Mitsubishi 2006 Annual Report Download - page 22

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20 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
Enhancing Domestic Operations and Achieving a Turnaround in the U.S.
Q: The success of the revitalization plan hinges on improving
MMC’s competitiveness in Japan and the U.S. market. What
initiatives will be taken in each market?
<Managing Director Cho>
Currently, the domestic operations group is striving to surpass a retail sales target of 300,000 units, and
restore the overall profitability of dealerships in fiscal year 2006. Three new models will be rolled out. At the
same time, to maximize the benefits from these new models, MMC is taking initiatives together with sales
companies to raise the number of customers visiting dealerships and to reinforce customer service. For
instance, MMC is holding the
Hello Kitty Campaign
based on the popular character Hello Kitty in collaboration
with Sanrio Company, Ltd. This campaign is already delivering benefits, helping to increase the number of
women and families with small children visiting dealerships. From April to June 2006, customer traffic at
dealerships rose by 30% year on year. There was also a large improvement in the contract completion rate for
new car sales at dealerships as a result. Looking ahead, we believe that making Mitsubishi Motors a more
familiar brand among customers, especially women, will be vital to winning back customer confidence.
Furthermore, MMC will continue to press ahead with cost cutting through rationalization measures, while
striving for stable growth in revenues from used car sales and after-sales services.
Q: Next, could MMNA CEO Harunari please explain initiatives
in the U.S.?
<MMNA CEO Harunari>
During my fact-finding visits to dealerships in the U.S., many dealers expressed concerns over the possible
withdrawal of MMC from the U.S. market. However, 2006 marks MMC’s 25th year of business in the U.S.,
and as of March 2006, we had sold a cumulative 4.2 million vehicles locally with 2.8 million of these vehicles
currently still in use. I was officially dispatched to the U.S. in January 2006 to drive home MMC’s strong
commitment to supporting U.S. operations with the full resources of the company. This commitment includes
raising customer satisfaction, and working with dealerships to profit together with them. I’m striving to convey
this message to customers and dealers and to ensure that we act on our commitment.
Top Management Interview 2
Top Management Interview 2