stay in the sports car game with models like the GR Supra and Civic Type R. However, these brands survived because they already had large production capacities. This made it easier for them to sustain their sports car lines alongside high-volume models. For Mitsubishi, shifting to SUVs allowed the company to exploit that more profitable segment.

According to Lindley, Mitsubishi's global sales volume is relatively modest at around 1.2 million vehicles annually. This smaller scale limits the brand's ability to compete in every automotive segment, particularly limited markets like sports cars. Producing these high-performance models typically requires a huge investment to cover everything from research and development to engineering and materials. At a lower sales volume, the return on this investment often fails to justify the cost. Mitsubishi leadership acknowledged that focusing resources on high-demand segments like SUVs and hybrids was a more sustainable approach. The company was also dealing with the 2008 financial crisis and an earlier public relations disaster. 

During the first half of fiscal 2008, Mitsubishi Motors' global sales dropped to 602,000 vehicles, a 13% decline from the previous year. Mitsubishi also faced a fuel efficiency scandal in 2000, when it admitted to concealing vehicle defect reports for more than 20 years. This revelation led to a sales drop of nearly 50%, which pushed the automaker to the brink of bankruptcy. The scandal also cast doubt on the fuel ratings of other Mitsubishi vehicles, along with the brand's reputation. With these challenges, it makes sense that Mitsubishi had little choice but to streamline its lineup to rebuild its financial health and secure a more stable future.