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23
MITSUBISHI MOTORS CORPORATION
Annual Report 2005
Under the revitalization plan, MMC’s commitment is to
first increase domestic sales volume to 253,000 units in
fiscal 2005. Next, MMC aims to expand sales volume
further and achieve a return to profitability in domestic
operations earlier than planned. In fiscal 2004, domestic
net sales represented slightly less than 20% of total net
sales after a sharp decrease in sales volume last year.
However, restoring confidence in the domestic market
remains a top priority for staging a true comeback on the
global stage.
Returning to the Basics of Putting the Customer First
After a Sharp Fall in Sales
The past recall issue had a major impact on domestic
sales, resulting in severe falls in domestic sales volumes in
the first half of fiscal 2004; there were some months in
which sales volume was less than half the previous year’s
level. These declines, compounded by voluntary restraints
on advertising and sales promotions due to recall-related
issues, made it difficult for MMC to implement its domes-
tic sales strategies.
Region
«Domestic Operations»
Net Sales
(¥ billion)
Unit Sales
(Thousand units)
0
100
200
300
400
500
600
05 06 07 08 05 06 07 08
0
50
100
150
200
250
300
Plan*
05 06 07 08
Plan* Plan*
–100
–80
–60
–40
–20
0
Business Strategies
“Our Bond With the Customer” Is a Key Asset
In 2004, MMC suffered sharp falls in sales volume due to a loss of trust
caused by the past recall issue. In this climate, we returned to the basics of
putting the customer first. We offered a free inspection program for all MMC
vehicle owners. Building on the relationships with 3.4 million customers
reestablished through this inspection program, we will continue to restore
customer confidence and maximize the after-sales business. Positioning
fiscal 2005 as the inaugural year of a drive to promote after-sales services,
MMC is committed to these services. Efforts will also be made to improve
earnings by actively launching long-awaited new models.
Fujio Cho
Managing Director
In Charge of Domestic Operations Group Headquarters
Operating Loss
(¥ billion)
*MMC revised its targets for fiscal 2005 when it released its fiscal 2004 full-year financial results on May 23, 2005. Targets
for fiscal 2006 onwards are those announced in the Mitsubishi Motors Revitalization Plan on January 28, 2005.