Mitsubishi 2000 Annual Report Download - page 6

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Investment indices were introduced in April 2000.
MMC implemented major changes to the corpo-
rate structure in fiscal 1999. An internal-company
system was introduced with the setting up of the
Truck & Bus Company as a step towards spinning it
off as a separate company by the end of July, 2001.
This will unlock value, enable this unit which boasts
a very sound operational base to realize its full po-
tential, and allow resources to be focused more ef-
fectively on passenger car and minicar operations −
a market sector where competition is intense.
In fiscal 1999, we created a new Office of
Marketing Strategy to promote the Selection and
Concentration strategy and to reflect more accurately
market trends and customer values in our products
and services. The new Office is also responsible for
the creation and building up a strategic corporate
brand through a comprehensive remit that integrates
all activities from product development to marketing
and publicity.
Heart-Beat 21 calls for a major revamping of
minicar operations to bring costs in line with, or be-
low, those of other manufacturers. Restructuring of
passenger car operations will continue with further
streamlining of the production organization, reduc-
tions in material and other costs, trimming of the
product lineup and further integration of the plat-
forms used.
The Company is adopting a more globally orient-
ed approach to its passenger car operations outside
of Japan. Measures include: the introduction of mod-
els that are optimally tailored to individual markets;
the building up of a global complementation system;
and the granting of Office status to operations in
North America and Europe as we loosen the reins
and give local subsidiaries greater autonomy.
The new alliances with DaimlerChrysler and AB
Volvo make sound sense in today's marketplace and
promise rich rewards through synergies that will see
substantial savings in development costs, in procure-
ment costs, as well as increased sales as a result of
better market access and reach and share-winning
competitiveness.
We are continuing to streamline and rationalize
our manufacturing operations in Japan. Under
RM2001 in the last two years, we have reduced
break-even volumes for car, trucks and buses. As we
continue to seek out those hidden factories of free
capacity, we have sold off under-performing plant,
are integrating assembly lines, have transferred
functions to more efficient plants, and are trimming
lineups and platforms. We have integrated truck and
bus sales companies to raise operating efficiencies
and bring total payroll to a more suitable level.
New plant coming on line in fiscal 1999 included
the New Yagi continuously variable transmission
factory in Kyoto. Production at an engine joint ven-
ture in Shenyang China began in March 2000.
When all is said and done, our job is to sell auto-
mobiles. The MMC Total Automobile Service creed
directs us to build up and maintain customer satisfac-
tion and brand loyalty by providing excellence in
product and service. To achieve this and to concen-
trate on what we do best, we are focusing resources
on three core model series: SUW, Pajero, Mini car.
Powered by very clean DI diesel and GDI gaso-
line engines, the new Global Standard Pajero series
launched in September 1999 gives eloquent expres-
sion to the MMC vehicle development philosophy,
defined today by Smart design, people-friendly, and
Ecology conscious, environment-friendly.
In May, we introduced the all-new Lancer Cedia
new-generation compact sedan to replace 4-door
Lancer and Mirage models. And last December, we
started supplying local authorities with the
GDI+ASG Pistachio, which marries a 1100cc GDI
engine and Automatic Stop & Go (ASG) technology.
MMC developed and produces the most effective