Mitsubishi motors corporation

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  • 1. Mitsubishi Motors Corporation三菱自動車工業株式会社TypePublic (TYO: 7211)IndustryAutomobile manufacturingFoundedApril 22, 1970Headquarters33-8, Shiba 5-chome, Minato, Tokyo 108-8410 JapanKey peopleTakashi Nishioka (Chairman)Osamu Masuko (President)Heki Kasugai (EVP)ProductsAutomobiles and light trucksRevenue¥1,445,616 million (2009)[1]Net income¥4,758 million (2009)[1]Employees33,202 (2007)WebsiteMitsubishi-Motors.com<br />Mitsubishi Motors Corporation (三菱自動車工業株式会社, Mitsubishi Jidōsha Kōgyō Kabushiki Kaisha?) is the sixth largest automaker in Japan and the seventeenth largest in the world by global vehicle production.[2] It is part of the Mitsubishi keiretsu, formerly the biggest industrial group in Japan, and was formed in 1970 from the automotive division of Mitsubishi Heavy Industries.[3] The company has its headquarters in Minato, Tokyo.<br />Mitsubishi Motors<br />Mitsubishi Motors automotive tradition goes back to 1917 when the Mitsubishi Model A, Japans first series-production automobile, was introduced. Over the next two decades the company established themselves as an innovator, developing, amongst others, Japans first diesel engine, its first large-sized bus (the start of the world famous Fuso commercial vehicle series), its first four-wheel drive passenger car prototype, and its first diesel-powered truck.<br />At the end of the Second World War Japans large industrial groups were dismantled by order of the Allied powers and Mitsubishi Heavy Industries was split into three regional companies, each with an involvement in motor vehicle development.<br />The country’s major need at this time was for commercial vehicles, the situation being further complicated during the first few years by a severe fuel shortage. In consequence 1946 saw the introduction of a bus which could be run on either petrol or alternative fuels, and, in 1947, an electric bus; in the truck field the innovations continued with Japans first truck to be equipped with an air suspension system, as well as the first tilt-cab truck. Passenger vehicle production was confined primarily to Mitsubishis first scooter.<br />By the beginning of the 1960s, however, Japans economy was gearing up: wages were rising and the idea of family motoring was taking off. The Mitsubishi 500, a mass market saloon, fulfilled this need; followed, in 1962, by a four-seater micro-compact with a two-stroke air-cooled 359cc engine, the Minica - a name which still lives today. The first Colt -a larger, more comfortable family car, not a predecessor of the modern Colt - was also introduced in the same year, and the first Galant in 1969. This was a genuine pacesetter in the Japanese market, representing the best and latest in automotive technology and was to sire a long and illustrious line with a string of motor sports honours and consumer awards to its name.<br />With similar growth in its commercial vehicle production it was decided that the company should create a single operation to focus on the automotive industry and, in 1970, the Mitsubishi Motors Corporation (MMC) was formed.<br />The 1970s saw the beginning of Mitsubishis considerable international rallying success with Galants and Lancers, demonstrating the qualities of performance and reliability for which they are known today. As part of a global expansion programme in 1974 UK distribution was ensured with the formation of The Colt Car Company, a joint venture between the Mitsubishi Corporation and Colt Automotive Limited.<br />By the end of the decade Mitsubishi vehicles were picking up honours both at home and abroad, including South Africas 1977 Car of the Year (the Galant) and 1979 USAs Pick-up of the Year (the L200). But this was just the start. In 1982 the Shogun (named Pajero or Montero in other parts of the world) was launched, a 4x4 which was quite different from anything that had been seen before. Quite incredibly, just a few months later in the Paris-Dakar rally, it took honours in the Production Class and the Marathon Class, as well as the Best Team award. Two years later it won outright and a legend was born. The Shogun became a global best-seller, winning 4x4 of the Year awards in Britain, France, Australia, Spain and West Germany. And it was not alone on the honours list - Galants, Colts, Lancers and L200s were all being honoured worldwide.