Mitsubishi built the second generation of the Outlander in Europe together with the French group PSA (Peugeot-Citroen) and took a diesel engine from Volkswagen.
After five years on the market, Mitsubishi dropped the first generation of the Outlander, and the second generation was unveiled in October 2006. It was built as a world car and adapted for specific markets. To prove that, Mitsubishi dropped the Airtrek nameplate from the Japanese market and use the Outlander, like in the rest of the world.
The car's design was a mix of angular lines and curved panels. It sported glass-covered headlights and a split grille. Depending on the trim level, it featured an aluminum shield under the apron, protecting the engine and the gearbox. In the back, Mitsubishi installed a set of clear taillights with LED-like lamps inside. The carmaker chose a split opening system with the top side going upwards and the bottom being lowered when opened for the tailgate.
Inside, the Outlander offered room for seven in a 2-3-2 configuration. While the last row was not very comfortable, it could host two adults for short distances. At the front, the carmaker installed a dashboard inspired by the Lancer, with a binocular-style instrument cluster. Depending on the transmission, the carmaker installed paddle-shifters for the automatic gearbox versions and a rotary knob for the transmission switching the car between front-wheel-drive and all-wheel-drive with an option for a locking center differential.
Under the hood, Mitsubishi installed a choice of three engines: two with gasoline and one turbodiesel. The latter was a 2.0-liter TDI from Volkswagen.