The History of Mitsubishi

Of all the complex and intertwined histories within the global automotive industry, few are as storied, multifaceted, and ultimately resilient as that of Mitsubishi. For American consumers, the name often conjures images of rugged, all-wheel-drive rally legends or dependable, value-packed sedans. Yet, the story of Mitsubishi is not just one of cars; it is a sprawling epic that began in the mists of the Meiji Restoration, grew into a colossal industrial conglomerate known as a keiretsu, weathered devastating wars and corporate scandals, and ultimately forged a new path through strategic alliances. This is the story of Mitsubishi, from its samurai roots to its modern-day place in the global automotive landscape.

The Seeds of an Empire: The Founder’s Vision

The origins of the Mitsubishi empire are inextricably linked to the life of one man: Iwasaki Yataro. Born in 1835 into a fallen samurai family in the Tosa domain (modern-day Kochi Prefecture, Japan), Yataro was a man of immense ambition and acumen. Following the collapse of the Tokugawa shogunate and the restoration of imperial rule in 1868, Japan was undergoing a period of rapid modernization. Yataro, with a government-backed loan of 15,000 yen, recognized a golden opportunity in the nation’s burgeoning shipping needs.

In 1870, he established Mitsubishi’s corporate predecessor, Tsukumo Shokai, a shipping firm with just three steamships. The name “Mitsubishi,” which translates to “Three Diamonds,” was adopted in 1875. This iconic logo, still in use today, was formed by combining two water chestnuts, or kashiwa, which his family had used as a crest. Yataro’s business philosophy was fierce and uncompromising. He fought tooth and nail against the government-subsidized shipping giant, the Japan Mail Steamship Company (later NYK Line), eventually carving out a dominant position for his fledgling company.

But Yataro’s vision extended far beyond shipping. He understood the principle of vertical integration, and over the next two decades, he diversified the Mitsubishi empire into a vast array of industries, including coal mining (to fuel his ships), shipbuilding, insurance, warehousing, and paper manufacturing. By the time of his death in 1885, he had laid the foundation for one of Japan’s most powerful industrial groups, or zaibatsu. His brother-in-law, Yanosuke Iwasaki, took over and further expanded the empire, and it was under his leadership that the Mitsubishi Mechanical Works was established in Nagasaki in 1884, the precursor to the company’s manufacturing and engineering prowess.

From Shipbuilding to the Open Road: The First Vehicles

Mitsubishi’s involvement in the automotive industry was a natural evolution from its expertise in heavy engineering. The company began by producing engines and other components for other manufacturers. Its first foray into整车 (complete) vehicle production came in 1917, with the Mitsubishi Model A. This luxury sedan, heavily inspired by the Italian Fiat 510, was hand-built and exceedingly expensive. Only 22 units were produced between 1917 and 1922, making it a commercial failure, but it stands as a historically significant milestone: it was the first series-production Japanese car.

The company’s automotive ambitions were put on hold during the tumultuous period leading up to and through World War II, during which its factories were dedicated to producing military hardware, including the iconic “Zero” fighter plane engine. After the war, with Japan’s industrial base in ruins, Mitsubishi Heavy Industries was broken up by Allied occupying forces. This was a significant hardship. The company split into three regional entities: West Japan Heavy Industries, Central Japan Heavy Industries, and East Japan Heavy Industries. It wasn’t until 1964 that these three companies would merge back together to reform Mitsubishi Heavy Industries.

However, the post-war period also saw the birth of the company’s true automotive division. In 1960, Mitsubishi Heavy Industries launched the Mitsubishi 500, a small, rear-engine, 4-door sedan designed to be Japan’s answer to the VW Beetle. This was the first Mitsubishi car to gain significant traction with the public. This was followed by a series of compact cars and, in 1962, the company released its first true masterpiece of engineering: the Mitsubishi Debonair. A luxury sedan intended for high-ranking executives, it featured a 2.6-liter V8 engine, an unheard-of feature in a Japanese car at the time, and was lavishly appointed.

Forging an Identity: Motorsports and Global Ambitions

By the 1970s, Mitsubishi was ready to compete on the world stage. In 1970, the company established a formal motorsports division, a move that would define its brand identity for decades to come. The first major campaign was in the grueling East African Safari Rally. The company entered the Galant, a new compact sedan, and after a few years of learning, scored a crucial class victory in 1973. This success was a springboard for greater things.

The 1970s and 80s also saw Mitsubishi make its first major entry into the North American market, initially exporting the Galant Sigma under the “Dodge” and “Plymouth” brands. But it was in 1982 that Mitsubishi officially began selling vehicles in the U.S. under its own name, with the compact Tredia and the space-efficient Cordia.