<br />Throughout the 1990s the Shogun continued to dominate rally events like the Dakar, and Mitsubishi vehicles also began to make their mark on the World Rally Championships. By the end of the century Tommi Makinen in a Lancer had won the Championship an historic four consecutive times whilst Lancers totally dominated the Group N Championships - for vehicles which are basically showroom standard.<br />Technologically this decade saw incredible advances. In 1990 MMC introduced the worlds first Traction Control System, followed by Super Select 4WD and Multi-mode ABS in 1991 and INVECS in 1992. Commercial production of the Libero electric car began in 1994 whilst 1996 saw the development of the GDI engine.<br />Overseas production expansion was attained with the first Carismas rolling off the line at NedCar, Holland in 1995 - a joint venture between MMC, Volvo and the Dutch government - as well as the opening of production lines in Australia and Thailand. NedCar became a wholly owned MMC facility within a year.<br />In 2000, MMC and DaimlerChrysler (DC) developed a business partnership that involved design, development and production co-operation. DC purchased a 37% stake in MMC and at NedCar Volvo production was replaced by Smart Four-Fours. In 2004 DCs stake in MMC was sold to the Mitsubishi Family (comprising of Mitsubishi Corporation, Mitsubishi Heavy Industries and the Bank of Tokyo Mitsubishi). However, MMC and Daimler Chrysler have maintained a successful business relationship and continue to share B & C segment platforms and engines.<br />In terms of motor-sport, the strength of Mitsubishis 4x4 heritage was yet again demonstrated by a record breaking 12th victory in the 2007 Dakar rally - the seventh successive victory for the Japanese manufacturer.<br />Today, MMC has manufacturing facilities in over 30 countries and its sales and after-sales organisation is present in more than 170 countries.<br />Mitsubishi Motors Europe<br />In 2002, Mitsubishi Motors Europe was established in order to coordinate sales and after-sales specifically for the European market. European product revival started with the Colt in 2004 and subsequently the Grandis, Lancer Evolution IX, new L200 and most recently the Colt CZC Cabriolet joined the range. In 2007 the full product line-up transformation was further developed with the introduction of the all new Outlander and revised Shogun. 2008 saw the introduction of the all new Lancer, Lancer Sportback and facelifted Colt.<br />The Colt Car Company<br />The Colt Car Company (CCC) was established as the sole UK distributor in 1974. Other subsidiary companies are: Mitsubishi Contract Motoring (contract hire), Shogun Finance (retail finance company) and Colt Mid West (dealerships - currently there are 11). At present the company has a network of 120 dealerships.<br />Prior to the end of import quotas in 1996 average annual sales were around 10,000 units, with a high mix of 4x4s. The introduction of European-built models at NedCar, together with the relaxation of import quotas on Japanese-built vehicles resulted in sales expectations increasing dramatically.<br />In 2000 a new management team headed by Jim Tyrrell took over. A new strategy was implemented for fleet business, product and pricing and new terms for dealers. Mitsubishi soon became the fastest growing Japanese marque in the UK and annual sales more than doubled between the years 2000 - 2005 from 18,000 to 38,000 units.<br />The number one selling Mitsubishi vehicle in the UK in recent years has been the L200 pick-up (79,608 units sold between 1998 and 2007). The new L200 drive forward the success of Mitsubishis dominance of the pick-up segment in the UK, sustaining the retail share of the outgoing L200, at an impressive 35.6% in 2007.<br />2007 and 2008 saw a spate of new model introductions, with the launch of the new Outlander, revised Shogun, i city car, new Lancer and Lancer Sportback, and the flagship Lancer Evolution X.<br />Also in 2008, the retirement of majority shareholder David Blackburn led to his stake in the company being sold to MC Automobile (Europe) NV (MCAE), a wholly-owned subsidiary of Mitsubishi Corporation. As a result of this acquisition, CCC is now a wholly-owned subsidiary of MCAE. Mitsubishi Corporation is Japans largest general trading company, with over 200 operational bases and 500 group companies in approximately 80 countries worldwide, giving CCC an excellent foundation to continue its success in an increasingly challenging marketplace.