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31
MITSUBISHI MOTORS CORPORATION
Annual Report 2005
Business Strategies
■ ASEAN
A Strong Presence in the ASEAN Region
Over the years, MMC has expanded business in the ASEAN
region while contributing to the region’s industrial develop-
ment by actively pursuing local production in addition to
finished vehicle sales. Against this background, the
Mitsubishi brand enjoys a strong reputation in the region.
For instance, our Thailand plant serves as a production and
export base for the supply of one-ton pickup trucks not only
to the domestic market but also to the rest of the world.
The plant is a significant source of earnings for MMC.
Preserving MMC’s strong presence and reinforcing
operations in the ASEAN region are key initiatives of the
revitalization plan.
Efforts to Cultivate New Markets Gain Momentum
In fiscal 2005, MMC is targeting sales of 227,000 units
in the ASEAN region.
In Thailand, the company is working to bolster sales
units and partnerships with local sales companies
following the appointment of a new local management
team in 2004. In light of strong operations at the
Thailand plant, where cumulative exports reached
700,000 units in February 2005, MMC is ramping up
production capacity together with the full model change of
the one-ton pickup truck in August. With this step, MMC
has put in place a framework for the plant to serve as a
core production facility.
To expand sales of Mitsubishi-brand vehicles in
Malaysia, MMC has established a new sales company in
collaboration with Mitsubishi Corporation. Operations at
the company have already begun.
MMC has also built a strong presence in Indonesia,
Vietnam and other countries through local production.
The company will work to retain its solid stature in
these countries.
■ Other Regions
In fiscal 2005, MMC is targeting sales of 221,000 units
in other regions.
In Australia, where overcapacity was an issue, MMC
restructured production facilities and capacity to a proper
scale by reducing the workforce by approximately 1,310
employees, and closing an engine plant in fiscal 2004.
Triton Mega Cab
A new one-ton pickup truck produced in Thailand (two-door model).
380
Launched in October 2005, a new luxury sports sedan produced in Australia.
The company also booked substantial impairment losses.
In fiscal 2005, the company will launch the
380
, a new
local production model, with the aim of expanding sales
and maintaining earnings.
MMC also views Latin America, the Middle East and
Africa as an important source of earnings. The company is
conducting close-knit marketing tailored to these markets
utilizing leading local companies and trading companies.
MMC’s goal is to expand sales by gaining access to strong
markets as well as new markets. It is raising its presence to
build a sound base for growth in the future. In specific
terms, MMC will promote local production of KD (knock-
down) units of SUVs and other mainstay vehicle models in
Brazil, utilize new sales companies in Pakistan and else-
where, work to win large orders in African markets and take
other actions to expand business and achieve its goals.