Mitsubishi Motor Sales of Canada Inc., looking for ways to boost sales, is in discussions with DaimlerChrysler Canada Inc. about a plan to have Chrysler dealers in smaller markets outside Canada's major metropolitan areas sell Mitsubishi vehicles.

Such a strategy would increase Mitsubishi's presence well beyond the 48 dealers it has now in major markets by allowing it to tap into Chrysler's 500-plus network, which covers scores of smaller cities and towns where Mitsubishi has no outlets.

The discussions come near the end of Mitsubishi's first full year of sales in Canada, during which it has failed to meet its target of 20,000 vehicle sales.

"There's been no formal approval for this [plan]," Mitsubishi Canada Ltd. president Randy Sears cautioned yesterday.

There have been constant talks between Mitsubishi and DaimlerChrysler Canada about how to best take advantage of the fact that the two companies have a common parent in DaimlerChrysler AG, Mr. Sears said. "These are only discussions at this point."

That means no specific model has been set up, he said, but one scenario could involve Chrysler dealers in communities where there is no Mitsubishi outlet setting up a separate Mitsubishi showroom and hiring a separate sales staff. Parts and service operations would be shared with the Chrysler dealership.

The largest market where Mitsubishi is absent is Victoria, with a population of more than 300,000. There are two Chrysler outlets there.

Mitsubishi's sales in Canada will probably amount to 15,000 vehicles this year, Mr. Sears said yesterday.

As of the end of November, the company had sold 11,307 cars and sport utility vehicles -- it has no trucks or minivans -- and they fell last month from year-earlier levels, even though November, 2002, was just the third month of operations.

"The industry's a lot different than when we started," Mr. Sears said. "It's down from a year ago. It's a tougher market with incentive spending."

But he said the company is pleased with the results so far.

The auto maker's struggles in Canada are less dramatic than of those in the U.S. market where sales plunged: Pierre Gagnon, the Canadian-born president of Mitsubishi's North American operations, has departed; 20 per cent of the staff at its U.S. sales unit have been laid off; and an expansion of its assembly plant in Normal, Ill., that was already under way has been halted.

The problems and financial losses in the United States stemmed from aggressive marketing to younger buyers that included no payments for up to a year and interest-free loans. Many of the customers were unable to start paying when the free offers ended, which led to massive losses at the company's credit arm.

The auto maker spent about $25-million (U.S.) on co-producing and placing its vehicles in the movie 2 Fast 2 Furious, which was about so-called tuners who jazz up their cars and race them.

In Canada, similar targeting of the youth and tuner market was probably a mistake, said one industry observer.

Mitsubishi's approach in Canada appeared to differ little from the strategy in the United States, this observer said.

In Canada, the youth market is smaller and the mean age of first-time buyers is 32 years.

One Mitsubishi dealer said his outlet is "doing okay, but it's still not enough volume to make me a happy guy. It's a challenge, there's no doubt about that."

Mr. Sears said the plan is still to have 150 Mitsubishi dealers in place across the country by 2006.

The company's marketing approach will also change, he said, with a broader demographic appeal and an attempt to attract what he called the rational side of buyers.

But "our target is still that youthful-minded consumer," he said.