Mitsubishi has come up with a new mid-term business plan called “Jump 2013? in which they will redirect their efforts towards fast-growing, emerging markets of electric cars and on environmental initiatives. By reforming cost structure, Jump 2013 aims for “growth and a leap forward”.
The Japanese car maker has plans to launch electric-powered vehicles till 2015 to reduce environmental impact. That includes introduction of new hybrid models for 2013 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. One other important model for Mitsubishi in the emerging markets is the new Global Small Car set for debut at the 2011 Geneva Motor Show.
The new policies will increase FY2013 retail sales volume by 280,000 units over the FY2010 forecast. Unfortunately though, in the emerging markets that are important to Mitsubishi there’s not much room for high performance models. So don’t expect to see a new special edition of Lancer every year. I mean we should just be happy they keep making it! Also, don’t be surprised if they announced a hybrid version of this rally-bred car.
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 Citro?n, 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.