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[42] MITSUBISHI MOTORS CORPORATION Annual Report 2001
MANAGEMENT’S DISCUSSION AND ANALYSIS
Operational Review
Mitsubishi Motors Corporation (MMC) recorded an operating loss in fiscal 2000, ended March 31, 2001,
resulting from a slump in auto sales in Japan and Europe. MMC also recorded claims-handling ex-
penses and a one-time charge for the Mitsubishi Safety Support Program, a free-inspection program
implemented following last year’s recall, and wrote off retirement-benefit obligations in a lump sum.
Moreover, MMC recorded restructuring charges under the Turnaround Plan, which is aimed at restruc-
turing MMC’s operations. These and other non-recurring items amounted to ¥313.3 billion. Accordingly,
MMC posted a net loss of ¥278.1 billion.
MMC made a private placement of new shares to DaimlerChrysler (DC) in October 2000, thereby
allowing DC to acquire a 34% stake in MMC. In April 2001, MMC changed its strategic partner in Truck
& Bus operations from AB Volvo to DC.
MMC, under the alliance with DC, began implementing specific measures based on the Turnaround
Plan. MMC is promoting a Group-wide effort to achieve operating income of ¥20.0 billion and break
even on the bottom line in fiscal 2001 on a consolidated basis, and aims to increase its operating
income ratio to 2.5% in fiscal 2002 and 4.5% in fiscal 2003.
Net Sales and Operating Income
MMC recorded ¥3,276.7 billion in consolidated net sales in fiscal 2000, a drop of 1.7% from the preceding
year. This was due mainly to lower unit sales in Japan and the weakening euro, which had an effect
on MMC’s European unit sales. Gross profit decreased 4.4% to ¥522.1 billion. MMC posted an operating
loss of ¥73.9 billion, compared with operating income of ¥22.5 billion in fiscal 1999, despite a global
effort to cut costs.
UNIT SALES
(MMC SHIPMENT BASIS)
Truck & Bus
Passenger Car
NET SALES
Truck & Bus
Passenger Car
OPERATING INCOME
Truck & Bus
Passenger Car
99 00
(FY)
0
1,000
2,000
3,000
4,000
(¥ billion)
99 00
(FY)
–100
–50
0
50
(¥ billion)
99 00
(FY)
0
500
1,000
1,500
2,000
(1,000 units)