<br />But out all thses great fairytale ,how come the CEO of Mitsubishi making a speech full of apologies and better future plans –<br />Speech by Yoichiro Okazaki, Chairman and Chief Executive Officer Mitsubishi Motors Corporation<br /> Good afternoon ladies and gentleman.Firstly, I wish to apologize for the trouble and worry that Mitsubishi Motors has caused in relation to the handling of recalls. I also offer my prayers to the victims and extend my deepest apologies to the bereaved families.At today's annual shareholders' meeting, the management lineup for the new Mitsubishi Motors was set and the members you see here before you will now work on implementing our business revitalization plan.Since I announced our revitalization plan on May 21, I have worked to reform the management to restore trust in the company and aim for a self-supported recovery. Now that the new management lineup has been finalized, I intend to speed up the pace of reform.I would also like to report that on June 24, Mitsubishi group companies and China Motor Corporation--an important partner of ours in Asia--bought preferred shares in Mitsubishi Motors. Yesterday, two of our banks bought preferred shares and we will use the funds to pay of outstanding debts with them.We are also fortunate to have Mr. Noboru Matsuda, former Director General of the Supreme Public Prosecutors Office's Criminal Affairs Department and Governor of the Deposit Insurance Corporation of Japan, come on board as the chairman of our new Business Ethics Committee.There are no changes to the basic outline of our three-year plan. We will now steadily implement the plan with speed. In a moment, you will hear from the leaders of our CSR Promotion Office, Corporate Restructuring Committee, and Business Ethics Committee--all important organizations in our revitalization--on their commitments.As the CEO of the company, I will make three commitments.First and foremost is my commitment to achieve the numerical targets set out in our business revitalization plan. At a press conference on June 16, I explained that downward risks have appeared in regards to our domestic sales plan for the current fiscal year. And I outlined additional cost cutting measures to avoid the risks. The present operating environment of Mitsubishi Motors is extremely severe, and further unforeseen changes may occur which haven't been accounted for. By " changes," I mean both positive and negative. But no matter what happens, we will turn a positive net profit in fiscal 2006. Mr. Yashushi Ando, our corporate restructuring officer, will talk to you later on how our business revitalization plan will be implemented.My second commitment is to get to the bottom of the situation surrounding the company's cover up of recalls. In 2000, Mitsubishi Motors should have analyzed why such recall cover ups were allowed to occur and taken the appropriate steps to ensue a similar situation never occurred again. However, the company is still trying to clean up its past repair directives, causing much trouble to a great number of people. Since I joined Mitsubishi Motors on April 30, I have promised to take care of everything related to the company's problems in 2000. First, I ordered an investigation into 92 repair directives that were issued in the past and reported that we will issue a total of 30 recalls and improvement measures. To give the public even greater peace of mind, we extended our investigation. In the interests of transparency, we will continue to update you on any new facts that come to light as the result of our investigation.Some people are worried about recalls and lawsuits overseas. We are contacting all overseas owners of vehicles that are subject to recall in Japan and taking the appropriate measures in line with local rules and regulations, regardless of whether or not the country has an established system for recalls. We have already sent out orders to our overseas operations regarding the 30 cases. Our investigations have, however, found that no vehicles are subject to recall in the United States as specifications and engines differ from those in Japan.As such, there is very little chance that the recall cover up in Japan will lead to large recalls or lawsuits overseas.My third and final commitment is to ensure total compliance and reform the corporate culture. Mr. Koji Furukawa outlined our concept for the initial phase of this at a press conference on June 16. He presented the schedule for compliance issues--a part of our new business philosophy of placing top priority on compliance, safety, and