Mitsubishi 2004 Annual Report Download - page 5

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3
additions completed our new management team that is committed to the revitalization of Mitsubishi Motors and tak-
ing the first major step forward in the greatest challenge Mitsubishi Motors has ever faced.
OVERCOMING A MANAGEMENT CRISIS
We achieved a majority of the targets in the Turnaround Plan, which was formulated when DaimlerChrysler had control
over management, a year ahead of schedule. Unfortunately, our corporate governance efforts were insufficient to pre-
vent losses at financing subsidiaries in the United States, leading to a significant shortfall from targets. Mitsubishi
Motors cannot afford to waste time. At this critical juncture, we are highly motivated to achieve the targets in the
Business Revitalization Plan.
Recent operating conditions have been considerably challenging. The recall problem has regrettably increased the
likelihood of Mitsubishi Motors falling short of its domestic sales projections in the current fiscal year. To compensate
for this potential shortfall in sales, on June 16 we announced an additional ¥34.4 billion in cost reduction measures.
Overseas, sales volume is increasing in markets such as Russia, the Middle East and South America, so we are not
changing our targets in the Business Revitalization Plan. There is always the possibility of unforeseen changes in the
operating environment, and these changes could be positive or negative for Mitsubishi Motors. Nevertheless, we must
achieve our revitalization targets and place the Company within reach of attaining profitability on a net income basis by
fiscal 2006.
CONCERNING THE RECALL PROBLEM
I am prepared to do whatever it takes to obtain a full accounting of our handling of recalls in the past. It is clear that we
should have analyzed and reflected on why these incidents of concealing recalls happened in 2000 and that measures
should have been implemented to prevent future recurrence of these incidents. Investigations conducted in 2000 were
BUSINESS ETHICS COMMITTEE
Made up of external experts Meeting of the Board of Directors
Chairman of the Board (CEO)
President (COO)
Executive departments
REVITALIZATION COMMITTEE
Company appoints external investor*
to chair Revitalization Committee
“Toward rebuilding trust”
“Bold implementation of
Business Revitalization Plan”
*Phoenix Capital
NEW MANAGEMENT ORGANIZATION