Mitsubishi 2000 Annual Report Download - page 12

up, revamp its minicar operations under the direction of a
new Supervisory Office, and further boost the competitive-
ness of the Pajero series. Overseas, MMC will beef up prod-
uct strength in North America with a Project America strate-
gy car −developed in, developed for and built in the United
States −and other market-tailored models that will boost
sales. The company will also seek to reap rich synergistic
benefits through collaboration with DaimlerChrysler in pro-
duction, marketing and other operations.
MMC will continue to devote substantial resources to the
development of low fuel-consumption engine, to fuel cell
electric vehicle and to other environmental technology.
Over the last two years, much has been achieved under
RM2001 in streamlining and rationalizing the company's
passenger car production organization in Japan. Under Heart-
Beat 21, restructuring will continue until 2002 in order to
bring down break-even volumes further, while the introduc-
tion of innovative production methods will reduce costs. In
addition, minicar operations are to undergo a major revamp-
ing in order to reduce costs to the same level as, or under,
those of other manufacturers.
Under Heart-Beat 21, on-going programs and new mea-
sures will reduce fixed and variable costs to realize the best
quality and lowest costs in the industry. Minicar operation
costs will be brought in line with those of other auto makers.
Joint purchasing with DaimlerChrysler will reduce procure-
ment costs. Production costs will be reduced by: adopting
new and innovative methods; more extensive use of modu-
larization and common parts; reducing the number of basic
parts; sharing and more effectively utilizing IT resources; in-
troduction of supply chain management; streamlining of the
organization; and paring down interest-bearing liabilities.
Heart-Beat 21 sets out strategies for improving opera-
tional efficiencies and improving customer satisfaction in
markets around the world. It provides measures designed to
increase productivity and management efficiencies, to im-
prove levels of after-sales service, used-car and other value-
added operations. MMC will share platforms, components
and parts with DaimlerChrysler; and where available will uti-
lize DaimlerChrysler procurement and sales networks, finan-
cial services resources and realize other value-adding syner-
gies.
In Japan, MMC will focus resources on its more prof-
itable dealerships and will adapt to and accommodate re-
quirements of the Internet and other facets our rapidly ad-
vancing information society. In its minicar operations, MMC
will aim to win a 20% share by: becoming more competitive;
introducing new-concept models; reducing organizational
costs; and promoting regional strategies that reflect market
characteristics.
In North America, MMC will work to achieve a stable
annual sales base of 300,000 units, increasing this to 400,000
by 2005. Scheduled measures include: integration of manu-
facturing and sales operations management, effective July
2000; implementation of Project America and introduction of
a new SUV for local production; and maximizing synergies
in its alliance with DaimlerChrysler.
In Europe, MMC will: work towards joint management
of, and production at, NedCar with DaimlerChrysler, the new
Z-Car included; restructure the NedCar production organiza-
tion; and adopt measures to buffer the effects of the weak
Euro.
In Asia & ASEAN, MMC will: collaborate with
DaimlerChrysler using MMC production facilities; strength-
en product lineup by introducing the Z-car, the new Lancer
and a light commercial vehicle developed exclusively for the
region; set up local companies to reduce procurement and
complementation costs; promote operations in China;
strengthen R&D functions in Thailand, Taiwan and
Malaysia; and restructure its operations in Australia.
■Growth strategies; commercial vehicles
Under the Heart-Beat 21 timetable, MMC will spin off its
truck and bus operations and grow a new independent com-
mercial vehicle company by collaborating with AB Volvo
and by introducing superior products that meet global safety
and environmental requirements.
Heart-Beat 21
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