This era was also marked by a significant hardship that threatened to derail the company’s American dream. In the early 1980s, the U.S. government, led by the Reagan administration, implemented “voluntary export restraints” on Japanese automakers to protect the struggling American auto industry. This restricted the number of cars Japanese companies could sell in the U.S. Mitsubishi, being a new entrant, was allocated a very small quota. To overcome this, Mitsubishi struck a landmark deal in 1985 with the struggling American Motors Corporation (AMC). Mitsubishi would supply AMC with a family of vehicles that AMC would sell as the Eagle Premier and Eagle Summit. This deal was a lifeline for both companies; it gave Mitsubishi a vital sales outlet and access to the U.S. market beyond its small quota, while it provided AMC with a modern, world-class product to keep it afloat before its eventual acquisition by Chrysler. This arrangement helped Mitsubishi build brand recognition and a dealer network in the U.S.

Throughout the 1980s and 90s, Mitsubishi’s reputation for engineering excellence was cemented through its motorsports program. The rally-bred Mitsubishi Lancer Evolution, first released in 1992, became a legend. With its powerful turbocharged engine and advanced all-wheel-drive system, it dominated the World Rally Championship (WRC), securing four consecutive manufacturers’ titles from 1996 to 1999, with legendary drivers like Tommi Mäkinen behind the wheel. This rally pedigree created a halo effect, boosting sales of the entire lineup and attracting a cult-like following, especially in the U.S., where the Lancer Evolution would eventually be sold to immense acclaim.

Mitsubishi also found success in other racing series, most notably the Dakar Rally, where its Pajero / Montero SUV won the grueling event 12 times between 1985 and 2001, a record for any manufacturer in that category.

The Diamond That Lost Its Luster: Crisis and Scandal

Despite its engineering triumphs and racing glory, the late 1990s and 2000s brought a series of devastating crises that threatened the very existence of the company.

The first major scandal erupted in 2000, when it was revealed that Mitsubishi Motors had engaged in a massive cover-up of vehicle defects for decades. The company had a formal policy of ignoring known safety issues, from faulty clutches and defective brakes to problematic steering columns. An internal report later confirmed that this practice had been going on for over 30 years. The fallout was immense. The company was forced into a series of massive vehicle recalls, its reputation was shattered, and it faced crippling fines and legal battles.

Just as the company was beginning to recover from the safety scandal, another financial bombshell hit. In 2004, it was revealed that Mitsubishi Motors had been cooking its books, inflating its profits by concealing billions of yen in losses and hiding liabilities. This accounting fraud was designed to present a facade of financial health. The revelation caused the company’s stock to plummet. The parent companies, Mitsubishi Heavy Industries and Mitsubishi Corporation, were forced to orchestrate a massive bailout, injecting over $5 billion to keep the car automaker from going bankrupt. The company slashed thousands of jobs and closed factories in a desperate bid to survive. This period, from roughly 2000 to 2005, was the darkest in Mitsubishi’s automotive history, a period of profound struggle where the very survival of the company hung in the balance.

A New Era of Alliances: From Isolation to Partnership

The financial near-death experience forced Mitsubishi to reconsider its strategy of operating as an independent giant. The new CEO, Osamu Masuko, steered the company toward a new path of collaboration. This began in 2009 with a small alliance with Nissan to develop a new small car. However, the game changed in 2016 when Mitsubishi became embroiled in its own fuel economy scandal, this time related to improperly inflated mileage figures for its eK Wagon and eK Custom kei cars in Japan. This scandal further damaged consumer trust and highlighted the company’s precarious financial position.

This crisis became the catalyst for the most significant corporate move in decades. Seeking financial stability and technological sharing, Mitsubishi Motors was brought into the Renault-Nissan alliance in 2016. Nissan, under the leadership of Carlos Ghosn, acquired a controlling 34% stake in Mitsubishi, effectively rescuing the company from its latest crisis. This merger, forming one of the largest automotive alliances in the world, was a strategic move to pool resources, share platforms, and achieve massive economies of scale, allowing Mitsubishi to compete in an era of electrification and autonomous driving. Today, the company operates as a key member of the Renault-Nissan-Mitsubishi Alliance, working on common platforms like the CMF (Common Module Family) architecture.

What Makes Mitsubishi Different?

Historically, Mitsubishi’s key differentiator was its “all-wheel drive for all” philosophy, derived directly from its motorsports program. While other brands offered All-Wheel Drive (AWD) as a niche, high-cost option, Mitsubishi made its advanced AWD systems, like the interactive “Active Yaw Control” (AYC), a core feature across its lineup, even in affordable sedans like the Lancer. This gave its vehicles a level of sure-footedness and all-weather capability that was unique in its class. Furthermore, Mitsubishi’s extensive experience in engine and drivetrain engineering (as part of the Mitsubishi Heavy Industries conglomerate) gave it an in-house advantage in developing complex mechanical systems.

