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08 mitsubishi motors corporation annual report 2008
Step Up 2010
Positioning of the New Mid-term Business Plan and
Numerical Targets
Our new mid-term business plan, Step Up 2010, is posi-
tioned as the next stage for building the foundations of
growth for the future.
Step Up 2010 calls for MMC to speed up efforts to address
issues that have become apparent so far, such as environmental
issues and the need to improve earnings in Japan and North
America. In addition, we must also redress the imbalance between
demand and production capacity for specific models, as well as
improve capacity utilization. Our basic policy for addressing these
issues is to balance the two priorities of bolstering our strengths in
each business unit and securing steady profit. Over the next three
years, we will construct the solid operating base necessary for
sustainable growth in the future.
In Step Up 2010, we are targeting net sales of ¥2,760.0
billion, operating income of ¥90.0 billion, ordinary income of
¥71.0 billion and net income of ¥50.0 billion for fiscal year
2010. We recognize that these numerical targets will not be
easy to achieve if the business environment remains challeng-
ing in terms of high raw materials prices, a strong yen and no
prospects for market expansion in industrialized nations. Still,
we are confident that we can meet the plan’s targets and set
the stage for sustainable growth in the future.
Step Up 2010: Key Initiatives
In Step Up 2010 we are focusing on the following key initiatives,
based on our two priorities of bolstering our strengths and securing
steady profit:
First, we have positioned emerging markets expected to see
greater demand, including Russia, the Ukraine, the Middle East
and Brazil, as “focus” markets. In these areas the MMC brand is
already strong, and we will reinforce our sales base by launching
products leveraging the company’s strengths. At the same time, in
mature markets where substantial growth in new vehicle sales
cannot be expected, such as Japan, North America and Western
Europe, we are taking steps to improve and strengthen the profit
structure by increasing the efficiency of sales networks and
upgrading after-sales services and peripheral operations.
Next, we are pursuing greater global production efficiency in
line with our sales strategy and bolstering our ability to supply
high-demand models. Additionally, as an automaker, we see grow-
ing environmental awareness around the world as a significant
business opportunity. We believe that we can contribute to society
through the environmental application of practical technologies,
which are MMC’s forte.
Furthermore, we are investing aggressively to secure this foun-
dation for sustainable growth. Our capital investment program is
structured to make effective use of existing assets while achieving
maximum benefits. Our R&D activities are focused on enhancing
distinctive MMC technologies and further developing environ-
mental technologies.
Positioning of New Mid-term Business Plan (FY08-FY10)
FY2005 - FY2007 FY2011FY2008 FY2010FY2009
Restore earnings
Regain trust
Stepping up to the
next stage
Revitalization Plan:
Building Solid Profitability
Step Up 2010:
Building the Foundations of Growth
Support from three Mitsubishi Group companies Continuing and enhancing CSR activities
Bolstering our strengths Securing steady profit
Sustainable Growth
• Restore earnings in Japan and North America
• Environmental initiatives
• Improving global production efficiency to
meet fluctuating demand