Press Release

Revision of Organization

Date: June. 24, 2002

1. Effective date June 25, 2002

2. Purport and gist of revision

(1)	To promote strongly Turnaround Plan.
(2)	To reconstruct functions of corporate affairs & strategy.
(3)	To make improvements to report line for quick decision and rationalization mainly in Car Operations.
(4)	To strengthen organization with improvements for car design, product planning, product development, production and overseas operations.

Organization Names, etc. after Revision of Organization

Purport & Gist

I. "Directly Report to Chairman of the Board"

<Purport>
To separate this External Affairs from "Communication Office" and to establish more flexible system of it.
<Gist>
1.	To have staffs in "Directly Report to Chairman of the Board" and to transfer External Affairs to this "Directly Report to Chairman of the Board" from "Communication Office".
2.	"Directly Report to Chairman of the Board" is not an organization.

II. "CEO's Office"

<Purport>
1.	To strengthen organization for CEO's follow-up activity.
2.	As responsibility and authority of CEO are clarified in the Rules of Company Organization as follows, the relationship of CEO, the Board of Directors and the Executive Committee should be strengthened.
"CEO shall administer the general affairs of the Company as in accordance with the resolutions of the Board of Directors and the Executive Committee and execute the resolutions and decisions of the Board of Directors and of the Executive Committee."
<Gist>
1.	To create "CEO's Office" which will be as "Directly Report to CEO.
2.	"CEO's Office" will be in charge of special affairs designated by CEO.
3.	To transfer "Corporate Governance Team" into this "CEO's Office" from "Strategy & Planning Office".

III. "Directly report to CFO" and "Corporate Controlling"

<Purport>
1.	To strengthen IR activity of MMC Group.
2.	Controlling affairs are to be collected into a specialized section following reexamination of business of "Turnaround Office".
<Gist>
1.	To create "IR Office" which is "Directly report to CFO"
2.	To transfer IR affairs of "Corporate Communications Dept." of "Communication Office" to this "IR Office".
3.	To transfer the function of "Turnaround Controlling Dept." of "Turnaround Office" to "Group Controlling Dept." of "Corporate Controlling".

IV. "Business Development Office", "Mergers & Acquisition Office", and "Corporate Communications Office"

<Purport>
1.	Consolidation of functions of "Strategy & Planning Office" and "Turnaround Office" into one organization to make improvements to report line and make quick decision.
2.	Set up independent merger & acquisition function to realize outsourcing and joint venture opportunities.
3.	Strategically important issue like environmental issues and financial services will be handled in business development function for the time being.
<Gist>
1.	To divide "Corporate Affairs & Strategy Office" into "Business Development Office", "Mergers & Acquisition Office" and "Corporate Communications Office"(renamed from "Communication Office"), those will directly report to CEO.
2.	To transfer affairs done by "Strategy & Planning Office" and "Turnaround Office" to "Business Development Office", "Mergers & Acquisition Office", etc.
3.	"Business Development Office" will be set up as follows.
	(1)	To create "Corporate Strategy/Alliance Dept." and to incorporate "Corporate Strategy Team" and "Research & Benchmarking Team" of "Strategy & Planning Office" into this "Corporate Strategy/Alliance Dept."
	(2)	"Turnaround Office" will be incorporated into this "Business Development Office" and change to the "Department" level. "Turnaround Office" will be in charge of promoting and supporting for Business Process Reengineering (BPR) and other Turnaround activity.
	(3)	"Environmental & Technical Affairs Dept." and "Recycle Promotion Office" will be incorporated into this "Business Development Office".
	(4)	To create "Sales Finance Strategy Team."
4.	"Mergers & Acquisition Office" will be set up as follows.
	(1)	"M&A team" will be incorporated into "Mergers & Acquisition Office" from"Strategy & Planning Office", and "Mergers & Acquisition Office" will have "Business Focus Team" and "M&A Team".
	(2)	To create "Internal Audit Team".
	(3)	"TMB Preparation Office" will be incorporated into this "Mergers & Acquisition Office" from "Corporate Affairs & Strategy Office".
5.	To create "Internal & Net Communications Dept." in "Corporate Communications Office" and functions of Turnaround communication of "Directly report to Turnaround Office" will be transferred to this "Internal & Net Communications Dept."

V. "Car Product Operations Group Headquarters"

<Purport>
To make improvements to report line and make quick decision.
<Gist>
1.	"Car Product Operations Group Headquarters" will be a generic expression for functions responsible for "Car Product Design Office"(referred on below VI.), "Car Product Planning & Program Management Office" (referred on below VII.), "Car Research & Development Office" (referred on below VIII.), "Global Procurement & Supply Office" and "Global Production Headquarters"(referred on below IX.). This "Car Product Operations Group Headquarters" is not an organization.
2.	In accordance with above mentioned item 1., "Car R&D/Marketing Headquarters" will be abolished.

