Mitsubishi 2006 Annual Report Download - page 10

8MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
<President Masuko>
It is important to bring in an external perspective to ensure that corporate culture reforms do not become insular
and taken for granted. Since fiscal year 2004, the Business Ethics Committee and Business Revitalization
Monitoring Committee have been thoroughly monitoring the company from an outside perspective to see whether
our activities violate social norms and whether we are on track to achieving our plan’s goals. I was named Chief
Business Ethics Officer upon my appointment as President to ensure observance of business ethics, and the
CSR (corporate social responsibility) Promotion Office has played a key role in instilling a compliance mindset
through various initiatives across the company. Activities to restore trust are a continuous pursuit. Our goal
remains to create a corporate culture and systems where there are no compliance violations.
With the enactment of new corporate laws in Japan, MMC established an Internal Control Promotion
Committee chaired by Managing Director Ichikawa. By establishing this committee, we aim to redouble the
commitment of all members of the Board of Directors to compliance and risk management, while raising the
entire company’s awareness of activities aimed at restoring public trust.
<Managing Director Ichikawa>
To firmly restore public trust, MMC must strengthen corporate governance, particularly in areas crucial to
establishing stringent risk management. My role is to put in place a company-wide structure for identifying and
understanding risks.
Restoring Profitability on All Counts
Fiscal Year 2006 Plan
Q: What kinds of challenges will you tackle in the second year
of MMC’s revitalization plan?
<President Masuko>
MMC aims to achieve profitability on all counts in the second year of its revitalization plan.
Specifically, we are targeting retail sales of 1,408,000 units, an increase of roughly 5% from fiscal year
2005. On the earnings front, our targets are operating income of ¥43.0 billion, ordinary income of ¥21.0 billion
and net income of ¥8.0 billion. All of these targets are much more ambitious than those for the plan’s first year.
Achievement of these targets is premised mostly on meeting retail sales targets in all regions. It is espe-
cially critical that we attain our targets in Japan, which have been set higher, and in North America, where we
must ensure that sales continue to improve after the recent bottoming out.
To this end, MMC will move on the offensive by bringing a steady stream of new models to both of these
markets in fiscal year 2006. First, in Japan, we aim to grow annual retail sales by more than 45,000 units year-
on-year to surpass the 300,000 unit mark. This will be accomplished by extending the range of the Outlander
and i models, which have garnered strong customer response for their outstanding performance and innovative
design, through the launch of special editions. This will be done with the aim of establishing these two models
as long sellers. We will also roll out three new offerings—
eK Wagon , Pajero and Delica . In North America, we are
striving to improve our ability to attract customers to dealerships and enhance sales capabilities by unveiling
three new models, Eclipse Spyder , Outlander and Lancer , as well as through the successive launch of special
editions of models already on the market.
Top Management Interview 1