Mitsubishi Motors Makes Changes to Organization Tokyo, March 31, 2005 — Mitsubishi Motors Corporation today announced it is to make the changes described below to its corporate organization in order to promote and follow up the Mitsubishi Motors Revitalization Plan announced on January 28 and to achieve the targets laid down in the plan. The changes will take effect on April 1, 2005. New organization chart [ Revised Organizational Structure as of April 1, 2005 (PDF: 1page, 81KB) ] [ Organization Chart as of April 1, 2005 (PDF: 1page, 566KB) ] Purpose of changes (1) Consolidation of chains of command / Clarification of accountability The reporting lines of chairman, president and each function will be consolidated to expedite the decision-making process and to enhance internal communications. In addition, the organizational units1 currently in place will be consolidated and streamlined into eight Headquarters2 in a move designed to clarify areas of accountability. Accompanying the consolidation of the lines of command, positions such as CEO and COO will be abolished. 1 Current structure: (1) Units reporting directly to CEO: CSR Promotion Office, Finance Group Headquarters, Group Corporate Strategy Office, Secretariat of Revitalization Committee. (2) Units reporting directly to COO: Quality Affairs Office, Corporate Affairs Office, Product Operations Group Headquarters, Domestic Operations Group Headquarters, Overseas Operations Group Headquarters, Production & Logistics Office, Global Aftersales Office. 2 New structure: CSR Headquarters; Finance Group Headquarters; Corporate Planning, Corporate Affairs & Quality Affairs Group Headquarters; Product Development Group Headquarters; Production Group Headquarters; Global Procurement Group Headquarters; Domestic Operations Group Headquarters; Overseas Operations Group Headquarters. The CSR HQ will report directly to the president. In each of the other seven headquarters, the head officer will have full responsibility for the execution of all work and duties. (2) Building follow up structures and boosting strategy functions i. Appointment of vice president The new post of vice-president is to be created. The vice president will be responsible for the promotion and follow up of the Mitsubishi Motors Revitalization Plan and for ensuring the targets laid down in the plan are met and that the plan is successfully accomplished. ii. New Revitalization Promotion Department A new Revitalization Promotion Department will be created within the Corporate Planning Office. The department will be responsible for the formulation, rolling out and follow up of both numerical and policy aspects of corporate strategy in general and concentrating on the Mitsubishi Motors Revitalization Plan in particular. The department will also function as a control tower in ensuring full implementation of the company's selection & concentration policy. The Revitalization Promotion Department will also function in formulating and in promoting company-wide and cross-functional measures. (Examples include company-wide cost reduction activities as put forward by the Cross Functional Teams and activities directed towards solving company-wide issues and challenges.) iii. New Marketing Strategy and Advertising Departments New Marketing Strategy and Advertising Departments will be created within the Corporate Planning Office. These departments will play a vital role in keeping marketing and advertising strategy in line with corporate strategy. In addition, standing independent of product development and sales functions, they will function as a control tower through their efforts to rebuild the Mitsubishi Motors brand and to strengthen marketing functions. (3) Bolstering revitalization plan structures and systems i. Specific functions and work processes currently handled by the Corporate Affairs Office will be transferred to the units best qualified to execute and carry them out. This will expedite the decision-making process, raise organizational management efficiencies and raise work process efficiencies. More specifically, the Legal Department and the Intellectual Property Department, a large proportion of the work in which is administrative in nature, will be transferred to the Corporate Affairs Office from the CSR Promotion Office and from the Corporate Strategy Office respectively. In addition, marketing functions that have to date been split between the Group Corporate Strategy Office and Overseas Operations Group Headquarters will be consolidated and transferred to a new Marketing Strategy Department within the Corporate Planning Office. ii. The organization of the vehicle model-based and function-based matrix at Product Development Group Headquarters will be more clearly defined. This will raise development efficiencies as well as promote the accumulation of developed technologies as well as encourage the sharing of technical developments within the headquarters. More specifically, the Product Development Office will be abolished and all PX and Product Management & Product Development projects will come under the direct control of Product Development Group Headquarters. The functional departments (Advanced Development, Body Design, Vehicle Testing, Powertrain and Development Promotion) that to date have been divided between the Product Development Office and Development Engineering Center will be consolidated in the Development Engineering Center. This will be renamed the Development Engineering Office. iii. New Controlling & Accounting and Finance Offices will be created in Finance Group Headquarters, and Production Engineering and Production Control Offices will be set up in Production Group Headquarters. These new units will enhance the functions, clarify accountability and expedite the decision-making process in the respective headquarters. iv. The Global Procurement Office will be detached from Production Operations Headquarters. The office's Accountability and authority will be more clearly defined and its ties to development and production units will be strengthened. These moves are designed to promote achievement of the reductions in material costs that constitutes a major theme of the Mitsubishi Motors Revitalization Plan.