Mitsubishi 2002 Annual Report Download - page 5

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programs and other measures led to the adjustment of
approximately 9,100 people, compared with an initial
target of about 5,100.
Other major restructuring commitments included a
stronger focus on core business activities. We took vari-
ous steps to outsource non-core operations. For example,
we spun off our transmission development and produc-
tion operations into a new joint venture with JATCO Ltd.,
an affiliate of Nissan Motor.
Openness, realism, growth
The Turnaround is not merely about achieving numbers
on paper. As commented last year by my colleague,
Takashi Sonobe (now Chairman), we were acutely aware
that MMC needed to undergo fundamental change. Such
change has transformed all parts of the company and is
now delivering solid, tangible results.
It all adds up to a multi-faceted renewal of the com-
pany, which our people are enthusiastically embracing.
We are changing the culture of the company in an open,
positive, and exciting manner. In one sense, we have
evolved from the previous engineering- and production-
oriented focus to become a more customer- and market-
driven enterprise. Even that description fails to capture
entirely the major shift that is happening: in the win-win
relationships we are developing with suppliers; in the cre-
ativity that is flourishing in product design and develop-
ment; and in the new culture of openness and
responsibility that all result in a sharper focus on our cus-
tomers’ needs.
In fiscal 2002, we are on course to achieve the next
stage of the Turnaround. Our commitment remains firm,
and the targets are realistic. This year we will launch sev-
eral new cars in Japan that will reflect the new Mitsubishi
identity and image—“Spirited Cars for Spirited People.”
This will help drive sales forward in our core markets.
The runaway success of our
EK - WAGON in Japan in the
mini car segment suggests we are on the right track.
Our aim for fiscal 2002 is to stabilize sales of passen-
ger cars in Japan and Europe, leading to growth the
year after. We aim to double our operating profit mar-
gin, to 2.5%. We will enter new markets such as Mexico
and Canada in 2002 and start local production of MMC
brand vehicles in China for the first time, as early as
March 2003. These initiatives are supported by our alli-
ance with DaimlerChrysler (DC), which has already
started to generate significant benefits beyond the ar-
eas of shared platforms and components.
Forthright initiatives were taken to stabilize passen-
ger car operations, and as a result it returned to profit-
ability in fiscal 2000 and continued to improve its
performance into fiscal 2001. Market conditions for
trucks and buses remain challenging. Under such an
environment, an even better performance hinges on per-
sistent strengthening of our competitive position. Our
alliance with DC continues to grow. One example is the
distribution of
CANTER light-duty trucks via the DC sales
network in Europe since December 2001. It is vital that
we take a deep look into the alliance to further intensify
the process of driving growth and consolidation syner-
gies to expand the penetration of our products and maxi-
mize their cost/benefit profile for the benefit of our
customers globally.
Saying that the Turnaround is on track is an under-
statement. It is a full transformation. Spirited cars re-
quire spirited people to design and build them. Together,
we are creating a future that will never again be an un-
exciting reflection of the past. I am fully committed and
honored to be leading the MMC team into this new era.
I hope that you are as excited as I am. I look forward to
your continued support.
July 2002
Rolf Eckrodt
President & CEO