2005 Mitsubishi Endeavor

Mitsubishi wants customers to be drawn to it by vehicles such as its Endeavor sport-utility vehicle, not by breathless deals offered for them.

Mitsubishi -- the only Japanese automaker with an Illinois assembly plant -- has seen its U.S. sales fall from 345,111 units in 2002 to 256,810 last year. It's on track to sell only 164,300 vehicles here this year, with 11-month sales of 150,458 units.

What went wrong?

Mostly, the automaker got a major financial blow when it offered vehicles for zero percent interest, no money down and no payments for a year.

"The program resulted in 'artificial' sales because it attracted deadbeats who said, 'Wow, here's a chance to drive a new vehicle without paying for it!''' said auto analyst Gordon Wangers, president of California's Automotive Marketing Consultants.

Mitsubishi thus suffered huge losses in 2003 after getting stuck with loan defaults and a high rate of vehicle repossessions.

Finbarr O'Neill, who helped turn once-faltering Hyundai into a big success in America, has stepped in as Mitsubishi Motors North America chief executive officer. He's counting on a three-year plan to make Mitsubishi rebound to profitability by 2007 from an expected $1.1 billion loss this year.

To become leaner and profitable, Mitsubishi has closed a plant in Japan, trimmed employment at its Downstate Normal plant and cut back on unprofitable vehicle fleet sales, which accounted for an estimated 30 percent of U.S. sales.

"It's an especially difficult time for Mitsubishi because competitive aspects of the industry are crazy, with worldwide overcapacity and new products introduced at an incredible pace,'' said David Cole, chairman of Michigan's Center for Automotive Research. "I don't know anybody in this industry who feels relaxed right now.''

So why did O'Neill leave the relative comfort of Hyundai to take the risky Mitsubishi job?

"Because he can look like a real hero if he pulls things off at Mitsubishi, where there is nowhere to go but up,'' Cole said.

Products are the lifeblood of any automaker, and Mitsubishi plans within a year or so to introduce vehicles including a new pickup truck based on the redesigned Dodge Dakota, a sporty new station wagon and overdue sporty Eclipse coupe and convertible.

Mitsubishi does know how to hit home runs, even though it's not scoring heavily. For example, its compact, 276-horsepower Lancer Evolution MR sedan is a big hit with the young "fast and furious'' crowd.

Hyundai's 10-year/100,000-mile powertrain warranty brought lots of customers of all ages to that automaker. O'Neill thus has given all Mitsubishi's the same long warranty, which accompanies a five-year/60,000-miles warranty that covers nearly everything for Mitsubishi's six car and truck models. They're sold by 650 dealers, who currently are generally disgruntled.

"Hyundai had to start from the ground up in the 1980s by switching from marginal to solid vehicles, but Mitsubishi doesn't have that problem because its vehicles are good to begin with. If anything, they're overbuilt,'' Wangers said.

"Mitsubishi Motors' parent company in Japan is an industrial empire, involved with everything from electronics to ship building. Success of its car operation involves a lot of ego for the parent firm.''

Mitsubishi spokeswoman Janis Little said Mitsubishi Motors North America is "refocusing efforts on marketing, with an emphasis on sporty performance and style. We don't intend to compete directly with outfits such as Toyota and Honda. Our vehicles are for those who are young or young-at-heart -- who want something a little different, with more style and design features.''

On the other hand, Wangers said, Mitsubishi "doesn't have many media dollars to work with.''

Word-of-mouth thus is partly needed to help sell Mitsubishi vehicles, including the sporty-but-practical Endeavor. This sport-ute comes with front- or all-wheel drive in base LS, mid-range XLS and top-line Limited trim levels.

Base prices range from $25,399 to $33,199, and all versions are so well equipped that there are few options. Extras include a rear DVD system for the XLS and Limited and an antiskid system for the Limited.

Introduced early in 2003 as a 2004 model, the Endeavor got a fair amount of changes in mid-2004. Changes for 2005 thus are subtle.

For instance, the anti-lock brake system has been improved and horsepower of the 3.8-liter V-6 has been increased from 215 to 225. The engine is designed to produce most of its 255 pound-feet of torque at lower rpm levels and thus low- and mid-range acceleration are swift.

A four-speed automatic transmission with a manual shift feature provides seamless upshifts, but fuel economy is so-so at an estimated 17 mpg in the city and 22 on highways.

The Endeavor has a bold, controversial-looking front end and carlike unit body instead of traditional body-on-frame construction used by larger sport-utilities. Mitsubishi calls the Endeavor a "crossover'' vehicle -- one that combines attributes of a car and a sport-ute. It says the unibody structure has extensive reinforcement for additional passenger protection in a collision.

The Endeavor's all-independent suspension gives it a smooth, carlike ride. Steering is quick, although rather heavy at low speeds. The brake pedal has a long throw, but stopping distances are impressively short. The stiff chassis allows alert handling.

The Endeavor is long at 190.2 inches, and also pretty wide at 73.6 inches. That helps allow plenty of space for four tall adults -- or five if those in the back don't mind a little squeezing.

Large door openings, a moderate step-in height and big outside handles help make it easy to get in and out of the quiet, attractive interior, which has commendably large sound system and climate controls.

The large outside mirrors fold flat against front door glass to prevent damage in tight spots, and their size is needed to enhance rear visibility, which is hindered by thick roof pillars. A rear obstacle detection system would come in handy, but isn't offered. Neither are curtain side air bags, although the Endeavor has standard front torso side air bags.

The cargo area has a relatively high floor, but the large tailgate has a separate-opening glass window. The cargo area is large, and the split 60/40 rear seatbacks easily flip forward and fold flat to allow considerably more space for hauling things.

The Endeavor is distinctive enough that it won't be mistaken for a sport-ute from mainstream automakers such as Toyota, Honda, Ford or General Motors. It doesn't have the resale value of most rivals, but that might change if Mitsubishi gains momentum.

2005 MITSUBISHI ENDEAVOR

PRICES
$25,399-$33,199

LIKES
Roomy. Carlike. Smooth ride.

DISLIKES
Rather high cargo opening. No third seat. Lacks resale value of rivals.