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54
MITSUBISHI MOTORS CORPORATION Annual Report 2007
[Additional commitments for FY 2007]
• Returning into the black in domestic operations by integrating sales networks and strengthening the sales operations
• Expanding sales in new markets centering on BRICs
• Progressing in environmental technology development
(3) Targets
• Achieved net profitability in FY 2006 as targeted
• Continuing to carry out measures to sustain profitability in FY 2007
(4) Business strategy
(i) Sales volume plans
Sales plans in the “Mitsubishi Motors Revitalization Plan” have been drawn up for each region based on current market
trends to set realistic and achievable targets and eliminate all foreseeable downward risks. As a result, although fiscal
year volume targets in the new plan were originally sought to recover to the FY 2003 level of 1,500,000 vehicles in FY
2007, volume targets were revised to 1,320,000 vehicles due to lower aggregate demand in current domestic and
ASEAN markets.
(ii) Product strategy
a. Motorsports
The MMC group places Motorsports at the very heart of its car design and development activities. The technology and
experience built up through taking part in grueling and competitive events such as the Dakar Rally and the World Rally
Championship are being fed back and reflected into all production cars as the “Sporty DNA” and “SUV DNA” that
define the MMC brand. That same technology and expertise also enables increased safety and durability as well as
driving performance and the MMC group intends to further raise its product value by actively promoting these
embodied qualities.
b. Improving efficiencies in model mix
The new plan incorporates measures under which the MMC group will cut back the number of low volume models
produced for individual markets and concentrate managerial resources on highly competitive global market models.
This will raise development and production efficiencies.
c. New model launches
The MMC group has been increasing the number of new model launches since FY 2005 and will expand earning
opportunities by continuing to actively introduce new models across all regions.
(iii) Business tie-up strategy
To further promote a policy of selection and concentration, the MMC group will actively pursue strategic tie-
up opportunities with other companies. The MMC group has reached an agreement for a joint development project of
the next generation diesel engine with Mitsubishi Heavy Industries, Ltd. (MHI) and has signed a diesel engine supply
agreement with PSA Peugeot Citroën. On April 2007, the MMC group also has agreed with Nissan Motor Co., Ltd. to
expand its OEM contract scope. The MMC group continues to seek tie-ups with other companies to consider the
options such as expanding OEM arrangements, component supply partnering, joint distribution arrangements and joint
procurements arrangements.