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Annual Report 2005
52
MITSUBISHI MOTORS CORPORATION
(2) Key points in the Mitsubishi Motors Revitalization Plan
•Putting customers first/Recovering trust
•The new plan puts customers first in all areas, from marketing through after-sales services
•The new plan provides measures for achieving no-compromise improvements in product quality
•Business strategy
• Sales plans reflect downside risks
•Promotion of operational tie-ups with other automakers
• Rationalization of production capacity and size of sales networks (U.S., Australia, Japan)
• Reinforcement of capital and funding
• Strengthening of financial standing and securing capital for revitalization
•Boosting management’s effectiveness
•Lead from the top with a new management team
•Set up a thorough follow-up system
(3) Targets
• Recognition of profit in fiscal 2006 (net income of ¥8 billion ($74 million))
• Establish sustainable profitability in fiscal 2007 (net income of ¥41 billion ($381 million))
(4) Business strategy
(i) Sales volume plans
Sales plans in the Mitsubishi Motors Revitalization Plan have been drawn up for each region based on current
market trends to set realistic and achievable targets and eliminate all foreseeable downward risks. As a result, fiscal
year volume targets in the new plan are lower than those in the Business Revitalization Plan but are set to recover to
the fiscal 2003 level of 1,500,000 vehicles in fiscal 2007.
(ii) Product strategy
A.MOTORSPORT
MMC group places motorsport at the very heart of its car design and development activities. The technology and
know-how built up through taking part in grueling and competitive events such as the Dakar rally and the World Rally
Championship is being fed back and injected into production cars as the “Sporty DNA” and “SUV DNA” that define
the MMC brand. That same technology and know-how enable MMC group to increase safety and durability as well as
on and off-road driving performance, thereby raise product value in a lineup that fully embodies these qualities.
B.IMPROVING EFFICIENCIES IN MODEL MIX
The new plan incorporates measures under which MMC group will trim back the number of low-volume models
produced for individual markets and concentrate managerial resources on highly competitive global market models.
This will raise development and production efficiencies.
C.NEW MODEL LAUNCHES
The new plan calls for a major increase in the number of new model launches compared with the last four years.
MMC group will expand earning opportunities by aggressively introducing new models in all regions.