Mitsubishi 2014 Annual Report Download - page 35

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Tie-ups and alliances
The MMC Group engages in a variety of activities
through operational tie-ups and alliances with auto
manufacturers and other companies both in Japan and
overseas for the purpose of conducting and expanding
its operations. In the event of a particular situation arising
at, or of any breakdown in discussions with, a tie-up or
alliance company which is beyond the control of MMC,
the operating results and/or financial standing of the
MMC Group may be seriously impacted.
Dependence on particular suppliers
MMC sources raw materials and parts from a large num-
ber of suppliers. The necessity to procure materials and
parts characterized by higher quality or more advanced
technologies at more competitive prices may bring about
a situation in which orders are concentrated upon a spe-
cific supplier. There may also be only a limited number of
suppliers able to supply parts for which a specific technol-
ogy is required. Consequently, the operating results and/
or financial standing of the MMC Group may be seriously
impacted in the event that some unforeseen situation
arises and interrupts deliveries from such suppliers.
Customer, trading partner credit
The MMC Group is exposed to credit risks in its dealings
with customers and with dealers and other trading part-
ners and in its automobile financing business. In the event
that losses stemming from such credit risks exceed the
company’s estimates, the operating results and/or financial
standing of the MMC Group may be seriously impacted.
Infringement of intellectual property rights
In order to distinguish its products from those of other
auto manufacturers MMC endeavors to protect its own
technologies, know-how and other intellectual property
as well as to prevent the infringement of third party intel-
lectual property rights. However, in the event that a third
party unlawfully uses MMC Group intellectual property
to manufacture and sell imitations of its products, or in
the event that limitations in the legal system in certain
countries in relation to the protection of intellectual
property rights result in a fall in sales or in legal costs, or
in the event that an unforeseen third party intellectual
property right requires a halt in manufacturing or sales
or in the payment of compensation, the operating results
and/or financial standing of the MMC Group may be
seriously impacted.
IT and information security
The information technology and the networks and sys-
tems that the MMC Group uses in its management and
its products are exposed to the possibility of attacks by
hackers or computer viruses, to illegal or inappropriate
use and to infrastructure breakdowns. In such an event,
the operating results and/or financial standing of the
MMC Group may be seriously impacted.
The MMC Group possesses confidential information
relating to matters both within and without the Group
and including personal data. In the event such informa-
tion is improperly leaked to the outside, the operating
results and/or financial standing of the MMC Group may
be seriously impacted.
MITSUBISHI MOTORS CORPORATION
Annual Report 2014 33