Mitsubishi 2012 Annual Report Download - page 10

Russia
Preparing for local production of the
next-generation Outlander
Russ
i
a
P
reparing
f
or local production o
f
the
n
erat
i
on Out
l
an
d
er
China
Establishing a new joint venture
company and planning new
model production
Chi
na
u
r
Establishing a new joint venture
nning new
company and planning new
dl i
on
model production
India
Preparing for local
production of the
Pajero Sport
I
n
d
i
a
P
re
par
ing
f
or local
production o
f
the
P
a
j
ero Sp
ort
Vietnam
Commencing local production
of the Pajero Sport
nam
am
am
Vietna
mmencing local production
men
cal
Commenci
the
e
of th
Pajero Sp
o
Pa
P
ort
ort
Thailand
Third factory complete
Commencing production of the
all-new Mirage
Boosting production capacity at
the  rst and third factories
Thailand
Thaila
nd
rd factory comple
actory comp
acto
e
t
e
fa
a
f
y co
mmencin roduction of the
encing prod
cin
g p
uction of th
ction of t
e
h
e
h
e
pro
p
r
gpr
-
n
e
w
w
Mirag
age
Boosti
ng
pro
duction c cit
y a
t
ng productio
uct
tion c
apa
c
tio
t
tion capa
a
t
a
t
y
y
the  rst and third factori
es
df t i
ri
es
next-
g
e
n
Indonesia
Commencing local production
of the Outlander Sport
In
d
onesi
a
Commencing
l
oca
l
pro
d
uction
fh
of the
of
o
th
Outlander Sport
O
ut
l
an
d
e
r
Thi
Co
a
ll
-
Bangladesh
Commencing local produc-
tion of the Pajero Sport
Ba
Bangladesh
Ba
Ban
gla
des
h
mmen
c
Commencing local produc-
tio
n o
f t
he
Pa
j
ero Spor
t
 We are working to optimize production
capacity in advanced markets
With the aim of adjusting production capacity to natural de-
mand in mature markets, we commenced production of the
Outlander at our Ozaki Plant in Japan in May 2012. We recog-
nize that the export environment is problematic, however, due
to high levels of ongoing yen appreciation.
Looking overseas, we began local production of the Out-
lander Sport, (RVR in Japan), a compact SUV, in the United
States in July 2012, and we are raising the plant utilization ratio
by expanding exports to Central and South America, Russia
and other areas. Meanwhile, we have decided to cease vehicle
production at our European facility at the end of 2012 and not
to introduce new models after that point.
Due to the progress of these production reforms and our
efforts to augment production volume, centering on emerging
markets, in  scal 2012 we expect overseas unit production to out-
pace domestic production for the  rst time. Our overseas produc-
tion ratio for  scal 2011 was 49%; we anticipate a rate of 57% in
 scal 2012. This change will make the Company more resistant to
exchange rate  uctuations and enable us to reduce costs.
FY2012 (Target)FY2011 (Actual)
8% increase
D
omestic
pro
d
uctio
n
Overseas
production
(Thousands of units)
Raising the Overseas Production Ratio by Boosting
Overseas Unit Production
1,074
1,214
550
524
49%
523
691
57%
Message from the President
 We will aggressively boost production
capacity in emerging markets.
On the production front, our mid-term business plan, “Jump
2013,” calls for efforts at increasing production capacity in emerg-
ing markets and adjusting it to natural demand in mature markets.
With the aim of increasing production capacity in emerging
markets, we are expanding in the robust ASEAN region based
on a growth strategy that we formulated in September 2011,
“ASEAN Challenge 12” (see Feature 1 on pages 10–13). Speci -
cally, we are building a structure to supply the all-new Mirage
throughout the world from our third factory in Thailand, which
was completed in April 2014. We are also augmenting produc-
tion capacity at the  rst and second factories for such models as
the Triton, our mainstay pickup truck. We have already begun
local production in Vietnam and Bangladesh for the Pajero
Sport, a mid-sized SUV, and in Indonesia for the Outlander
Sport (RVR in Japan), a compact SUV.
We are also aggressively boosting production capacity in
emerging markets outside the ASEAN region. In November
2012, we will begin local production at our Kaluga plant for the
next-generation Outlander, to be sold within that country. In
China, we are in the process of setting up a new joint venture
company with the Guangzhou Automobile Group. We expect
to begin production of a new model in October 2012 at the
joint venture. Furthermore, we are preparing to begin local
production in India of the Pajero Sport, a mid-sized SUV.
Production Initiatives
MITSUBISHI MOTORS CORPORATION
Annual Report 2012
8