End of an era as Mitsubishi pulls out of UK and EU markets

Cirencester-based Mitsubishi Motors will become an after-sales only business, following Mitsubishi Motors Corporation’s shock announcement last July that it was pulling out of the UK and European car markets.

Last summer, Mitsubishi Motors Corporation announced it was freezing the introduction of new vehicles in Europe, including the UK. The automotive manufacturer, a member of the auto alliance of Nissan Motor and Renault SA, said that it had no choice but to reduce its fixed costs by 20 per cent and focus on investment in core markets where it sees potential.

Mitsubishi cars have been imported into the UK by the Cirencester-based Colt Car Company since 1974. The company, which had no prior inkling of the announcement, had been turning over more than £500 million annually and employed around 350 people. For years it was one of Cirencester’s biggest employers. In November, the company put its headquarters, built on a six-acre plot on the edge of the town, on the market for £12 million.

The Colt Car Company was originally formed as a joint venture company owned 51 per cent by a consortium (Colt Automotive Ltd), and 49 per cent by Mitsubishi Motors Corporation. The chairman and chief executive was Michael Orr, who had worked for Alfa Romeo and then BMW as National Sales Manager. While on a fact-finding trip to Japan he was asked to take on the import of Mitsubishi Cars.

For the first few years, Mitsubishi were sold in the UK under the “Colt” marque until rebranding to Mitsubishi, which then brought the marque in line with the rest of the world. It remained a 51/49 joint venture between Colt Automotive Ltd and Mitsubishi Motors Corporation until 2008. Since then it has been a wholly owned subsidiary of MC Automobile (Europe) NV (MCAE).

In April Mitsubishi auctioned off its UK heritage fleet in a specialist online auction.