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25
MITSUBISHI MOTORS CORPORATION
Annual Report 2005
Business Strategies
Dealerships are being renovated and redesigned based on a corporate
identity design to create a favorable impression.
Launch of New Vehicles
MMC plans to launch two long-awaited new vehicles in the
second half of fiscal 2005:
Outlander
and
i
.
Outlander
is
an all-new SUV powered by a new 2.4-liter aluminum
block engine. While
Outlander
offers SUV-grade durability,
it also presents unparalleled on-road driving performance,
sporty looks and flexible utility not found in traditional
SUVs. This new model promises to attract not only
existing SUV drivers, but also sedan and minivan drivers
seeking to replace their vehicles. On the other hand,
i
, an
innovative, new-age minicar, is the first Mitsubishi Motors
model to employ a midship engine layout. With this new
model, MMC is targeting not only minicar users, but
replacement demand from compact car owners as well. In
addition, MMC is counting on the attractive
i
model to
play an instrumental role in appealing to female custom-
ers, who reacted most acutely to the recent spate of
quality issues.
Building an Optimal Sales and Service Structure to Put
Customers First
To stabilize and improve operating profitability, MMC will
reestablish an optimal sales network. As of July 1, 2005,
the company’s sales network consisted of 164 dealer
companies and 861 locations. Based on longstanding
relationships of trust, MMC seeks to maintain relation-
ships and spur on the development of successful indepen-
dent sales companies. Meanwhile, MMC will realign its
network of consolidated (company-owned) sales compa-
nies by closing and integrating dealerships to broaden
their coverage areas, while making every effort to shed
costs and expand sales. MMC is also seeking to consoli-
date and broaden the coverage of its network of domestic
auto-parts sales companies, which currently consists of 13
companies in 63 locations.
However, MMC will still require at least 800 dealerships
to provide adequate after-sales services to owners of
Mitsubishi vehicles. Decisions will be made carefully, while
keeping a close eye on future trends in sales volume.
iOutlander