After a briefing by the company the Committee discussed the following agenda: (1) Fiscal 2004 financial results; (2) Implementation of compliance measures at affiliated sales companies in Japan; (3) Progress of improvements in the process by which decisions are made on whether to file a recall. The views expressed and recommendations made by the Committee are summarized below.

1. FY2004 full-year results

• While the Committee notes that the full-year results for fiscal 2004 were in line with the forecasts given in the Mitsubishi Motors Revitalization Plan published in January, it urges the company to ensure that all employees recognize the seriousness of the massive deficit and make every effort in revitalizing the operations of their company.

2. Implementation of compliance measures at affiliated sales companies in Japan

• In terms of measures for improving Customer Satisfaction, the Committee feels there are problems about the thoroughness with which those relating to sales activities at showrooms are being implemented. The Committee points out that high showroom visit rates reflect an eagerness on the part of customers to come in. The Committee therefore recommends that in their efforts to attract more people to the showroom sales companies should identify their customer targets more clearly.
• The Committee understands that the problems at the manufacturer meant that sales companies went through a very difficult time last year. The Committee wishes to point out, however, that now the company has put those problems behind it the sales companies must join hands with Mitsubishi Motors and work together in regaining customer trust. The Committee entreats the sales companies to approach this task with total earnestness.
• The Committee asks the company to provide the necessary guidance on and to follow up the building of compliance structures in place at sales companies to ensure that they go beyond being a token gesture and function fully.
• The Committee wishes to point out that customer satisfaction is a priority objective for sales companies and that it is vital for staff to have the kind of personality that invites trust from customers. The Committee recognizes that in some respects sales companies have been placed in an unenviable position but urges them to grapple sincerely with the challenge of how to raise levels of customer satisfaction. The Committee urges sales companies to reexamine their internal customer service programs and training manuals.
• The Committee asks sales companies to do the following: Configure systems that accurately deliver unfavorable information, particularly that related to Mitsubishi cars, to the manufacturer; Encourage sales staff to approach their work with a passion.
• The Committee points out that for the public at large to feel that Mitsubishi Motors has changed two things are required: First and foremost, the manufacturer itself must change; but there must also be change on the part of sales companies in their role as the direct contact point for the car-buying public. The Committee urges sales companies to make a start on implementing the necessary reforms immediately.

Reforms in recall filing process

• The Committee is happy to learn that cases of reported defects where a decision not to file a recall with the authorities has been taken are now also reported to the Board of Directors. The Committee looks forward to deliberating other specific remedial measures for the process once the company has given them further consideration.

The sixteenth meeting of the business ethics committee has been scheduled for June.

Noboru Matsuda
Business Ethics Committee Chairman