Mitsubishi 1999 Annual Report Download - page 29

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Operational review
27
Driven by a new Spirited Products for Spirited People
brand image campaign, MMSA sold 20,386 units of the new
Galant model in just five months without resorting to cash
incentive programs. MMSA began the process of rationaliz-
ing its market areas, introduced employee awareness training
and, through the National Dealer Advisory Board, continued
to work closely with its dealers in making policy decisions.
In December 1998 inventories stood at 69,000 units, a reduc-
tion of 14,000 units compared with the same period in 1997.
Mitsubishi Motor Manufacturing of America, Inc., the
company's manufacturing arm in the United States, returned
a profit for the second consecutive year. This was the result
of ongoing cost reductions and improvements in production
efficiencies designed to lower the break-even point, led by
chief operating officer Richard Gilligan.
Both the new Galant, which went into production in the
spring 1998, and the new 2000 Eclipse, which hits the mar-
ket this year, feature significant designed-in savings in mate-
rial costs and through the use of greater parts commonality.
Introduced in January, In-Station Process Control is now
helping to raise line-off quality levels and productivity.
Production volume at MMMA was 157,144 units, 17%
down on fiscal 1997. Production of the 2-door Avenger /
Sebring model for DaimlerChrysler was 23% down.
Shipments of V6 engines from Japan to DaimlerChrysler
were 267,450 units, down 18%.
To maintain sustained profitability at its units in North
America, in addition to implementing the measures outlined
above, Mitsubishi Motors will cut payroll by 300 in the MM-
SA group and 700 at MMMA by the year 2000.
The company is studying the addition of the fourth mod-
el to the current Mitsubishi lineup of the locally-produced
Galant and Eclipse and the imported Montero Sport. This is
likely to be from the company's new core SUW series recent-
ly introduced in Japan, and will be tailored to match
American SUV tastes.
Truck sales in North America were 5,764 units, an in-
crease of 17% over 1997 and a record.
0
50
100
150
200
250
9897969594
170
236 219 203 193 191 189 194
157
196
(1,000 units)
Sales
Production
Montero Sport
SST show model & 2000 Eclipse
Production & sales in North America