Statement from MITSUBISHI MOTORS CORPORATION (MMC) regarding the gradual withdrawal from the European market.
The Japanese brand has announced its three-year mid-term business plan (from fiscal 2020 to 2022), ‘Small but Beautiful’, to concentrate its management resources on its core regions and technologies. This plan focuses on cost rationalization and profitability enhancement to realize solid management foundation aiming at sustainable growth after the plan’s three-year period.
The Small but Beautiful plan is based on structural reforms to significantly reduce fixed costs by production capacity optimization, the regional strategy as well as the product/technology strategies. Under this initiative, MMC will concentrate its management resources on the ASEAN region, where it is competitive. Also, MMC will expand its profitability by further enhancement of its unique, competitive-edge technologies such as PHEV, HEV and 4WD, also by introduction of cutting-edge models leveraging the Alliance partners’ technologies. By integrating those technologies, MMC will launch environmentally friendly models that contribute to developing a society where people, cars, and nature can coexist in harmony.
“We will shift our strategy from all-round expansion to selection and concentration,” said Takao Kato, representative executive officer and chief executive officer, MMC. “First of all, we will complete our structural reforms and further strengthen our competitive areas—ultimately to build a corporate structure that can surely generate profits during this mid-term period.”
The main actions of this plan are as follows:
- Reducing fixed costs by 20 percent or more compared to FY2019, and concentrating investment on core regions and technologies to enhance profitability
- Focusing management resources on ASEAN, and increasing the market share there to more than 11 percent
- Developing businesses in Africa, Oceania and South America as the second pillar following ASEAN
- Strengthening eco-friendly model lineup such as of PHEV and EV by launching new models by FY2022, and introducing new models including SUV, pickup truck and MPV in ASEAN from FY2022 onwards