490161.edited- 1

MITSUBISHI MOTORS CORPORATION 1
MITSUBISHI MOTORS CORPORATION
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Mitsubishi Motors Corporation’s Brief Information
Audience
My audience is the senior management of Mitsubishi Motors Corporation. The
senior management desires to be the largest manufacturer of technological vehicles in the
world. As such, they try to make more advanced cars like fuel economy vehicles, than any
other vehicle manufacturing company on earth.
Scope
I am going to research about the sales department of Mitsubishi Motor Company.
Mitsubishi Motors is a thriving car manufacturing company within the large international car
manufacturing firms. The twenty replicas of trucks, SUVs, cars, and minivans are
manufactured at its firms in the US, Europe, and Asia. Both Mitsubishi Heavy Industries and
Mitsubishi Corporation own around 30% stake in Mitsubishi Motors, therefore tracing its
origins to 1917 Heavy Industries project Mitsubishi Model A. The company makes an
approximate 80% of its sales outside Japan. This year, Nissan used $2.2 billion in acquiring
thirty-four percent of Mitsubishi Motors. In endeavours of increasing growth opportunities,
Mitsubishi partnered with DaimlerChrysler at the fall of March 2000. The partnership created
the third largest manufacturer of vehicles on earth making 6.5 million vehicles annually.
The concord provided DaimlerChrysler a 33.4% ante within Mitsubishi Motors. That
stake was sufficient to DaimlerChysler to possess a big share in the Mitsubishi Motors. As
such, it would be more involved in the Mitsubishi Motors' critical decision making. In
response, DaimlerChrysler vowed to uphold the Mitsubishi model and maintain its labour
force. On the transaction's eve, Mitsubishi was faced with a crisis. As such, it was unearthed
that Mitsubishi was concealing customers' complaints and clandestinely repairing damaged

cars from 1977. Despite the malfunctions having not caused any deadly injuries, a Court
within Tokyo penalized the corporation 4 million Yen. The fiasco did not make
DaimlerChrysler cancel the deal. However, sales of Mitsubishi especially within Japan fell
the moment the news spread.
That revenue’s loss was aggravated by the recall’s big cost that amounted to ¥ 5
billion. That amount was roughly 25% pre-tax’s profits that had been forecasted by the
Mitsubishi for that year. Therefore, Mitsubishi Motors should shutter manufacturing the
falsified fuel economy vehicles and make the ones that are meeting its claimed specifications.
That would assist it in avoiding exiting the market due to customers’ loss.
Data
The Company’s sales department once again came to the limelight of cheating about
fuel economy trials of its vehicles. Annually, the corporation makes sales volume of one
million cars globally. The Corporation’s sales department in 2000 disclosed the hidden safety
faults and complaints of customers concerning its cars. After the four years that followed, the
company admitted further of a wider cover-up running back many years (CNBC 2016). The
hypothesis in this scenario is that the Mitsubishi Motor firm sales department has for several
decades been cheating customers to continue buying its cars because of their excellent
quality. However, after multiple years’ revelations of the cheatings, the car making
organization has been hit by many difficulties. In 2004, the company made the nastiest recall
disgrace of the moment. The scandal significantly affected sales and compelled the
Mitsubishi to take aid from the Mitsubishi Group.
There are predictions by analysts that there would be a history’s repetition with the
Mitsubishi Group having to rescue the car manufacturer again. During the recent broadly
televised press convention, the top executives completely bowed and accepted as having

deceived on the fuel economy trial data (CNBC 2016). The organization asserted that the trial
manoeuvring entailed 625,000 cars created since the mid of 2013. That included its eK mini-
wagon together with the similar 468,000 vehicles which it produced for the Nissan Motor.
The report revealed that the Nissan was responsible for unearthing the discrepancy within the
test data. Mitsubishi’s sales department pointed out that it would cease manufacturing and
retail those vehicles, and had formed an independent team for examining the matter.
Decline of Mitsubishi Car Sales (http://www.teamliquid.net/forum/closed-threads/508256-
the-end-of-mitsubishi-fuel-economy-scandal)
The Japan's ministry of transport has commanded the car manufacturer to provide a
complete report upon the test manoeuvring in only one week. The corporation has promised
that it would resolve on its reaction by 18th
May. It was an unexpected occurrence of the sales
department particularly the moment that Mitsubishi Motors had previously predicted a 15%
plunge in earnings for the financial year ending March of 2016. For the multiple previous
years, the corporation has been struggling to move out of the large monetary distress (Tutt
2016). The company had thought the strategy of supplying transmissions and engines to

