Mitsubishi 2001 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2001 Mitsubishi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

[6] MITSUBISHI MOTORS CORPORATION Annual Report 2001
A1.[S] In the past, MMC has tried several times to renew itself by new manage-
ment plans with only limited success. We did not really manage to change from a
reactive, engineering-driven mentality to a proactive, market-oriented company. On
top of this, the recall in 2000 clearly damaged our credibility. Hence we need to reinvent
the entire MMC culture and convince our customers that MMC has changed for the
better. We needed a major roadmap for a fundamental change.
At the same time, we started our strategic alliance with DC in 2000. This provided
us with a great opportunity for implementing real changes at MMC. Combining our
existing strengths with the management experience of our new partner enabled us to
come up with a real blueprint for a new MMC, which we started to implement in April
of this year.
A2.[E] The Turnaround Plan is based on three main pillars: cost reduction, process
optimization, and new products and markets. The first step is, of course, cost-cutting,
an indispensable measure that stands at the beginning of every restructuring effort.
Second, we will optimize the entire value chain. This comprises, among others, the
implementation of value analysis to our transactions with suppliers and dealers, a
new quality management system and strict control on a company-wide basis. Finally,
however, there will be no turnaround without new and exciting products. We are
developing such vehicles under the leadership of our new chief designer from DC to
create a stronger MMC brand in the future. In addition, to raise sales volumes of
new models, we will also enter new markets like Mexico and Canada.