Mitsubishi 2014 Annual Report Download - page 15

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new plants and commencing production at joint venture com-
panies. We expect these efforts to deliver steady results, and we
will push forward with measures to bolster sales and pro ts in
emerging markets, centering on Asia.
We will accelerate structural reform efforts in mature mar-
kets with the aim of improving pro ts. In Japan, we aim to
develop the minicar business further through NMKV, our joint
venture with Nissan Motor Company that designs and develops
minicars. At the same time, we will work towards improving
sales ef ciency and pro tability by narrowing the number
of models and expanding sales volume per model. In North
America, we aim to improve production ef ciency at U.S. plants
by manufacturing vehicles for export. In Europe, where we
lowered  xed costs and improved pro tability through the 2012
sale of production subsidiary Netherlands Car B.V. (NedCar), we
will work to recover sales volume and expand pro ts by maxi-
mizing the effect of the introduction of major models such as
the new Triton.
Restructure Operations
We will move aggressively forward with reforms to operating
structure. Speci cally, we aim to achieve an optimal balance
in our global production capacity. On the one hand, we will
expand production in emerging markets, where demand is
expected to grow. In mature markets, on the other hand, we
intend to maintain adequate capacity while moving forward
with streamlining our plants and introducing next-generation
production technology. We expect our overseas production ratio
to grow as a result of these moves. Meanwhile, in Japan we are
increasing the utilization rate at the Mizushima Plant, which is
the base of minicar manufacturing through projects carried out
by NMKV—our minicar planning and development joint venture
with Nissan Motor. We will also move ahead proactively with
effective use of resources through business partnerships.
In addition, we are cutting costs by reorganization and inte-
grating our car lines. By reducing the number of previous-gener-
ation and region-speci c models, we plan to reduce our number
of platforms from nine as of  scal 2013 to seven by the end of
scal 2016, and decrease the number of models from 18 to 13
over that period. We expect to reduce  xed costs, in particular,
by augmenting sales volume per model and per platform.
We will continue with activities aimed at curtailing total
costs under a committee controlled directly by the president
that has been achieving steady results. Through these efforts,
we aim to lower groupwide costs by  scal 2016 by around
¥110 billion compared with  scal 2013 levels.
Sales Volume Target (Retail)
(Thousands of units)
FY2013 (Actual): 110
FY2016 (Target): 160
Europe z Improve protability
through reduction in
xed cost by selling
production facilities
z Maximize the effect of
new global model
launches including
new Triton
Sales Volume Target (Retail)
(Thousands of units)
FY2013 (Actual): 90
FY2016 (Target): 110
Russia & others z Expand sales, mainly in
strategic models such as SUVs
and pickup trucks
z Reduce costs by increasing
local production
Sales Volume Target
(Retail)
(Thousands of units)
FY2013 (Actual): 100
FY2016 (Target): 200
China & others z Shift to full production
at GAC Mitsubishi
Motors Co., Ltd.
(GMMC)
z Develop and enhance
sales network
Sales Volume Target (Retail)
(Thousands of units)
FY2013 (Actual): 240
FY2016 (Target): 390
ASEAN z Achieve goals set in ASEAN Challenge 12*1 and develop business
further in ve major ASEAN countries*2
z Reinforce business in the Philippines as a core market following
Thailand and Indonesia
*1: 360,000 units are to be sold in ve major ASEAN countries in scal 2015
*2: Thailand, Indonesia, the Philippines, Malaysia and Vietnam
Sales Volume Target (Retail)
(Thousands of units)
FY2013 (Actual): 140
FY2016 (Target): 150
Japan z Develop the minicar
business through NMKV
z Reduce the number of
models and increase
sales volume per model
Sales Volume Target (Retail)
(Thousands of units)
FY2013 (Actual): 100
FY2016 (Target): 150
North America z Revitalize sales network by
launching new models
z Improve production efciency
by exporting Outlander Sport
from U.S. factory
Regional Initiatives
MITSUBISHI MOTORS CORPORATION
Annual Report 2014 13