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82
MITSUBISHI MOTORS CORPORATION Annual Report 2007
Since the entities combined are consolidated subsidiaries in the automobiles segment, their transactions are
treated as transactions under common control. Thereby the combined entities’ transactions are properly accounted for
based on appropriate book values in the stand-alone accounts and are properly eliminated as inter-company transac-
tions in the consolidated accounts. Moreover, there are no additional acquisitions of shares from minority interests of
the entities combined.
24. Subsequent Event
In January 2007, the MMC group announced the accelerated reconstruction of its domestic sales network, in order to
obtain top class customer satisfaction in the industry as well as to improve profitability. The MMC group will merge
domestic sales companies into 5 companies and parts sales companies into 1 company as follows.
March 31, 2007
Hokkaido area: Hokkaido Mitsubishi Motors Sales Co., Ltd., Sapporo Mitsubishi Motors Sales Co., Ltd., Asahikawa
Mitsubishi Motors Sales Co., Ltd., Sorachi Mitsubishi Motors Sales Co., Ltd., Iwamizawa
Mitsubishi Motors Sales Co., Ltd.
Higashi-Nihon area: Iwate Mitsubishi Motors Sales Co., Ltd., Fukushima Mitsubishi Motors Sales Co., Ltd., Gunma
Chuo Mitsubishi Motors Sales Co., Ltd., Tochigi Mitsubishi Motors Sales Co., Ltd.
Kanto area: Minami Ibaragi Mitsubishi Motors Sales Co., Ltd., Tokyo Mitsubishi Motors Sales Co., Ltd.,
Saitama Mitsubishi Motors Sales Co., Ltd., Kanagawa Mitsubishi Motors Sales Co., Ltd.,
Yamanashi Mitsubishi Motors Sales Co., Ltd., Matsumoto Mitsubishi Motors Sales Co., Ltd.
Chubu area: Aichi Chuo Mitsubishi Motors Sales Co., Ltd., Nagoya Mitsubishi Motors Sales Co., Ltd., Gifu
Mitsubishi Motors Sales Co., Ltd., Ishikawa Mitsubishi Motors Sales Co., Ltd.
Nishi-Nihon area: Kinki Mitsubishi Motors Sales Co., Ltd., Sanin Mitsubishi Motors Sales Co., Ltd., Okayama
Mitsubishi Motors Sales Co., Ltd., Hiroshima Chuo Mitsubishi Motors Sales Co., Ltd., Shin-
Yamaguchi Mitsubishi Motors Sales Co., Ltd., Ehime Mitsubishi Motors Sales Co., Ltd., Nagasaki
Mitsubishi Motors Sales Co., Ltd., Miyazaki Chuo Mitsubishi Motors Sales Co., Ltd., Kagoshima
Chuo Mitsubishi Motors Sales Co., Ltd.
Consolidated Parts
Sales Subsidiaries:
The merger will be handled as transactions under common control according to
Accounting Standard for Business
Combinations
(Business accounting Council, October 31, 2003), and
Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures
(ASBJ Guidance No.10, December 27, 2005).
Consolidated sales companies located in the Hokkaido area have merged on April 1, 2007 with the Hokkaido
Mitsubishi Motors Sales Co., Ltd., being the surviving entity. For the sales companies and parts sales companies
located other than in the Hokkaido area, the mergers are planned to take place on July 1, 2007. Accordingly, for all the
above domestic sales and parts sales companies except for those in the Hokkaido area, retirement costs are expected
to be incurred due to voluntary retirements.
Hokkaido Mitsubishi Motors Parts Sales Co., Ltd., Tohoku Mitsubishi Motors Parts Sales Co.,
Ltd., Kita Kanto Mitsubishi Motors Sales Parts Co., Ltd., Shinetsu Mitsubishi Motors Parts
Sales Co., Ltd., Kanto Mitsubishi Motors Parts Sales Co., Ltd., Hokuriku Mitsubishi Motors
Parts Sales Co., Ltd., Chugoku Mitsubishi Motors Parts Sales Co., Ltd.