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58 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
(2) Key points and additional topics in the Mitsubishi Motors Revitalization Plan
•Putting customers first/Recovering trust
•Put customers first in all areas, from marketing through after sales services
•Provide measures for achieving no compromise improvements in product quality
•Business strategy
•Sales plans reflect downside risks
•Promote of operational tie-ups with other automakers
•Rationalize of production capacity and sales network
•Reinforce capital and funding
•Strengthen financial standing and securing capital for revitalization
•Boost management’s effectiveness
•Lead from the top with a new management team
•Set up a thorough follow-up system
•Implement and extend across the board compliance
[Additional topics]
•Strengthen sales operations around the world (as Japan and North America) in order to meet the sales target set
out by the plan
•Implementing cost reduction policy in all functional areas including sales, production and research
•Optimization of the global production system
•Enhancing corporate governance through internal control
(3) Targets
•Achievement of profit in FY2006 (net income of ¥8 billion ($68 million))
•Establish sustainable profitability in FY2007 (net income of ¥41 billion ($349 million))
(4) Business strategy
(i) Sales volume plans
Sales plans in the Mitsubishi Motors Revitalization Plan have been drawn up for each region based on current market
trends to set realistic and achievable targets and eliminate all foreseeable downward risks. As a result, fiscal year
volume targets in the new plan are lower than those in the Business Revitalization Plan but are set to recover to the
FY2003 level of 1,500,000 vehicles in FY2007.
(ii) Product strategy
a. Motorsports
The MMC group places Motorsports at the very heart of its car design and development activities. The technology
and experience built up through taking part in grueling and competitive events such as the Dakar Rally and the
World Rally Championship is being fed back and reflected into all production cars as the “Sporty DNA” and “SUV
DNA” that define the MMC brand. That same technology and expertise also enables increased safety and durability
as well as driving performance and the MMC group intends to further raise its product value by actively promoting
these embodied qualities.
b. Improving efficiencies in model mix
The new plan incorporates measures under which the MMC group will cut back the number of low volume models
produced for individual markets and concentrate managerial resources on highly competitive global market models.
This will raise development and production efficiencies.