Report Says Mitsubishi Will Phase out Pajero SUV

Mitsubishi Motors Corp. won’t develop a successor for its 33-year-old Pajero midsize SUV as it shifts focus to more fuel-efficient vehicles, according to The Nikkei, which cites no sources.

The current Pajero, known as the Montero in some markets, was launched nine years ago. Demand for the model has declined from a peak of more than 160,000 units in the 1990s to one-third that volume in fiscal 2014.

MMC will continue to build the current model to satisfy fans of the venerable vehicle, according to The Nikkei. But it says the company’s product development efforts will focus on smaller SUV/crossovers, such as the Outlander, along with more fuel-efficient cars and an array of plug-in hybrid and all-electric powertrains.

MMC’s midterm business plan also calls for fewer models. The company’s Lancer Evolution small sedan is going out of production in March, for example. The newspaper notes that MMC already has stopped developing its own luxury sedan and non-electric commercial mini-vehicles. The company now sources rebadged vehicles in those market segments from Nissan and Suzuki, respectively.