Mitsubishi 2005 Annual Report Download - page 13

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MITSUBISHI MOTORS CORPORATION
Annual Report 2005
New Management and Organizational Structure
The Mitsubishi Motors Revitalization Plan: Toward Revitalization
CSR Headquarters Finance Group Headquarters
Corporate Planning, Corporate Affairs
& Quality Affairs Group Headquarters
Product Development &
Environmental Affairs Group Headquarters
Production Group Headquarters Global Procurement Group Headquarters
Domestic Operations Group Headquarters Overseas Operations Group Headquarters
Measures implemented by each headquarters
Mitsubishi Motors Revitalization Plan
Business Revitalization Monitoring Committee
Checking from an
external perspective
Board of Directors Advice and reports
Business Ethics Committee
2. A Highly Credible Business Strategy
■Business plans fully reflect downside risks
■Proactive alliances with other automakers
■Removal of excess production capacity and restruc-
turing of sales systems (U.S., Australia, and Japan)
MMC’s sales volume targets incorporate many risk factors
such as a larger effect from the recall issue in Japan, a
slow recovery in North America, and a slowdown in the
Chinese market. In this manner, MMC has set conserva-
tive sales volume targets that are achievable.
Furthermore, MMC is taking appropriate measures to
deal with overcapacity in production and sales networks. In
Japan, MMC has been integrating its network of vehicle
sales subsidiaries and auto-parts sales companies to
achieve greater geographical efficiency. Overseas, substan-
tial headcount reductions have already been implemented
at plants in the U.S. and Australia. In parallel, the
company has reduced its shifts from two to one in these
countries and has booked impairment losses. Meanwhile,
MMC has been pursuing opportunities to form strategic
alliances with other automakers to raise plant utilization.
In addition to ramping up the OEM supply of minicars to
Nissan Motor Co., Ltd., MMC has officially signed an
agreement with PSA Peugeot Citroën on supplying a new
SUV model on an OEM basis. MMC will continue to
examine all possibilities for business alliances. These
include expanding the range of models supplied on an
OEM basis, mutual supply of components, and joint
logistics and purchasing of components.
3. Strengthen Business Execution and Establish
Monitoring Functions
■
Adopt a new management and organizational structure
■Build a framework for thorough follow up
On April 1, 2005, MMC adopted a new management and
organizational structure to ensure that the targets of the
Mitsubishi Motors Revitalization Plan are achieved.
Under the new organizational structure, operations are
concentrated in eight divisions, or “headquarters,” to
unify chains of command and clarify accountability. The
eight headquarters are CSR; Finance; Corporate Planning,
Corporate Affairs & Quality Affairs; Product Development
& Environmental Affairs; Production; Global Procurement;
Domestic Operations; and Overseas Operations.
A framework for following up on progress has also been
built. MMC has appointed an executive vice president
responsible for promoting revitalization and established the
Revitalization Promotion Department, as internal checking
functions. In addition, MMC created the Business
Revitalization Monitoring Committee, an external body that
monitors progress toward the goals of the Mitsubishi
Motors Revitalization Plan. Acting as an advisory body to
the Board of Directors, the committee comprises outside
experts as well as representatives from three Mitsubishi
group companies (Mitsubishi Heavy Industries, Mitsubishi
Corp., and The Bank of Tokyo-Mitsubishi). The committee
will monitor progress being made toward achieving the
goals of the Mitsubishi Motors Revitalization Plan from an
external perspective. In addition to offering necessary
advice, it will also submit reports and proposals in
response to specific requests by the Board.