customers. He also told you how all executives will be asked to sign a pledge to make compliance a leading part of all their business interactions. Today, he will update you on the progress of compliance and outline the schedule for the CSR Promotion Office's work to make sure the company places top priority on safety and customers. I believe upholding compliance and reforming the corporate culture are important points in reforming Mitsubishi Motors. We will definitely achieve our goals in this area too.To brief a bit..Misibishi America in struggling .t's tough being the savior of a company that may be beyond salvation. Just ask Finbarr J. O'Neill, the auto executive who turned around Hyundai Motor Co.'s U.S. business. Sixteen months ago, O'Neill was picked to work similar magic at Mitsubishi Motors Corp.'s (MMNA ) North American unit. He started quickly, scrapping the easy financing terms that created big credit problems for Mitsubishi, putting the brakes on the bulk sales to rental car companies that reduced resale values, and eliminating the youth-oriented TV ads that looked more like music videos than car commercials.Mitsubishi soon announced a new CEO, Rich Gilligan, its well-respected head of U.S. manufacturing. But he is widely seen as a placeholder until the parent names a permanent U.S. chief. And with sales sliding, the brand eroding, and a dearth of sure-fire models, it is increasingly unclear that anyone can save the U.S. unit. " It's tough to market Mitsubishi," says O'Neill's predecessor, Pierre Gagnon. " They're stuck between the high-quality image of Toyota (TM ) and Honda (HMC ) and the value of the Korean brands." WHY THE CEO BAILED It didn't help that practically since O'Neill took over, there was turmoil at the top. Six months after he joined the company, DaimlerChrysler (DCX ), having already plowed $3.5 billion into Mitsubishi, balked at putting in more. Not long after that, Mitsubishi Group put together a $4.7 billion bailout, displacing Daimler as the majority shareholder. Suddenly O'Neill, who had seen Mitsubishi as a stepping stone to a job at DaimlerChrysler, was now dealing with new Japanese bosses who were pushing for faster results. It wasn't long, O'Neill says, before he was considering his options.Can Mitsubishi claw its way back in an industry with too many players? It's debuting two new models this month at the North American International Auto Show in Detroit: a redesigned Eclipse sports car and a pickup called the Raider, partly designed in Southern California. But both segments are crowded. And without the models or the marketing to set itself apart, Mitsubishi's troubles are only likely to get worse.<br />To evaluate the position of company back home japan, the following data would be an eye-opener .<br />AUTOMOBILESPassenger Car1. Toyota Motor2. Nissan Motor3. Honda Motor4. Mazda5. Fuji Heavy Ind.45.818.613.878.25.8Truck1. Hino Motor2. Isuzu Motor3. Mitsubishi Fuso4. Nissan Diesel31.526.424.517.6Small Sized Car1. Suzuki Motor2. Daihatsu Motor3. Honda Motor4. Mitsubishi Motor5. Fuji Heavy Ind.31.429.713.89.18.8Motorcycle1. Honda Motor2. Yamaha Motor3. Suzuki Motor4. Kawasaki Heavy55.524.417.32.8Imported Car1. Volkswagen2. Mercedes-Benz3. BMW4. Toyota Motor5. Volvo20.616.214.47.45.2Car Navigation1. Pioneer2. Matsushita Electric3. Sanyo4. Fujitsu Ten5. Mitsubishi Electric26.324.114.212.08.4Tire Tube1. Bridgestone2. Sumitomo Rubber3. Yokohama Rubber4. Toyo Tire48.322.616.111.6<br />Now for floating over European scenario ,things are like this:-<br />Mitsubishi Motors is losing money in Europe. But it has a plan.<br />Part of that plan has involved moving its European headquarters 200 yards down the road in Amsterdam. It owned its HQ, so selling and moving into a leased building freed up vital capital.<br />When a company does something like that you begin to think it is serious about everything else it is planning.<br />Mitsubishi hit the giddy heights of 1.4 percent between '97 and '99 when its mainstream Carisma model, built in Holland, was being heavily discounted.<br />Now its share is 1 percent and the new management team -- a result of the DaimlerChysler takeover -- is putting in a revival plan based on three pillars to reverse its fortunes, says Thomas Weigand, vice president sales and market management for Mitsubishi Motors Europe.<br />The first was to get the right product This will include the continuing supply of the compact Pajero (Shogun) Pinin from Pininfarina in Italy.