Mitsubishi 2002 Annual Report Download - page 16

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14
What elements are especially critical to restructure and revitalize passenger
car sales operations in Japan?
ANSWER
Two elements of our restructuring plan for the domestic passenger car sales network are particularly impor-
tant. First is the recognition that sales company profitability is essential for growth. Second is that deep-
rooted reform is required to achieve this strategic target. The deadline for the achievement of the Turnaround
goals is the year ending March 2004, so it is vital we develop a strong sales system by that time. Since the
supply of new products within that time frame is limited, the crux of the Turnaround revolves around boosting
profitability by a change of focus toward quality of service and sales, and through optimization of the sales
network structure.
Our primary task is to revise the earnings structure of our sales companies, which have been overly
dependent on new car sales. We plan to shift the balance toward the steadier income streams provided by
comprehensive service provision, including second-hand vehicles, customer service, parts, insurance and
credit finance. This means a major change in focus toward more of a customer relationship management
concept. Essentially, we need to look at the first point of customer contact through a new car sale as the
starting point of a longer relationship of multiple dimensions. Over the average period of eight years that
Mitsubishi car owners keep their vehicles, they need a range of services, including inspections, mainte-
nance, repairs, parts and insurance.
In practical terms, we have split each of our 4 domestic sales divisions into a total of 14 sales areas to allow
QUESTION