Mitsubishi 2000 Annual Report Download - page 8

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Implementation of the measures I have outlined
above is expected to realize an ordinary profit of
some ¥20 billion in fiscal 2000. While the one-time
disposal of postretirement benefit liabilities is ex-
pected to result in a net loss of ¥70 billion in our
consolidated results, this step will significantly bene-
fit the company's income position annually there-
after.
For fiscal 2003, Heart-Beat 21's final year, we
forecast that the benefits of our alliances with
DaimlerChrysler and Volvo and the aggressive intro-
duction of new products that exploit those benefits,
will contribute to a consolidated ordinary profit of
¥100 billion and net profit of ¥50 billion on consoli-
dated sales of ¥4 trillion. Meeting
these targets will show we are on
track to the kind of financial health
that will ensure sustainable success in
the 21st century.
It is with a deep sense of contri-
tion that, through this letter, I must
reveal to our shareholders and all oth-
ers who have put their trust and con-
fidence in MMC that the Company
has been guilty, over the years, of hiding from the
authorities in Japan customer claims that might lead
to general recalls. I do wish to say, however, that
with customer safety and satisfaction foremost in
mind the Company has always been quick to respond
to and rectify individual problems reported to us.
To ensure this regrettable situation never occurs
again, on 22 August the Company set up a Quality
Issues Action Committee, which will be checked by
external experts, and will assiduously devote all its
resources to raising the general level of quality in all
its products.
The other pressing challenges facing MMC today
are to put the Company on a firm and profitable foot-
ing, to restore dividend payments and to grow the
business. Heart-Beat 21 gives us the roadmap, while
the progress made to date and our new global al-
liances give us the means to reach those goals. Our
Global Partner Alliances will bring significant value-
adding synergies in utilization of mutual production
and sales network resources, as well as from comple-
mentation in car lineups and component supply
worldwide.
Naturally, I was encouraged when Daimler
Chrysler Chairman Jurgen Schrempp remarked, "The
global and strategic alliance with MMC is well-bal-
anced both in terms of regions and products and will
enable us both to grow and develop into truly global
companies. To succeed in this, to ex-
ploit our mutual strengths and grow
bigger and become more competi-
tive, requires the kind of cooperation
that can only come from an all-en-
compassing partnership."
Echoing those sentiments, I
would like to bring this letter to a
close by saying that to reward our
shareholders and customers for their
support and confidence, and our employees for their
loyalty and dedication, we are focused on delivering
great products, great services and great results. We're
connected and we will go the extra mile.
We're connected!
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