Mitsubishi concentrates on emerging markets and environmental initiatives

Mitsubishi to jointly develop mini vehicles and expand mutual supply with Nissan

2011/10/12

Summary

 Mitsubishi Motors (Mitsubishi) developed the FY2011-2013 mid-term business plan "Jump 2013" in January 2011. The plan includes concentrating resources in "emerging markets" and "environmental initiatives" to "grow and leap forward". This report compiles Mitsubishi's recent movements and future plans, highlighting its regional strategies of which directions were unveiled in the new mid-term business plan.

 The new mid-term business plan is intended to achieve a retail sales volume of 1.37 million units (990K units in FY2010), a net sales of 2,500 billion yen (1,828.5 billion yen in FY2010), and an operating income of 90 billion yen (40.3 billion yen in FY2010) in FY2013.

 As for the product strategy, Mitsubishi will strengthen its electric vehicles and expand its global strategy models, centering on the "Global Small" which will be launched at the third Thailand plant in March 2012.

 According to its regional strategy, Mitsubishi will attempt to enhance production capacity and increase profits in emerging markets. China, Russia, ASEAN countries, and Brazil are the heart of the strategy where Mitsubishi will launch new products and drastically increase production capacities. It is expected that overseas production will be up from 44% in FY2010 to 54% in FY2013 of its global production.

 In the mature markets, Mitsubishi aims to adjust production capacities and solidify profitability. Mitsubishi will change its production models to compact SUV Outlander Sport (Japanese name: RVR) at its U.S. plant, while it will discontinue production of the Colt at the Netherlands plant by the end of 2012 (both plants will discontinue the production of region-specific models). In Japan, Mitsubishi will expand its scope of cooperation with Nissan to jointly develop mini vehicles and expand their mutual supply under the OEM agreement.

 Mitsubishi had an increase in net sales and profit in its FY2010 business results, thanks to its global sales expansion (with the exception of Japan). Mitsubishi expects in the FY2011 forecast that net sales and profit will increase, and it says that the forecast will be in line with the new mid-term business plan.