Mitsubishi 1999 Annual Report Download - page 30

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Operational review
28
Europe
MMC sold a record 277,206 cars in Europe in fiscal 1998, a
10 % increase over 1997 and a record. A slight decline in
volume in Germany and the UK was more than made up for
by strong sales in other EU markets, Italy and Spain in par-
ticular.
Sales of the made-in-Europe Carisma were 10% up, and
were supported strongly by the new GDI-powered Galant,
and the L200 pickup imported from Thailand. Sales were al-
so boosted by the introduction of three new models in 1998:
the Space Wagon, Pajero Sport and the made-in-Europe
Space Star.
The enthusiastic acceptance in environmentally-aware
Europe of Mitsubishi's GDI eco-engine, which cuts fuel con-
sumption and carbon dioxide emissions by an average 30%,
gives the company a telling competitive advantage. The
company now markets four GDI-powered models in Europe:
Carisma, Galant, Space Wagon and Space Star. GDI engines
also power Volvo S40 and V40 models made at NedCar.
The new Pajero Pinin compact SUV, exhibited at the
Geneva Motor Show, is due to go into production at Pininfarina
in Italy this summer, and debut on the European market in the
autumn. With its Pajero pedigree, GDI engine and Pininfarina
styling, sales are expected to reach 35,000 in 2000.
Annual production capacity at Netherlands Car B.V–MMC's
manufacturing arm in Europe and a joint venture with Volvo Car
Corporation–was increased from 180,000 to 280,000 in 1998. In
February 1999, MMC and VCC each acquired half of the Dutch
government's holding in their NedCar joint venture. MMC paid
NLG110 million for 16.7% of total stock, raising its holding
from 18.3% to 35%. The MMC group and VCC now have equal
holdings in NedCar.
Total production volume at NedCar was 242,804 in
1998, of which 91,884 were Mitsubishi brand vehicles. The
new Space Star model accounted for 13, 645 of these.
In January 1999, MMC and Peugeot S.A. signed an
agreement under which the company will supply the French
manufacturer with GDI engine technology. This represents
another significant step forward in the company's quest to
popularize what is currently the most effective and immedi-
ately applicable technology for reducing fuel consumption
and greenhouse gas carbon dioxide emissions.
Mitsubishi brand truck sales in Europe were 8,434 units,
an increase of 10% on 1997. Production volume of Canter
light-duty trucks at Mitsubishi Truck Europe in Portugal was
9,455 units, an increase of 30%.
The company sold 1,339 MTE-made trucks through
Volvo Trucks Corporation's network in the UK, France and
Italy in the initial year of its operational alliance with the
Swedish manufacturer. The company started truck sales in
Poland in the latter half of 1998, and plans to expand sales to
0
50
100
150
200
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300
9897969594
5
189
24
194
45
214
90
257
101
286
(1,000 units)
Sales
Production
Pajero Pinin
Production & sales in Europe