Mitsubishi 2007 Annual Report Download - page 25

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23
Regional Topics—North America
income improved ¥7.8 billion to a profit of ¥0.6 bil-
lion. Improved profitability in U.S. financial services
operations substantially lifted earnings.
*Includes Canada, Mexico and Puerto Rico
Initiatives in Fiscal Year 2007
In fiscal year 2007, MMC is targeting retail sales
of 176,000 units. This target is based on the launch
of new models and a stronger Mitsubishi brand,
underpinned by ongoing efforts to strengthen the
sales capabilities of dealerships.
In fiscal year 2006, the new
Outlander
and
Lancer
models went on sale. This was followed by the start
of a full-scale sales drive for the new
Lancer
model
in April 2007. Supported by a strong customer re-
sponse to this product’s features, the new
Lancer
has made a particularly strong start. MMC intends
to accelerate the pace of sales of this model through-
out fiscal year 2007. Furthermore, in the second
half of fiscal 2007, MMC will roll out the new
Lancer
Evolution
, the culmination of all of its cutting-edge
technologies, in a move that will reinforce the
Mitsubishi brand.
Active sales promotion and advertising are also
planned. By significantly increasing targeted media
exposure for mainstay models in primary markets,
we aim to more efficiently increase customer traffic
at dealerships and achieve other goals. Through these
and other measures, we seek to grow retail sales by
strengthening sales support for dealerships.
From the outset of 2007, MMC has been record-
ing steady growth in sales in North America. Despite
a slight drop in total automobile demand in the U.S.,
MMC reported steady year-on-year growth of 21%
in cumulative retail sales from January to June 2007.
Both the new
Outlander
and
Lancer
models have
been strong sellers in Canada as well. Retail sales
have increased by a substantial 52% year on year
as a result.
Meanwhile, MMC continues to implement cost re-
ductions at the Illinois Plant, its U.S. manufactur-
ing base. At the same time, we will more actively
develop the export business launched in July 2006
with the aim of increasing capacity utilization. Efforts
to grow exports are focused on opening up new ex-
port markets such as Latin America, and boosting
exports that have already commenced to Russia and
the Middle East.
In fiscal year 2007, MMC is targeting exports of
approximately 10,000 units, up around 20% from
the previous fiscal year.
Outlander Lancer
Models sold in North America