Nissan and other companies would solve its predicaments. However, the emergence of the
present episode would make it harder to solve its financial difficulties. Unfortunately,
Mitsubishi would be forced to repay Nissan together with other corporations it supplied the
vehicles.
The misdemeanours would cost the car manufacturer possibly between thirty billion
and forty billion yen ($270 and $360 million) (CNBC 2016). Due to the decline in the sales
of Mitsubishi, competitors Daihatsu and Suzuki would obtain an augment of sales.
Graph Showing How Mitsubishi Motors would possibly Lose Money (in $¥)
0
10
20
30
40
50
Line 1
Line 2
Line 3
Since most of the cars were sold in Japan, the outcome of Mitsubishi’s cheating acceptance
was expected to be restricted. The cheating’s acceptance was another dark spot on the report
card of Mitsubishi. For the Mitsubishi to apologize and be accepted back by its customers, it
would require doing extra work. The executives’ bowing in front of the media is like slapping
on their faces. The customers would like to be offered a lucid explanation of why the
company had been engaging in such misdeeds. The sales department kept arguing that
cheating never contributes to any fatality. Further, the company asserted that it could
overcome the problem.
However, the sales staff would possess an uphill task of getting back market
dependence particularly within Japan - their largest market. Mitsubishi Motors is faced with

several risks. First, after the customers knowing having been lied on the vehicles' suitability,
they stopped purchasing the corporation's shares for a while. As a result, the shares fell more
than fifteen per cent, therefore, swabbing $1.2 billion from its souk value (Tutt 2016).
Mitsubishi Corporation Share Price Chart
(http://www.livecharts.co.uk/share_prices/MBC-stock-chart-technical-analysis)
Second, Mitsubishi Motors now faces the danger of losing customers worldwide due to the
various incidences of treating its customers dishonestly.
Assumptions
First, the company might be banned by the Japanese government and foreign
administrations in supplying vehicles. As such, the firm would eventually be closed. Second,
the competitors might take advantage of Mitsubishi’s current crisis and manufacture similar
cars, but of improved quality driving the company further out of business. Third, some
valuable employees might start exiting the business due to the fear of its tarnished reputation.
As such, the corporation would be faced with a shortage of qualified workforce necessary for
manufacturing high-quality sought-after vehicles. Fourth, the company might suffer

additional losses due to two reasons. First, customers might ultimately refuse to buy the
already made vehicles in the Mitsubishi Motors’ premises.
Chart Showing the Expected Drop in Mitsubishi Motors Car Sales 30, 10, 3
0
5
10
15
20
25
30
35
40
Column 1
Column 2
Column 3
Second, the already manufactured vehicles might require some parts to be either
added or removed to meet the customer requirements. The other assumption is that
Mitsubishi Motors might lose some of its principal suppliers forever. As such, since the sale
of its cars has significantly dropped, providers of various materials would be forced to look
for other customers to supply the materials at hand. Perhaps after getting other clients to
provide the materials, they would no longer supply again to Mitsubishi Motors due to the
inconvenience caused to them. The other assumption is Mitsubishi Motors losing insurance
companies to assure its property. As a result of its various scandals, insurance companies
might refuse to insure it due the bad name of running the deceitful business on many
occasions. On the other hand, the firm is faced with weaknesses. The first weakness is
ignorance of fixing a risky issue. As such, even after being detected of cheating customers
from 1977, the company still engages in fraudulent practices that are causing serious effects
to it.
The other weakness is incapability to provide defence after being caught of
wrongdoing. For example, instead of the company providing an excellent solution to the fuel

economy tests, the president bowed during the press conference. He even argued that the
deceit caused zero deaths. The other weakness is incapability of producing quality cars that
meet the customers' demands. As such, the company depends on cheating its customers about
its professionalism in car manufacturing to attract them. It only makes a few cars that meet
demands of what it claims to be manufacturing. It afterward continuously begins making
substandard vehicles raising a lot of public uproars. The other weakness is the unavailability
of an innovative workforce. After being caught cheating the customers, Mitsubishi Motors
does not attempt to make a single vehicle that passes the economy fuel tests to show that it
had the capacity of producing them. Thus, that plunges the company into problems even
further because nobody believes that the firm has ever dared to make fuel economy vehicles.
Mitsubishi Financial Performance

