Mitsubishi, a member of the Nissan-Renault alliance, has also stated its intention to stop producing the Pajero SUV next year, and also close down the plant that makes the SUV in Japan. The move follows Mitsubishi's internal reorganisation to return to profitability.
Mistubishi has halted new model launches in Europe as part of an overhaul of its global operations to cut costs, which is expected to mark the beginning of the brand's withdrawal from the European market.
Mitsi's long-standing off-roader is finally retiring after almost fifteen years of the current generation.
Production of the Outlander and other vehicles will be transferred from the plant to its factory in nearby Aichi Prefecture, the company said. Japanese sales of the SUV had stopped in 2019 but the plant kept building for worldwide export, including New Zealand.
A new Xpander HEV will also be prioritised for FY2023 amidst a range of new work and exploration vehicles, including a new Outlander SUV in FY2021, a new Triton pickup in FY2022, and a new Xpander and Pajero Sport in FY2023.
While the long-serving Pajero is being retired, the rest of MMC's line-up is set to continue full steam ahead with an updated Eclipse Cross due here by the end of this year bringing updated styling, a revised interior and a new infotainment system.
Meanwhile, Toyota has made a decision to close one of its plants in the Shizuoka Prefecture city of Susono at the end of 2020, while Honda will shutter its Sayama plant in the Saitama Prefecture city of Sayama by fiscal 2021.
Other cost-cutting plans from Mitsubishi include stopping all sales in Europe for the time being.
"However, the flipside of Mitsubishi's cleaning-house was its new mid-term business plan - officially called "'Small but Beautiful' - and which will focus on the ASEAN market and strengthening its plug-in hybrid electric (PHEV) models.
With such a heavy emphasis on mid-sized and compact SUVs along with ever strengthening popularity of pick-up trucks, the final nail in the coffin for the Pajero was its relatively poor sales performance with just 979 units sold through the first half of 2020.