Mitsubishi 2011 Annual Report Download - page 10

>Concept: Implement new reforms immediately
Given the dynamic changes that are taking place in our operating
environment, we cannot expect to triumph over the competi-
tion simply with strategies enacted to cope with an old operat-
ing environment. Knowing that further change in our operating
environment is inevitable, we will address those changes head-on
by turning them into new possibilities and business opportunities
through reforms. These are needed to provide the flexibility to
respond immediately to upcoming changes. Therefore, we have
formulated the below strategies for MMC to grow and leap forward:
1. Concentrate operating resources in emerging markets
and environmental initiatives—our “core strategy”
2. Reform our cost structure to achieve cost competitiveness
on a global level
3. Pursue opportunities for further profit through business
alliances
4. Reinforce our operating base (formulating new initiatives
including augmenting MMC’s financial base, employee
training, quality improvement, and CSR/compliance activities)
> Concentrate operating resources in emerging
markets and environmental initiatives
First, we will focus our operating resources on emerging mar-
kets, where demand is growing rapidly, and on environmental
initiatives in response to mounting global awareness.
Jump 2013 Business Strategies
Aim to reduce material costs ¥90 billion by fiscal 2013, compared with fiscal 2010 levels
Expand overseas procurement
Promote overseas procurement
for models produced in Japan
Promote cutbacks in of platforms
Expand economies of scale for common parts
Strengthen cost reduction activities
Strengthen collaborative efforts
with overseas production hub
FY2010 FY2013 (Target)
FY2013 (Target)FY2010 FY2015 (Target)
Overseas procurement ratio: 18% 25%
69
Number of platforms: 12
15% decrease in C-segment platform
Reforming the Cost Structure: Aiming to Secure Cost Competitiveness at Global Level
We will accelerate the development of “eco-cars,” includ-
ing electric and plug-in hybrid vehicles, introducing eight new
eco-cars by the end of fiscal 2015; this initiative will begin with
the MINICAB-MiEV electric light commercial vehicle, which we
plan to launch by the end of fiscal 2011. Moving away from
regional platforms to global strategic vehicles, we will introduce
the “Global Small” car to meet emerging market needs for
automobiles that are compact, affordable and fuel efficient
as well as advanced market needs for smaller, more efficient
and more environmentally friendly vehicles. While we develop
these kinds of new models, we will work to roll out our electric
vehicle technologies, as well as improving and transforming our
existing green technologies (See page 12).
We will boost capacity in emerging markets by completing
our third factory in Thailand, augmenting production at a new
joint venture in China, raising production capacity in Brazil and
commencing full-fledged production of SUVs in Russia. At the
same time, we will discontinue region-specific models such as
those we currently offer in the United States and the Nether-
lands as we optimize our production capability in advanced
countries (See page 16).
We aim to reinforce sales in emerging markets by consider-
ing new investments in MMC partner companies in China and
Brazil, as well as increasing our capital ratios in other partner
companies in emerging markets that we already hold a stake in.
Message from the President
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
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