Mitsubishi 2002 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2002 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 70

  • 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

13
The other half of this particular success equation has been another series of sweeping changes on the
production side. Our policy is to raise our proportion of locally manufactured vehicles in North America. In
part, this is to minimize the effects of currency fluctuations. But there are other considerations, such as
image enhancement from being an American-made brand. We also believe it is best to make cars in the U.S.
to better cater to American tastes. In our new setup, sales operations provide customer feedback to design
and production teams to improve product development.
Better training and internal communication have driven this part of the transformation. Training has helped
deliver substantial improvements in local manufacturing productivity—our plant posted productivity of under
22.0 hours per vehicle in 2001, compared with 37.0 hours per vehicle three years ago. Similarly, better
communication between production, sales and distribution has helped cut lead times and trim inventories,
generating cost savings even as sales have risen.
As we prepare to open new distribution channels in Mexico and Canada, and as we develop a series of
new models specifically for the North American market, I believe we are well placed to continue our current
solid growth trajectory.
The Mitsubishi brand has a strong presence in North
America, especially among younger drivers. Carrying the
seeds of this success to Japan, Asia and Europe is impor-
tant to spurring growth within the Group.