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27 MITSUBISHI MOTORS CORPORATION
spin-off also brings significant benefits for MMC’s pas-
senger car operations. The participation of DC and the
Mitsubishi group companies has provided MMC with
greater financial flexibility. This also provides extra trac-
tion for the ongoing Turnaround in passenger car
operations by boosting the ability to invest in new model
development. To sum up, the spin-off allows all those
working at MMC to focus on passenger cars, while MFTBC
can concentrate on truck and bus operations. This
increased specialization at both companies will allow
both to respond more rapidly and flexibly to changes in
their respective markets, and also means that the sepa-
rate efforts to promote each brand can be far more
effective. In a single move, it enables both companies to
shift their strategies for growth up a gear. The result will
be increased sales and profits on both sides, sooner than
previously planned.
WHAT IS THE GLOBAL POSITION OF MFTBC? WHAT
STEPS ARE YOU CONSIDERING TO BUILD ON THE
RECENTLY ENHANCED RELATIONSHIP WITH DC?
The Japanese market for trucks and buses remains in a
long-term slump. Total demand is now little more than
half what it was in 1990 in volume terms. Mitsubishi FUSO
trucks have succeeded in maintaining their global com-
petitiveness throughout this huge decline. The Asian mar-
ket outside Japan has been a major success story for us.
Mitsubishi FUSO trucks are well-positioned to maintain their competitiveness in Japan and global markets.
This market now accounts for roughly half of global
demand, and MFTBC is the market leader, with a share of 24%.
If we are to maintain our market leadership in Japan and
the rest of Asia, I believe that we need to leverage the
commercial benefits of our relationship with DC in a
variety of areas. This means reducing material costs
through joint procurement programs; radically reducing
the time and costs absorbed in development by pooling
our resources; and focusing development on creating the
products that will boost our long-term competitiveness.
In terms of the practical commercial benefits that we are
currently studying with DC, we are looking at standard-
ization of engines and components for medium- and
heavy-duty trucks. We are also cooperating extensively
on the development of technologies designed to comply
with the various exhaust gas and other environmental
regulations being introduced in Europe and Japan.