Mitsubishi 2006 Annual Report Download - page 25

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MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
Top Management Interview 2:
Roadmap for Improving Sales
<President Masuko>
As explained by the two directors of operations, a continuing focus on rebuilding the Mitsubishi brand in Japan
and the U.S. is vital. We must also not forget that we have customers throughout the world, and showing a
commitment to efforts in each region with an aim of revitalizing our business overall is also important.
European sales of the new Triton (L200) one-ton pickup truck, exported from Thailand, are off to a strong
start. We want to maintain this momentum by introducing new models, such as the new Pajero (Montero) and
Outlander , to lift overall sales.
In recent years, we have been focusing on new growth markets and creating more Mitsubishi fans in these
markets is very important. Recent developments include a great success in the Russian market. The Mitsubishi
Lancer has proven highly popular in Russia and has won the Car of the Year Award (C-segment class) for the
second straight year. Helped in part by strong relationships with local dealers, Lancer sales have now grown to
the point where they are competing for the title of best-selling car in Russia. In September 2006, we will
introduce the much larger U.S.-made Galant into the Russian market. Through exports of Galant to the
Ukraine and the Middle East as well, capacity utilization at our U.S. plant will be raised. This will substan-
tially contribute to fiscal year 2006 operating results, and I want to make a success of these initiatives.
In China, traditionally Mitsubishi-brand vehicles account for only around 20% of MMC’s total sales, in-
cluding local-brand cars produced by its local partners. In fiscal year 2006, however, we plan to take a direct
equity interest in South East (Fujian) Motor Co., Ltd. (SEM), a partner in China, to commence full-fledged
production and sales of Mitsubishi-brand vehicles. In fiscal year 2007, we plan to raise the share of Mitsubishi-
brand vehicles to around 80% of total sales. Fortunately, the Mitsubishi brand enjoys a strong reputation in
China, which we will leverage to expand our operating base.
In ASEAN, we have positioned Mitsubishi Motors (Thailand) Co., Ltd. (MMTh), our local manufacturing
subsidiary, as the principal export base for our Triton (L200) one-ton pickup truck, which underwent a full
model change in August 2005. Exports of this model from Thailand to Australia, Europe and South America
have already started and MMTh plans to increase production capacity from 180,000 units per year to 200,000
units during fiscal year 2006 to meet growing overseas demand.
Retail sales are also on the rise in the Middle East and Africa, especially in oil-producing nations. Introduc-
tion of the mainstay Triton (L200) one-ton pickup truck will add to unit sales, thus continuing our expansion
in these regions.
In Australia, following the introduction of the locally made 380 in 2005, we plan to boost overall sales by
introducing three new models: the imported Triton (L200) , Pajero (Montero) and Outlander .
We want to make fiscal year 2006, the second year of our revitalization plan, a year in which a large
number of people once again recognize the true worth of Mitsubishi Motors. Our targets for fiscal year 2006
are much more demanding and ambitious than in the first year of the plan. We are committed to marshalling
group-wide resources in automobile development, manufacturing, marketing, and after-sales services to become
the company of choice for vehicles and services.