Mitsubishi Motors Announces Mid-Term Business Plan
The new Mitsubishi new business plan reflects changes in the car industry caused by worldwide economic turmoil.
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January 20, 2011 (FPRC) -- Mitsubishi Motors Corporation (MMC) today announced 'Jump 2013', its new mid-term business plan for fiscal years 2011 through 2013 (ending March 31, 2014). The new plan reflects the immense change in automobile industry demand structure caused by worldwide economic turmoil. By focusing business resources on increasingly important areas such as fast-growing, emerging markets and on environmental initiatives, and by reforming cost structure, Jump 2013 aims for 'growth and a leap forward'.
Product-wise, MMC will be launching 8 new electric-powered vehicles*1 by FY2015 as part of its efforts to reduce environmental impact. This includes introduction of hybrid vehicles in FY2013 to improve fuel efficiency over conventional combustion-engine vehicles. In parallel, MMC will keep its business resources focused on globally strategic models such as compact cars and SUVs, for which high demand is expected, especially in emerging markets. Both development process and product range will be streamlined by discontinuing region-specific model production.
In emerging markets where demand is growing, MMC plans to expand its lineup by introducing vehicles with high market demand, such as SUVs and a compact, fuel-efficient and affordable global strategic car ('Global Small'). This increases FY2013 retail sales volume by 280,000 units over the FY2010 forecast. In mature markets where a gentle recovery is expected, FY2013 sales volume is set with a 90,000-unit increase over the FY2010 forecast, by including compact cars and eco-cars. This brings total FY2013 target sales volume to 1,370,000 units (FY2010 forecast: 1,000,000 units*2).
MMC will strengthen its production capacity in emerging markets to respond to the range of growing demands in those regions. In Thailand, MMC will build a third factory, making it the second-largest exportation hub after only Japan; in China, MMC will strengthen production capacity by reinforcing a joint venture with a local partner; and in Russia, MMC will start production of a new SUV. At the same time, production capacity at Japanese, US and European production hubs will be adjusted to target sales volumes. The US hub will introduce a new model for both domestic and export sale. As for its European hub, MMC has decided not to introduce a successor to the region-specific Colt model. Finally, in Japan, MMC will proceed with a minicar joint venture with Nissan to increase domestic production volume and streamline plant operations.
While the business environment is undergoing such substantial changes, MMC will make fundamental reforms in cost structure via a Cost Reduction Implementation Committee under the direction of the president. By measures such as counteraction of yen appreciation by expansion of overseas procurement, MMC targets a 90 billion yen decrease in FY2013 material costs over the FY2010 forecast. Together with global production expansion, MMC will also enhance efforts to sustain worldwide Mitsubishi brand quality level.
Alongside the ongoing business alliance with PSA Peugeot CitroŽn, MMC has expanded its business cooperation with Nissan. MMC will act decisively to form alliances with potential business partners in individual project areas with foreseeable merits, to increase opportunities and strengthen profitability.
Through these efforts, FY2013 target sales are set at 2.5 trillion yen (FY2010 forecast: 1.9 trillion yen); operating income at 90 billion yen (FY2010 forecast: 45 billion yen); and net income at 45 billion yen (FY2010 forecast:15 billion yen). Resumption of dividends is targeted by improvements in financial structure and bolstering of profit levels within the planned period.
*1: This includes both electric vehicles and plug-in hybrid vehicles.
*2: MMC has previously included in its sales figures models sold under non-MMC brands which earned royalty revenue. From FY2011, MMC will use a new counting method and only count sales of models sold under the Mitsubishi brand. The 1,000,000-unit figure mentioned is calculated using the new counting system.
--Note on forward-looking statements--
All statements herein, other than historical facts, contain forward-looking statements and are based on MMC's current forecasts, expectations, targets, plans, and evaluations. Any forecasted value is calculated or obtained based on certain assumptions. Forward-looking statements involve inherent risks and uncertainties. A number of significant factors could therefore cause actual results to differ from those contained in any forward-looking statement.
Significant risk factors include feasibility of each target and initiative as laid out in this presentation; fluctuations in interest rates, exchange rates and oil prices; changes in laws, regulations and government policies; and regional and/or global socioeconomic changes.
Potential risks and uncertainties are not limited to the above and MMC is not under any obligation to update the information in this presentation to reflect any developments or events in the future. Accordingly, the final decision on investment must be made on the investors' responsibility. Mitsubishi Motors hereby states in advance that it will not take responsibility for any loss suffered by an investor from an investment based on information in this document.
For further information, contact:
Lenore Fletcher, Head of Corporate Communications
Telephone: (08) 8275 2348
Caitlin Beale, Manager of Corporate Communications
Telephone: (08) 8275 7250
Mitsubishi Motors Australia is part of the global Mitsubishi Motors organisation and is fully owned by Mitsubishi, one of the world's largest companies.
The company's history dates back to 1870, when Mitsubishi's Japanese founder, Yataro Iwasaki, started a shipping company with three steamships. The company grew from strength to strength and, in 1914, registered the Mitsubishi three-diamond trademark. This symbol embodies more than 130 years of tradition, and has earned the confidence and trust of customers all over the world.
Mitsubishi takes great pride from knowing that more than 11 million people from around the world have chosen to drive a Mitsubishi vehicle. There are Mitsubishi dealers in more than 200 sites across Australia. These professional and knowledgeable dealers help owners ensure their Mitsubishi car is always looked after by fully-trained Mitsubishi technicians, using genuine Mitsubishi parts that meet stringent global standards.
Mitsubishi works hard to develop award winning new cars and automotive technology.
If you would like to know more about the iMiEV Electric Cars or a Mitsubishi commercial vehicle see the Mitsubishi website.
Send an email to Lenore Fletcher of Mitsubishi Motors Australia
(08) 8275 2348
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