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9
MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
<Managing Director Ichikawa>
Financial risk controls focused on factors such as exchange and interest rates will also be critical to achieving
bottom-line profitability while remaining profitable at the operating level. We will therefore be carefully man-
aging operations with a close eye on these controls.
Q: Cost reductions, such as curbing materials costs, are just
as crucial to restoring profitability as improving sales. How
is MMC progressing on this front?
<Executive Vice President Kasugai>
Curbing material costs is no easy feat, considering escalating materials prices worldwide. To realize further
cost reductions, we must reinforce cost countermeasures from the design stage by strengthening relation-
ships with trading partners. We have established a materials cost reduction committee in conjunction with
making materials cost-reduction activities traditionally undertaken by procurement departments a company-
wide initiative from fiscal year 2006. Progress toward cost-reduction targets is being monitored at a company-
wide level worldwide.
Cost reductions also have a bearing on our product strategies. We have reduced the number of cost ineffi-
cient regional models and increased the number of global strategic models. Thailand is MMC’s hub for
exporting one-ton pickup trucks to more than 160 countries around the world. The new
Triton
, which entered
production in August 2005, is positioned as a global strategic vehicle, and was launched in Europe as the new
L200
in March 2006; it has won strong customer support. In fiscal year 2006, MMC will export three new
models,
Outlander
,
Pajero
(
Montero
in some markets)
and
Lancer
, from Japan to overseas markets as global
strategic models.
<President Masuko>
Triton (L200)
features an innovative, rounded design
that has proven highly popular in Europe. It also
enjoys strong support from women.
Top Management Interview 1
L200
Top Management Interview 1:
Progress in the Revitalization Plan and Restoring Trust