Mitsubishi 2011 Annual Report Download - page 18

> Building a global production structure that  exibly
adapts to structural changes in automobile demand
MMC is optimizing its production capacity in advanced counties
and increasing production capacity in emerging markets to
build a global production structure responsive to changes in
global demand.
In Japan, MMC is boosting factory operating rates and build-
ing supply systems to respond to growing demand, mainly in
emerging markets. Leveraging our alliance with Nissan Motor, we
are boosting unit production of minicars at the Mizushima plant.
Overseas, MMC is boosting local production capacity, chiefly
in emerging markets. We plan to manufacture more than half of
our total units at overseas bases by fiscal 2013, which will increase
our ability to hedge the risk of exchange rate fluctuations.
In advanced countries, we plan to discontinue production
of region-specific models such as those we currently produce at
Thailand: Building MMC’s third factory
Our third factory in Thailand is scheduled to begin operating
in March 2012. This factory will produce the “Global Small”
compact car—a model slated for launch in  scal 2011 and
featuring an engine in the 1.0–1.2L class. Utilized as a global
supply base, this plant
will have an initial
capacity of 150,000
vehicles per year, which
can be expanded to
around 200,000 vehicles.
China: Establishing a new joint venture
MMC is forming a new 50–50 joint venture with the Guang-
zhou Automobile Group, the largest automaker in Southern
China and a leader in the country. MMC is in the process of
determining what model to launch from this joint venture,
drafting action plans and moving forward with preparations
to build an optimal production system to meet demand in the
growing Chinese market.
Russia: Commencing full- edged production of SUVs
MMC is working to ensure that the production equipment and
quality control systems at a joint venture plant in Russia with
PSA Peugeot Citroën will be on a par with other existing plants.
In 2012, MMC plans to commence full- edged production at
this plant, supplying the Outlander SUV to the Russian market.
United States: Introducing a new model to be produced
at MMC’s Illinois plant
In 2012, MMC plans to commence production of its compact
SUV, the Outlander Sport (RVR in Japan, ASX in Europe) at its
Illinois plant. Amid growing global demand for compact cars,
the Outlander Sport plays a central role in MMC’s lineup. MMC
began selling this global strategic model in the United States in
October 2010. The Outlander Sport produced in Illinois will be
sold in the United States and exported to other countries.
bases in the United States and the Netherlands as part of our
efforts to optimize production capacity. Specifically, MMC will
halt plans to introduce a successor to the Colt, a region-specific
model produced in the Netherlands, and in the United States
will discontinue locally produced region-specific model. Instead,
we will begin manufacturing the Outlander Sport, with the aim
of exporting it from the United States.
MMC intends to boost production capacity substantially in
the emerging markets of the ASEAN region, China, Brazil and
Russia. MMC is building a third factory at its Thailand facility,
which will make Thailand its second-largest export base, fol-
lowing Japan. In China, we will enter a new joint venture with
the Guangzhou Automobile Group and bolster production
in Brazil. In Russia, MMC will commence full-fledged local
production of SUVs.
Special Feature
Global Production Structure
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
16