<br />" We have a contract until 2005 with Pininfarina, and we are looking at possibilities to continue beyond that," says Weigand. This possibility seems almost a certainty.<br />For the position of the company’s progress in India ,<br />Mitsubishi Motors, which has marketing and manufacturing agreement with Hindustan Motors, is also selling its proven and tested SUVs Pajero and Montero in India through Hindustan Motors' nationwide distribution network. <br />The SUV market in India has grown 32 percent to 130,041 vehicles in FY08 from 98,086 vehicles in the previous fiscal. <br />In a separate development, Hindustan Motors said it plans to lift up its flagging sales by launching Cedia and Lancer with new features. <br />" The market has been down for quite some time, but it should come back during the festive season. Our sales should also improve in the coming months with the existing and new products," Birla said, adding the company's sales during September had slowed because of an increase in car financing rates. Rising raw material costs have also put margins under pressure, he added. <br />Mitsubishi taking Hindustan Motors as it’s Sales and distribution partner was not that wise decision because Hindustan corporation doesn’t have a very successful record their own product.<br />It’s Product Ambassador is not a very loved product in today market. Mitsubishi must have been more careful in choosing the partner.<br />Doing more filtering we are now concentrating on it’s So Far Lucknow performance <br />: Mitsubishi Motors and Hindustan Motors' dealer in Lucknow, Motion Motors has opened an elegant new showroom in the heart of the city, at Sapru Marg. The showroom was inaugurated today by Mr. Y.V.S Vijay Kumar Vice president, Hindustan Motors in the presence of senior company officials. Motion Motors will offer world-class experience to Mitsubishi customers in Lucknow and this showroom will showcase the entire product range from Mitsubishi Motors which includes Lancer, Cedia, Pajero and Montero. With the opening of this showroom the total no of Mitsubishi dealerships in the country goes up to 39. Mitsubishi plans a total of 50 showrooms in India by the end of 2008. Speaking on the occasion, Mr. Y.V.S Vijay Kumar said, " We are delighted that Motion Motors has opened its new showroom which is completely state-of-the-art. This initiative is part of a series of dealerships which Mitsubishi & Hindustan Motors' (HM) are opening through out the country in the next 20 days. Mitsubishi has substantial growth plans in India which will further strengthen our operations" .Lucknow has tremendous potential for premium cars and Mitsubishi with its range of sophisticated and technologically advanced vehicles would target this segment and offer the best in its class to the customers. The discerning buyers of Lucknow in this segment are completely aware of the rally pedigree for which Mitsubishi Motors is globally famous.Mitsubishi has taken the leadership position in the 'SUV' segment in India with the legendary Pajero and Dakar rally winner, 'All New Montero' doing well in their respective segments and intends to further consolidate with the launch of 'Outlander', the urban SUV which is scheduled to be launched in India later this year. The current product line-up in the country for Mitsubishi Motors consists of the 'Mitsubishi Cedia' which is available in petrol and ALPG versions while the 'Mitsubishi Lancer' is available in both petrol and diesel variants. The pricing of Mitsubishi products begins with Rs. 6.75 lakhs for Lancer, Rs. 8.30 lakhs for Cedia, Rs. 18.81 lakhs for Pajero and Rs. 34.11 lakhs for Montero.<br />To know about the success of Mitsubishi in it’s making of brand-image in India : <br />I conducted a small survey with a crowd on 25 academician who are pursing MBA. The result was no surprise , because Mitsubishi Motor being the most popular company of the group world-wide is not doing really amazing in India .<br />The 3 diamond logo of the company is being confused with the other logos ,some 40 % students were able to recognize it . <br /> After Knowing the company , guessing it’s country of origin was very easy for the crowd ,due to appealing Japanese touch in the name. <br />Only 10 % of the interviewer have used the product of the company and it was only one “Pajero”. <br />But yes, everybody believe that they have a long way to go in Indian market and there is quit possibility for them to Improve and prosper .<br />Thank you <br />