Tariffs Sink Mitsubishi, But Fleet Sales Could Keep It Afloat

Tariffs and Falling Demand Hit Mitsubishi Hard

Mitsubishi Motors is turning to fleet sales to recover from steep losses in the latest quarter, as U.S. auto tariffs and global demand declines weigh heavily on results. The Japanese automaker’s operating profit plummeted 79 percent to $78.7 million for the July–September period, while net income swung to a $66.6 million loss, down from a $57.2 million profit last year.

Tariff-related expenses totaled ¥13.3 billion ($89.4 million), while sliding retail sales across North America, Europe, and Southeast Asia slashed another $98.9 million from profits. Mitsubishi’s U.S. sales were among the hardest hit, hurt by higher import costs and slower dealer movement.

Fleet Sales Strategy to Regain Ground

Mitsubishi is reportedly in the final stages of negotiations with major U.S.-based rental car companies. Executive Vice President Tatsuo Nakamura said the automaker will ramp up fleet and company car deliveries through the end of the fiscal year in an effort to recover lost volume.

He noted that the weaker Japanese yen now allows exports to the U.S. to remain profitable even with the current duty rate, which was reduced to 15 percent from the previous 27.5 percent following the recent trade deal. Even at this lowered rate, the six Japanese manufacturers present in the country, namely Mitsubishi, Honda, Nissan, Toyota, Mazda, and Suzuki have collectively accrued billions of dollars in tariffs so far. 

Hybrid Models Offer a Glimmer of Hope

Despite the tough quarter, Mitsubishi kept its full-year profit outlook unchanged, forecasting operating profit to fall 50 percent to $470.7 million and net income to drop 76 percent to $67.2 million. The company expects global vehicle sales of 843,000 units through March 31, 2026, with North American sales projected to decline 8 percent to 172,000 units.

A key part of the manufacturer’s recovery strategy is the new Outlander mild-hybrid, set to debut in the U.S. by year’s end. The model, already available in Canada, replaces the current 2.5-liter motor with a 1.5-liter turbocharged mild-hybrid powertrain.

Currency and Tariffs Continue to Pressure Profits

Currency fluctuations erased another $117.7 million in operating profit last quarter, as the yen strengthened against the U.S. dollar and other currencies. Even so, Mitsubishi believes expanding its U.S. fleet sales and new hybrid offerings could help stabilize earnings heading into 2026.