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MITSUBISHI MOTORS CORPORATION Annual Report 2001 [3]
products. We have significantly boosted R&D spend-
ing and completely reorganized our design operations.
With DC, we are building a new product portfolio
characterized by an exciting new brand identity.
These two halves of the equation add up to a
comprehensive re-engineering of all the business
processes involved in the entire value chain, from
product portfolio planning, design and development,
through production, to sales and marketing and
finally after-sales service.
Open communication, solid commitments
We are changing the way we deal with our suppli-
ers, dealers and other business partners. Based on a
new, open-book communication policy, we have
invited suppliers to become partners in our develop-
ment processes. Using this approach combined with
global sourcing, we can reduce material costs
through innovative cooperation, rather than con-
stant cost-cutting.
The key to successful execution of The Turnaround
is our people. Managers and their departments have
embraced the new plan, and they are personally
responsible for overseeing and delivering progress,
which has been mapped out in steady, achievable
portions. We will monitor progress month by month.
I have established a dual-COO structure in which
Rolf Eckrodt heads up Passenger Car operations and
Takashi Usami leads our Truck & Bus operations.
Together, we are leading the company. I believe we
make a good team.
Global partners
In April 2001, DC strengthened their alliance with us,
buying out AB Volvo’s 3.3% share to raise their equity
stake to 37.3%. This represents a significant cement-
ing of our partnership, extending our strategic tie-up
with DC to a full-fledged global alliance covering
the Passenger Car and Truck & Bus businesses. By
combining the strengths of the two companies we
will create an ideal platform for a real and funda-
mental change of MMC.
This alliance provides us with valuable resources
and many opportunities to ensure our survival and
to expedite the process of becoming a strong global
player. First, we are absorbing quality systems and
value-chain expertise developed by DC, a company
that has a similar engineering-based heritage to
ourselves. Second, the alliance provides us with the
potential for enhanced cost savings and product
design and development through platform and
component sharing. Finally, we have acquired expe-
rienced leadership from DC in the form of Mr.
Eckrodt and his team, all of whom now work for
MMC in Japan.
We are under no illusions: we have a mountain to
climb. But I believe we have the power to change
through the support of many committed people in
engineering our revival. I believe MMC has a bright
future within the strategic alliance with DC as a
global player in both Passenger Car and Truck & Bus
operations. I hope all our shareholders will also lend
us their support.
August 2001
Takashi Sonobe
President & CEO
Rolf Eckrodt Takashi Sonobe Takashi Usami