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MITSUBISHI MOTORS CORPORATION Annual Report 2007
24
0504 06 07
0
200
400
600
800
(FY)
Plan*
0504 06 07
0
10
20
30
40
50
(FY)
Plan*
0504 06 07
0
100
200
300
400
(FY)
Plan*
Europe
Mitsubishi vehicles have won high marks in Euro-
pean markets for their attractiveness and perfor-
mance and MMC’s strong track record in motor sports
events such as the Dakar Rally. With sales volume
steadily growing in rapidly expanding Russia, the
Ukraine, and Central and Eastern Europe, MMC has
established a stable revenue structure across the
entire European market.
Overview of Fiscal Year 2006
In fiscal year 2006, retail sales in Europe totaled
282,000 units, an increase of 5.6% year on year.
By country, steady growth in retail sales in Rus-
sia and the Ukraine helped to lift overall retail sales
throughout Europe, making up for falling retail sales
in Germany and the U.K. In Russia, retail sales more
than tripled to approximately 70,000 units in fiscal
year 2006, marking extremely fast growth in three
years from about 20,000 units in fiscal year 2003.
Sales were also up sharply in the Ukraine, doubling
from the previous fiscal year to 16,000 units in fis-
cal year 2006.
By model, the compact
Lancer
sedan has contin-
ued to achieve strong sales. The successive roll-out
of the Thai-built
L200 (Triton)
one-ton pickup truck,
followed by the new
Outlander
and
Pajero
(
Montero
or
Shogun
in some markets) SUVs in the second half,
also made substantial contributions to sales.
As a result, in fiscal year 2006, sales in Europe
increased 13.1% year on year to ¥662.8 billion and
operating income rose ¥18.2 billion to ¥42.6 billion.
Diesel engines are in strong demand in Europe,
where there is considerable public interest in reduc-
ing CO2 emissions. Currently, MMC procures a fam-
ily of 2-liter class or smaller diesel engines from
external sources. However, MMC and Mitsubishi
Heavy Industries, Ltd. are jointly developing 2-liter
class next-generation clean diesel engines. With de-
velopment progressing steadily, we plan to bring for-
ward mass production by one year to begin supplying
these engines in Europe first from early 2009, in
order to meet projected growth in the region.
Initiatives in Fiscal Year 2007
In fiscal year 2007, MMC is targeting European
retail sales of 316,000 units. This target is based
on sales of a strengthened lineup of SUV models
such as the new
Outlander
and
Pajero
, which moved
into full swing in the second half of fiscal year
2006, the launch of the new
Lancer
sedan and
stronger overall sales activities in this area.
The new
Outlander
went on sale in Europe in
February 2007, and sales of this model are steadily
growing. By expanding sales of an enhanced SUV
model lineup, including the new
Pajero
and
L200
(Triton)
, we aim to strengthen our presence in the
European market.
Net Sales
(¥ billion)
Operating Income
(¥ billion)
Retail Sales
(Thousand units)
*MMC revised targets for fiscal year 2007 when it released fiscal year 2006 full-year financial results on April 26, 2007.