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26 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
0
100
200
300
400
500
600
04 06
05
–120
–100
–80
–60
–40
–20
0
04 06
05
0
50
100
150
200
04 06
05
Net Sales
(¥ billion)
Retail Sales
(Thousand units)
Operating Loss
(¥ billion)
With annual demand of around 17 million vehicles, the
huge U.S. market assumes the same importance as Ja-
pan in the Mitsubishi Motors Revitalization Plan. MMC
is working to restore sales competitiveness in the world’s
leading automobile market through an aggressive new
model introduction program and through various mea-
sures to build trust with dealerships and boost produc-
tivity at the U.S. manufacturing plant.
Overview of Fiscal Year 2005
Retail sales in the North American market totaled
156,000 units in fiscal year 2005. This figure was
18,000 units less than the previous year’s total and
13,000 units below the target for the year. The drop in
sales reflected the ongoing challenge to rebuild the
Mitsubishi Motors brand in the United States and was
also due to the combined effects of hurricanes, high oil
prices and fierce sales competition.
Of the two new models introduced during the year,
although the remodeled
Eclipse
sold steadily, sales of
the
Raider
pickup truck fell below target. Overall, net
sales declined 5.8% on a year-on-year basis to ¥415.7
billion. Following the large asset impairment charges
and restructuring charges booked in fiscal year 2004
(thus leading to lower operating expenses), the operat-
ing loss improved by ¥96.6 billion to ¥7.2 billion. How-
ever, reflecting the delayed recovery, MMC booked
additional impairment charges and restructuring charges
against North American operations. These actions will
help to strengthen and revitalize MMC’s operating struc-
ture in fiscal year 2006 and subsequent fiscal years.
MMC appointed Hiroshi Harunari as president and
CEO of Mitsubishi Motors North America, Inc. (MMNA)
in January 2006. MMC has also dispatched manage-
ment personnel from Japan to put in place an organiza-
tional structure that is responsive and strongly linked to
the head office in all fields, including production, de-
velopment, sales and marketing.
North America
Outlander (North American specification)
(FY)
*MMC revised targets for fiscal year 2006 when it released fiscal year 2005 full-year financial results on April 27, 2006.
(FY) (FY)
Plan*Plan*Plan*