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16
ANNUAL REPORT 2003 POWER TO CHANGE
Stefan Jacoby, President & CEO of MME (left)
Gunter Butschek, President & CEO of NedCar (right)
Feature
EUROPEAN OPERATIONS
16
ANNUAL REPORT 2003 POWER TO CHANGE
On the eve of its 30th anniversary in Europe (October 1974 — London Motor Show), MMC is
reinventing itself in the European market through the Turnaround of its European affiliate,
Mitsubishi Motors Europe (MME) and its entire European operations.
Based in Amsterdam, MME handles sales, marketing and distribution of Mitsubishi passen-
ger cars, parts and accessories in over 30 countries in Europe, as well as all local production of
cars through Netherlands Car B.V. (NedCar), and Industrie Pininfarina S.p.A. (IPF). It is also
MMC’s representative in the new joint engine plant with DaimlerChrysler (MDC Power GmbH),
currently under construction in Thuringia (Germany).
In 2002, MME sold 203,000 vehicles to its European customers. The wholly-owned MMC
subsidiary, NedCar produces locally the CARISMA and SPACE STAR. Meanwhile, IPF in Italy pro-
duces the PAJERO iO (PAJERO PININ in Europe). MME also imports the PAJERO, CHALLENGER
(PAJERO SPORT in Europe), MIRAGE (COLT in Europe), CHARIOT GRANDIS (SPACE WAGON in
Europe), and GALANT models from Japan. From Thailand, MME sources the STRADA (L200 in
Europe) pickup truck.
HOW IS THE TURNAROUND PROGRESSING IN
EUROPE?
Europe is a very demanding market with fierce com-
petition from established national manufacturers
and a high level of expectation from customers.
Initiated in November 2001, MME’s Turnaround is
aimed at building a profitable and efficient organi-
zation, creating value for its distributors and custom-
ers while building an inspiring and high profile
brand, where MMC’s Japanese roots, rich heritage,
precision engineering, sharp design and enviable
motor sports achievements will play a vital role.
To this end, MME has pared material costs and
reduced other manufacturing costs. At the same
time, we have reorganized our local subsidiaries to
increase operational efficiency. We have also imple-
mented other comprehensive measures aimed at
lowering our cost base, notably in the area of distri-
bution. Together, these cost-reduction initiatives are
projected to result in a return to operating profit-
ability in 2003.
Separately, we are also making progress in the
development of our sales network in Europe in close
cooperation with distributors and using the dynam-
ics of the new regular framework on automotive