Recommendations
To win back the customers confidence and trust, Mitsubishi Motors Corporation
must consider ways of making them feel that it has taken the necessary steps in correcting the
falsified fuel economy trial data. It is possible to regain the market share but, concerted
efforts would be required for convincing and practically demonstrating to the customers that
it can make quality vehicles. First, the company should consider begging the clients who had
bought vehicles from it since 2013 to go back to the company to be sold other cars at half
price. However, the company should make a point of improving those vehicles to please
customers. That would make the customers feel that the corporation is minding about their
concerns. Second, the company should train all the employees about work ethics. As such,
every employee must be required to undergo training on ethics while executing duties.
The training should be done on the job. Alternatively, the employees should be
obliged to join institutions where Mitsubishi Motors would pay the school fees. Importantly,
such training should begin with the management and flow down to junior employees. The
other recommendation is addressing the issue (Blattberg and Allenby 2015). As such,
Mitsubishi Motors should become honest and identify the problem with its customers. It
should show that it understands the problem, and it is strongly focused on solving it. It would
even require some employees taking their time to contact the customers directly and converse
the burning issue. During discussions, they should be informing customers the resolution the
company intends to implement. It would be vital to ensure that workers would have the
suitable tools to perform their work. For example, the employees anticipated to call
customers possessing negative views about the vehicles would require being completely
informed on the best manner of conducting that type of discussion.

In addition to this, they should be offered guidance on proper conversation points.
Calls would require being recorded to provide possible instances of how customer follow-ups
can be efficiently done and utilized in schooling sessions to teach others. The other
recommendation is hiring a qualified workforce (Ziegenfuss 2007). As such, the organization
should consider searching the best talent while recruiting workers. The eligible employees
would always manufacture vehicles that would be meeting the customers' requirements.
Through producing modified cars, the company would be capable of maintaining
competitiveness in the current dynamic and aggressive market. The other recommendation
would be engagement in research and development (Guffey and Almonte 2015). As such, the
management should encourage employees to engage in thorough research of design
modification to create the most innovative vehicles in the market.
Therefore, the necessary resources should be availed to the employees and creative
workers ought to be supported and encouraged. The other recommendation is selling the
vehicles at lower prices than the competitors. As such, the firm should investigate the prices
of other car manufacturers to lower its prices slightly for the purpose of regaining customers.
The other recommendation of restoring customers is crafting a written sketch for getting the
lost customers back (Guffey and Almonte 2015). That would entail laying out timelines and
benchmarks for the moment of contacting the customers. It should not take long before
checking them in. As such, Mitsubishi Motors should search ways of staying on the radar of a
client through courteously touching foundation occasionally.
The other recommendation is demanding permission from customers to send them
business data (Blattberg and Allenby 2015). That would involve making a marketing list
which is for unique outlooks and previous clients. That list ought to be utilized in sending
education and information on company topics which they have an interest. The company

should conduct an investigation of the entire sales it has won and the unique thing that made
the customers choose them. Lastly, it should match the obtained lists against the cut-throat
strengths of the company. The company should concentrate on providing its brand promise
and caring for client experience. The other recommendation is being honest and open through
showing the customers that the organization is aware that it made a mistake (Ziegenfuss
2007). Mitsubishi Motors should then demand feedback from the customers.
The company should listen attentively to what the customers would be saying and
then begin making the suitable changes and inform them what it has been done while
ensuring continual listening. After making the essential changes and telling the customers, the
corporation should ask the customers whether the changes made are satisfying their needs.
The other recommendation is apologizing to the customers (Guffey and Almonte 2015). As
such, the top management should come out and begin making apologies to the customers
instead of making scapegoat statements. For example, the company’s CEO should apologize
to the public for the incident and inform them that quick and necessary measures have started
being implemented to rectify the situation.

Bibliography
Blattberg, R.C., & Allenby, G. M. (2010). Perspectives on Promotion and Database
Marketing: The Collected Works of Robert C Blattberg. Singapore: World Scientific.
CNBC 2016, Mitsubishi Fuel Economy Cheating a Reminder of 2000 Safety Scandal. Viewed
14 May 2016 <http://www.cnbc.com/2016/04/21/mitsubishi-fuel-economy-cheating-
a-reminder-of-2000-safety-scandal.html>.
Guffey, M. E., and Almonte, R. (2010). Essentials of Business Communication. Toronto:
Nelson Education.
Live Charts 2015, Mitsubishi Corp. Share Price Chart. Viewed 14 May 2016
<http://www.livecharts.co.uk/share_prices/MBC-stock-chart-technical-analysis>.
Teamliquid 2016, The End of Mitsubishi? Fuel Economy Scandal. Viewed 14 May 2016
<http://www.teamliquid.net/forum/closed-threads/508256-the-end-of-mitsubishi-
fuel-economy-scandal>.
Tutt, P 2016, Mitsubishi Motors Says Manipulated Fuel Economy Tests, Shares Tumble.
Viewed 14 May 2016 <http://www.cnbc.com/2016/04/20/mitsubishi-motors-shares-
tumble-company-to-brief-on-misconduct.html>.
Ziegenfuss, J. T. (2007). Customer Friendly: The Organizational Architecture of Service.
Lanham, MD: University Press of America.

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