Mitsubishi 2004 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2004 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 74

  • 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
  • 71
  • 72
  • 73
  • 74

Company is making to offer its customers innovative automobiles embodying Mitsubishi Motors’ DNA.
The second is a right-sizing of the product lineup. To revitalize the Company through effective plan implementa-
tion, not only is moral discussion essential but also the establishment of a product lineup based on analyses that boldly
confront reality. Plans to consolidate the numbers of platforms from the current 15 to 6 by fiscal 2010 have already
been announced, but this is just one of the vital measures in the lineup right-sizing process. Thoroughness in develop-
ments that emphasize the views of both the customer and the market will lead to the Company having an appropriate
product lineup. This will drastically improve long-term quality, cost and product appeal.
REGIONAL STRATEGY
In Japan, every effort must be made to regain customer confidence lost by the adverse publicity surrounding product
recalls. Since I took up the post of president, my roving visits to sales companies all over the country have placed me
directly on the sales front-line, where I can hear things first hand. Henceforward, opinions from sales showrooms will
be listened to very carefully, and customers and a sales infrastructure that directly serves them built up. While making
every effort to become profitable, we are also committed to strengthening our sales force in preparation for the progres-
sive introduction of new models planned to start in the second half of fiscal 2005.
Overseas, the Company is remorseful that, in the past, the governance shown by its headquarters has not been
effective enough. Together with the acceptance of unequivocal responsibility for each overseas operation, it has initiated
a raft of changes to their management systems. Henceforward, to correct the past biased way of thinking that tried to
secure vehicle numbers in North America and Japan, the global regional portfolio will be restored to health by actively
injecting operational resources into key regions, including China.
The above has drawn attention to one aspect of the Company’s thoughts and actions regarding its own revitaliza-
tion, seen from the operational perspective. Another will be suggestions from the CFTs that, representing a
cross-section of departments and with young members at their heart, are making a start with a plan of action using revi-
talization committee meetings. It is expected that bold, innovative ideas based on local input will arise from them. As
head of administration, I have shown you all the plans that will unfailingly be brought to fruition and the urgent
reforms that the Mitsubishi Motors of old was incapable of implementing.
Achieving the Company’s revitalization from within, I promise to make our MITSUBISHI MOTORS brand one
that boldly looks toward the future and humbly extend my good wishes.
HIDEYASU TAGAYA
President and COO 7
Reduction of production capacity –17% FY 2006
Reduction of indirect labor –30% FY 2006
(7,600/FTE)
Reduction of material costs –15% FY 2006
Platform consolidation 15/6 FY 2010
Numerical target Achievement
time frame
COST STRUCTURE REFORMS