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A frugal four-cylinder engine is being considered for the Mitsubishi 380. Mitsubishi Australia has confirmed it is considering a plan to fit the 380 with a smaller engine by 2008.

The 380 is currently only available with a 3.8-litre V6. A four-cylinder would not only increase the sales of 380s to fleet buyers worried about fuel prices in Australia, but would also be a core part of a plan to export significant numbers of 380s to parts of Asia where motorists pay less tax for cars with smaller engines.

Mitsubishi is pushing ahead with plans to export the 380 to Malaysia, either as complete cars or in parts for assembly in Malaysia by Proton. Back at home, Mitsubishi has slashed 380 prices to give the large car a chance against its rivals.

It launched the car last October with a starting price of $34,490, but dropped the price of the base car to $27,990 last week.

There are similar savings across the range. Mitsubishi president Rob McEniry had promised he would not cut 380 prices to boost sales, but performed a backflip last week when announcing the price cuts.

McEniry also announced the company would wind back production again at its Tonsley Park plant, reducing its daily production to just 75 cars and shedding another 30 jobs. He admits the 380 will fall well short of its launch target of 32,500 sales a year and is likely to sell between 15,000 and 20,000 a year.

"After many years of selling about 25,000 cars a year, Mitsubishi's volume dropped with the introduction of the TL Magna to about 15,000 units and has stayed in that general vicinity. Nothing has moved it, not the $26,990 pricing on the old Magna, not launching the new 380," McEniry says. "Last December we were thinking, in fact hoping, that the market conditions suppressing 380 would be relatively short-lived and that by March we would be back on track. But that is not going to happen."

McEniry says the new pricing structure, which follows a limited edition 380 launched at the Melbourne Motor Show in February, is here for the long term.



He says the four-cylinder 380 could help, if approved, but not straight away.
"It is under consideration, but it would be a two-year program. It is not going to solve our problems this year, so we have to manage what we have got."

Mitsubishi says it will give 380 customers, who bought their cars before the prices were cut, cashback offers including between $1000 to $2000 and limited free servicing, depending on the model and price paid.

http://carsguide.news.com.au/story/0...-21822,00.html