There's a real sense of frustration in Mitsubishi's European ranks. Just as its turnaround plan was coming to fruition and amid strong positive media comments about its new Colt, its partner and shareholder DaimlerChrysler (DC) withdraws financial support for the parent firm, sending the company into a tailspin which it has just about managed to control. Michael McAleer, Motoring Editor, reports.
A particular blow was the departure of chief designer Oliver Boulay - having laid out a design strategy for the firm he has now returned to DC as head of its Japanese Advanced design studio.
Ironically, the Europeans had been performing relatively well in the world's toughest car markets. It was bad decisions and strategies in the US, along with mistakes at home in Japan that put the company in trouble.
From now on DC and Mitsubishi are merely working together through joint ventures, with production of the Smart forfour and Colt at Mitsubishi's Nedcar plant in Born in the Netherlands.
All this is even more unfortunate when you consider the new Colt was the first fruit of the DC-Mitsubishi joint venture. It shares its platform and powertrain with DC's Smart forfour - comparing the two you get the impression that the Japanese got the better deal.
The new Colt, which goes on sale in Ireland this week starting at €14,995 is the best thing to come from the group in an age. So good in fact, you'd have to question the wisdom of retaining the old name for what is a very different car.
Even within the range, the decision to use the Colt name on both the five-door and three-door versions seems like a mistake. They are two very different cars.
Both feature the striking new front, but at the rear the five-door is conservative while the three-door is every inch sporty and eyecatching. That can rarely be said about Japanese small cars.
The engine line-up for both begins with a 1.1-litre and 1.3-litre petrol, both from a new German plant built as a joint-venture with DC when things were sweet.
We've driven both engines and were really surprised at the ability of the smaller one to cope, not just nipping around towns but on the motorways too. Despite its size, the car feels solid on the road, well-built and with confident positive handling.
In September, the 1.5-litre turbodiesel will arrive here with a three-cylinder common-rail unit offering 95 bhp. This engine was built by DC in Germany.
We also had the opportunity to drive this recently. Though it will not be a huge seller given the relatively low mileage of small car owners, it's in keeping with the positive nature of the Colt.
Inside, the new Colt is roomy. Styling is quite fresh, taking several design cues from the funkier Smart range. Leg-room is very impressive, in particular in the back where, like several competitors, the rear seats can slide forward or back, allowing you the option to increase bootspace or rear legroom depending on the circumstances.
Pricing puts it on a par with the big sellers in this market - the Ford Fiesta, Nissan Micra and Toyota Yaris - if a couple of hundred euro more expensive. Four specification levels are available, all with ABS as standard. The 1.1-litre versions start at €14,995 up to €17,295. The 1.3-litre versions start at €15,745 and rise to €18,045.
Mitsubishi has more up its sleeve. While the three-door Colt will carry the lettering CZ3 after its name when it arrives in January, plans are afoot for an Evo version to be called the CZT. This will feature a turbocharged 1.5-litre engine offering 150 bhp and with the sort of performance to take on the likes of the Mini Cooper S or Peugeot 206 Sport. While the car itself has been given the go-ahead, pricing has not been fixed.
There are also rumours of a possible convertible version in the future - and a new Lancer is on the way in 2006 which will radically update that model's look.
Mitsubishi plans an incredible 10 new models in the coming years, so there's plenty of hope if the marque can repeat the design and build quality of the Colt - and keep a close eye on pricing.
Undoubtedly Boulay's departure will impact on design, but his replacement, Akinori Nakanishi, previously held the role of design head in Europe where he worked on the Colt. A look at the three-door version suggests there's some much-needed good news ahead for the troubled brand.