Mid-Term Business Plan
In this section, we present our mid-term business plan.
Mid-Term Business Plan: "Jump 2013"
Mitsubishi Motors Corporation (MMC) 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".
Overview of the Mid-Term Business Plan: "Jump 2013"
Profit Targets
| ( 100 million yen / 000 units ) | |||||||||||||||||||||
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| *1 | Displayed in renewed count ( current count: 1,124 ) Change in counting method: excluding models that’s not under Mitsubishi brand |
Business Strategy
- Product strategy
- Product-wise, MMC will be launching 8 new electric-powered vehicles*2 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.
*2 This includes both electric vehicles and plug-in hybrid vehicles.
- Regional strategies
- 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*3).
*3 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.
Improved Efficiency in Global Production- 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.
Reforming the Cost Structure- 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.
Alliance Strategy- Alongside the ongoing business alliance with PSA Peugeot Citroen, 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.
Profit Targets- 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.
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