Mitsubishi 2009 Annual Report Download - page 18

0 100
09
08
07
06
440.0
398.4
488.5
506.0
200 400 500 600
300
(Forecast)
–50 –40
09
08
07
06
19.0
–15.1
–18.9
–43.8
–30 0 10 20
–20 –10
(Forecast)
0 50
09
08
07
06
195
168
219
247
100 200 250
150
(Forecast)
Net Sales
Operating Income (Loss)
Retail Sales
(FY)
(FY)
(FY)
(¥ billion)
(¥ billion)
(Thousand units)
Regional Topics
Fiscal Year 2008 Performance
Retail Sales
Retail sales in Japan dropped 23% year on year to 168,000
units. In Japan, MMC aimed to increase sales through the intro-
duction of new minicar series such as the Toppo in September
2008, and the Galant Fortis Sportback in December. However,
these factors were unable to compensate for lower retail sales
due to the sharp decline in demand from the second half of the
fiscal year.
Net Sales and Operating Income (Loss)
Sales in Japan declined 18% year on year to ¥398.4 billion.
Despite lower sales volume, the operating loss shrunk ¥3.8
billion from the previous year to ¥15.1 billion. This improvement
reflected rigorous cost reductions undertaken as part of emer-
gency measures and business restructuring focused on the
integration of consolidated sales companies in Japan.
Outlook for Fiscal Year 2009
Retail Sales
In fiscal year 2009, MMC is targeting domestic retail sales of
195,000 units, or an increase of 16% year on year. This target is
based on anticipated benefits from new vehicle purchase subsi-
dies, including governmental scrap incentives, and emergency
economic stimulus measures in the form of reduced taxes on
eco-friendly cars.
• New Products
Market Launch of the i-MiEV
MMC launched the new-generation electric vehicle i-MiEV in
Japan in July 2009. In fiscal year 2009, MMC expects to sell
approximately 1,400 units, mainly to corporate users and
local governments.
Market launch of the new-generation electric vehicle i-MiEV. MMC aims to restore profitability
through higher retail sales volumes and rigorous cost reductions.
In fiscal year 2008, the collapse a major of U.S. financial institution in the second half touched off a global
economic downturn of unparalleled speed, breadth and depth, and automobile retail sales volumes in mar-
kets around the world dropped drastically and also registered sharp declines on a full-year basis. In response
to this economic crisis, MMC implemented emergency measures, including production cutbacks to curtail
excess inventories and rigorous cost reductions.
The business environment is expected to remain challenging in fiscal year 2009. In response, we are taking
steps to improve our sales capabilities, especially in emerging markets, to boost sales, as we continue to rig-
orously cut costs.
Additionally, there is growing interest in the environmental aspects and economic efficiency of automo-
biles, including stronger support for small, fuel-efficient models in the economic policies of governments
around the world. Against this backdrop, MMC is aggressively investing in small fuel-efficient vehicles, includ-
ing the i-MiEV and will introduce products that meet the needs of individual nations.
Japan
Net Sales and Operating Income (Loss)
In fiscal year 2009, MMC is targeting net sales in Japan of
¥440.0 billion, an increase of 10% year on year. Aiming for a
return to profitability, MMC is targeting an operating income of
¥19.0 billion, an improvement of ¥34.1 billion year on year. In
addition to higher retail sales, the main factors underlying this
target are reductions in material costs and other costs, includ-
ing personnel expenses and selling expenses centered on sales
promotion and advertising costs.
16 MITSUBISHI MOTORS CORPORATION Annual Report 2009