Currently, Mitsubishi has differentiated itself by pivoting heavily toward the plug-in hybrid (PHEV) market. The company was one of the first to market with a mainstream PHEV SUV, the Outlander PHEV, which for years held the title of the world’s best-selling PHEV. This strategic focus allows it to occupy a specific niche in the alliance’s broader portfolio, complementing Nissan’s focus on pure EVs (like the Nissan Leaf) and Renault‘s diverse European offerings.

Factory Operations and U.S. Reception

Mitsubishi’s global manufacturing footprint is a mix of domestic and international plants. The iconic Nagasaki plant, a direct descendant of the Meiji-era shipyards, has been producing cars since 1917. Its primary U.S. manufacturing presence was the Mitsubishi Motors Manufacturing Corporation (MMC) plant in Normal, Illinois. Opened in 1988, this plant initially produced the Mitsubishi Eclipse, a sporty coupe that became a cultural icon of the 90s. However, following years of declining sales and financial struggles, the plant was sold in 2016 and now operates as Mitsubishi Motors North America’s sole parts distribution center for the U.S. market. Today, all Mitsubishi vehicles sold in the U.S. are imported from Japan and Thailand.

The U.S. consumer reception of Mitsubishi has been a rollercoaster. In the 1980s and 90s, it was seen as a maker of innovative and reliable cars. The Eclipse and later the Lancer Evolution were hugely popular with enthusiasts. In the 2000s, amidst the scandals, its reputation for quality and safety took a major hit, and sales plummeted. In its modern era (post-2010), Mitsubishi has repositioned itself in the U.S. market as a value-oriented brand. Its primary selling points are its industry-leading 10-year/100,000-mile powertrain warranty and competitive pricing. While it no longer has the enthusiast following it once did, it has found a stable customer base among budget-conscious buyers looking for a dependable vehicle with great warranty coverage. Its current U.S. lineup consists almost entirely of SUVs: the Outlander, Outlander Sport, and Mitsubishi Cross.

Sales, Models, and The All-Time Bestseller

• First Vehicle Model: The Mitsubishi Model A (1917-1922). Production: 22 units.
• Latest Vehicle Model (as of 2024): The 2024 Mitsubishi Outlander (third generation, refreshed). In the U.S., the Outlander has been a consistent seller, with sales figures hovering around 25,000-35,000 units annually in recent years.
• Global Sales: Mitsubishi Motors sold approximately 780,000 vehicles globally in the 2022 fiscal year. (Note: The company does not always break down sales by model for global figures, but the Outlander and its smaller sibling, the Outlander Sport, are its global volume leaders).

The Single Most Popular Vehicle: The Mitsubishi Outlander

Without question, the current-generation Mitsubishi Outlander is the company’s most important and popular vehicle in the United States. Its success can be attributed to a winning formula: it offers three-row seating, standard all-wheel drive, a stylish design that punches above its price point, and the brand’s signature warranty, all for a starting price that significantly undercuts competitors like the Honda CR-V or Toyota RAV4. It successfully occupies the “value” niche in the fiercely competitive compact SUV segment.

While the Outlander is the current champion, the historical sales crown belongs to the Mitsubishi Eclipse. This sporty coupe was a runaway success in the 1990s and early 2000s, becoming an icon of its era, thanks in no small part to its starring role in The Fast and the Furious. During its peak, the Eclipse sold over 50,000 units a year in the U.S., making it Mitsubishi’s best-seller and a cultural phenomenon. The Lancer Evolution, while not a volume seller, achieved a legendary status that made it arguably the brand’s most influential model.

Current Status and Outlook

Mitsubishi Motors is very much still in business. Its current status is as a stable, though smaller, global automaker and a crucial part of the Renault-Nissan-Mitsubishi Alliance. The alliance provides the scale and shared technology necessary to navigate the immense costs of developing electric and autonomous vehicles.

The outlook for the company is one of cautious optimism under the new leadership of CEO Takashi Kato, who took over in 2021. The company has outlined a mid-term plan that focuses on rationalizing its global lineup, focusing on its strongholds in Southeast Asia and Oceania, and leveraging the alliance’s “leader-follower” strategy, where each company takes the lead in developing specific vehicle segments and technologies for the group. For the U.S. market, the plan is to refresh its small SUV lineup and introduce a new, more advanced plug-in hybrid system.

Mitsubishi’s journey is a testament to the resilience of Japanese corporate culture. From the vision of a single samurai entrepreneur, it grew into a giant of industry, faced the abyss of scandal and near-collapse, and is now charting a new course as part of a global family. For American drivers, the three diamonds on the grille still represent a vehicle with a unique history of engineering prowess and a value proposition that has allowed it to endure.