Any hopes that Mitsubishi would launch a new sedan, one that compliments both the Lancer and Galant in the U.S. lineup, are now dashed.

The company was looking at creating a new midsize sedan, patterned after the Concept-ZT from the 2007 Tokyo motor show.  The all-wheel-drive sedan would have been larger than the Lancer, smaller than the Galant, and reportedly a competitor to BMW's 3-series.

Cost was certainly a factor in cancelling the car.  The Concept-ZT used an aluminum spaceframe body and the advanced S-AWC all-wheel-drive system lifted straight from a Lancer Evolution.  Although Autocar suggests the firm had investigated using a steel body and two-wheel-drive, Mitsubishi still says it can't create a sound business case.

Source: Autocar