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Annual Report 2005
4
MITSUBISHI MOTORS CORPORATION
We were elected by the Board of Directors on January 28, 2005 to take over the revitalization of Mitsubishi Motors
Corporation from the former management. Our first task was to formulate the new Mitsubishi Motors Revitalization Plan,
which was announced on the same day.
Our immediate predecessors steered Mitsubishi Motors through one of the most difficult periods of its history, and in
doing so cast off the negative legacy of the past and drew up a roadmap for restoring confidence in the company. The
task we face now is to make a collective effort as a group to nurture Mitsubishi Motors into a success story on the ground
prepared by the former management.
We took the final steps toward resolving past recall problems on March 30, 2005, with the submission of our final
response to a warning issued by Japan’s Ministry of Land, Infrastructure and Transport and the filing of a claim for compensa-
tion for damages against certain former management in place at the time the problems occurred. We want to use this
opportunity to thank everyone for their support during these trying times. Without your understanding, Mitsubishi Motors would
have been unable to make a fresh start.
The various challenges faced by management during the past eighteen months affected our business results for the
fiscal year ended March 31, 2005. Consolidated net sales fell 15.8% from the previous fiscal year to ¥2,122.6 billion.
We reported a net loss of ¥474.8 billion, due in large part to a ¥289.8 billion extraordinary loss related to impairment of
production facilities, a move directed at lowering future cost outlays. Regarding our financial position, we made capital
enhancements of ¥496.0 billion in June and July 2004 and an additional ¥284.2 billion in March 2005. In doing so,
we shored up shareholders’ equity and restored financial soundness, and secured the funds required to finance our
future business plans.
We are now making concerted efforts to win back customer confidence, restore our corporate value, and once again
make Mitsubishi Motors a firm that is held in the highest esteem by all stakeholders. To meet the targets of the Mitsubishi
Motors Revitalization Plan, as our commitment to stakeholders, we promise to implement the measures outlined below:
1. Put the highest priority on customers to win back their confidence
A “customer first” policy now guides all operations, from development and manufacturing to sales and after-sales
service. The most urgent issue is to supply customers with vehicles of the highest quality through the unrelenting
pursuit of quality enhancement.
2. Restructure production and sales networks based on a conservative business plan
The Mitsubishi Motors Revitalization Plan includes a sales plan that incorporates downside risks. We will no longer
pursue the over-extended growth strategies of the past. By steadily reinforcing our competitive strengths while maintain-
ing an optimal scale of operations, we aim to increase our corporate value.
3. Strengthen business execution
We will build a framework that assures steady implementation and verification of business plans. By integrating our organiza-
tion into eight divisions, or “headquarters,” we have clarified responsibility for each MMC function. We will make sure that
we achieve the goals of the Mitsubishi Motors Revitalization Plan by requiring each division to deliver on its commitments.
In April 2005, we established the Business Revitalization Monitoring Committee, an advisory body to the Board of
Directors. The committee is monitoring progress toward the goals of the Mitsubishi Motors Revitalization Plan from an
external perspective.
The first year of the Mitsubishi Motors Revitalization Plan has already seen several positive developments, including
the announcement of plans to develop a next-generation electric vehicle and launch new models in the domestic and
overseas markets. There has been a marked change in the mindset of employees, and through our achievements, one by
one, we have already been able to feel an effect. Looking ahead, all employees will continue to make unified and
concerted efforts to improve corporate value, with the aim of ensuring that MMC carves out a distinctive niche for itself
in the face of global competition. Through these and other efforts, we are confident of charting a course that leads to the
revitalization of Mitsubishi Motors.
September 2005
TO OUR SHAREHOLDERS AND STAKEHOLDERS