Mitsubishi is finally profitable in Europe image

The Japanese automaker ended a three years loss this fiscal year, which ended March 31, in the European region – even making the continental market its second most profitable business after the Asian region.

The European operations of Mitsubishi Motors made a profit thanks to foreign exchange swings, rising demand for its new Outlander plug-in hybrid and the cost savings from closing a Dutch factory. MME (Mitsubishi Motors Europe) earned an operating profit of 37 billion yen (261 million euros) in the fiscal year that just ended, compared to the year before, when it had losses of 7 billion yen.

“The full retail launch of Outlander PHEV in other markets from January onwards will translate into a gradual volume increase across Europe, adding substantial volume in the region and balancing this Dutch success,” the company said in a statement.

For the 2014 fiscal year, MME, which has 34 European markets and Russia, Ukraine and Kazakhstan, expects – despite Russia’s weakness – operating profit to grow 29% to 48 billion yen.

Mitsubishi forecasts its global sales would improve 13% this year, rising to 1,182,000 units, with the western European markets growing 28% to reach 142,000 units. On the other hand, sales in Russia, Ukraine and Kazakhstan are expected to drop 9% to 83,000 cars.

Via Automotive NEws Europe