VI. "Car Product Design Office"

<Purport>
1.	Improve the design quality and the development efficiency by the clarification of the roles between Design Strategy, Advanced Design, Product Design, and Development Foundation.
2.	Establish MMC design image with the intensity of the design strategy.
3.	Target-oriented design development by organization of Project by segment.
4.	Intensify cross-functional relationship with Car Brand Management & Marketing Communications, Car Marketing Office, and Car Research & Development Office by placing PM.
<Gist>
1.	To create "Advanced Design Block" and "Product Design Block" in this "Car Product Design Office".
2.	"Advanced Design Block" will have departments of "Advanced Styling Design Dept.", and Design Strategy function as under the "Directly Report to the Office" and will control design development in the oversea studios.
3.	"Product Design Block" will have "SUV Project", "Passenger Car Project", "Minivan Project", and "Kei Car Project". Each Project will have a flexible design development system with the intensity of the cross-functional relationship with Brand, Marketing, and R & D.
4.	"Styling Design Engineering & Administration Dept." will be divided into "Design Engineering & Administration Dept." and "Planning Control Dept."
5.	"Planning Control Dept." will have the function to control project design, SCAD, and model engineering, which will collaborate with each Project for effective design development.
6.	"Design Engineering & Administration Dept." will manage all of this "Car Product Design Office" and all of studios and will support advanced engineering development for all of studios.
7.	"Block" and "Project" are generic expressions for functions and are not organizations.

VII. "Car Product Planning & Program Management Office"

<Purport>
1.	By this reorganization, it will be possible to have a Multi Project Management across "New Product Project" as well as strengthening the importance of the Long range product plan. . "New Product Project" (SPLs) will be incorporated into this "Car Product Planning & Program Management Office".
2.	To integrate further the related functions, "Car Brand Management & Marketing Communications Departments" will be incorporated into this "Car Product Planning & Program Management Office" and will be renamed as "Corporate Marketing & Motorsports Departments". In addition, to create "Motorsports Dept." which will take care of both the racing, management and business aspects of motorsports.
<Gist>
1.	To rename "Car Marketing Office" as "Car Product Planning & Program Management Office".
2.	To incorporate "New Product Project" and "Corporate Marketing & Motorsports Departments" (renamed from "Car Brand Management & Marketing Communications Departments") into this "Car Product Planning & Program Management Office" from "Car R&D/Marketing Headquarters".
3.	To create "Powertrain and Program Coordination Dept." within this "Car Product Planning & Program Management Office".
4.	To transfer affairs of "Product Management Department Pickups/Van & Powertrain/Telematic" to "Product Management Department MPV/SUV" (which will be renamed as "Product Management Department MPV/SUV/Pickups"), "Product Management Department Mini Cars"(which will be renamed as "Product Management Department Mini Cars/Vans"), "Market Research & Planning Department" and "Powertrain and Program Coordination Dept." Consequently, "Product Management Department MPV/SUV" will be abolished.
5.	To create "Motorsports Dept." within "Corporate Marketing & Motorsports Departments" and "Accessories Development Dept." will be incorporated into this "Corporate Marketing & Motorsports Departments" from "Direct Report to Car Marketing Office".
6.	To incorporate "Global Aftersales Dept." to "Domestic Car Sales & Marketing Headquarters" and to rename as "After-sales Planning & Projects Dept.

VIII. "Car Research & Development Office"

<Purport>
1.	Within "Car Research & Development Office", new efficient organization will be established, so as to create more marketable & high quality products following further enhancement of cross-functional operation.
2.	The aim of revision of organization is as follows.
	(1) Best fit to alliance work with DC and maximize synergy effects.
<Gist>
"Car Research & Development Office" will be reorganized mainly based upon "Competence Centers" and "Functional Blocks" as follows.
1.	"Competence Center"
	(1)	To create "A&B Segment Competence Center", "C&D Segment Competence Center" and "RV Segment Competence Center" and each Competence Center will perform of development for A&B segment (Mini Car/Z Compact Car class), C&D segment (Lancer / Galant class) and RV(Chariot Grandis / Pajero class) Segment.
	(2)	Each "Competence Center" will consist of "Product Development Project", "Vehicle Design Team", "Vehicle Testing Team", and "Powertrain Development Team" and each "Competence Center" will be managed flexibly in core of Project Manager in more Project oriented.
2.	"Functional Blocks"
	(1)	"Research Block" appoints technical field leaders (dual-assignment) in each Technology Block and has operation by using dual-assignment engineers of Technology Block & other Offices, other Offices, development departments of DC, suppliers and outside institutes.
	(2)	"Advanced Development Block" will consist of "Advanced Development Project", "Advanced Engineering Concept Dept.", "Advanced Engineering Strategy Dept." and "Studio Packaging Engineering Dept."
	I.	Responsible for advanced product projects before target of user & profitability, component strategy, studio engineering and packaging engineering.
	(3)	"Vehicle Common Technology Block" will consist of "Basic Chassis & Body Development Dept.", "Vehicle Testing Dept.", "Electrical/Electronics System Dept.", "Advanced Electrical/Electronics Dept.", "Material Engineering Dept." and "Digital Technology Dept."
	I.	Vehicle Technology Block is responsible for basic technology and common tasks related to car body.
	II.	Centralize vehicle development functions that will get more efficient by doing so.
	(4)	"Powertrain Common Technology Block" will consist of "Powertrain Development Dept." and "Advanced Powertrain Dept."
	I.	Powertrain Technology Block is responsible for development of basic technology and common tasks related to Powertrain across "Competence Center".
	II.	Centralize Powertrain development functions that will get more efficient by doing so.
	(5)	"Development Support Block" will consist of "Development Planning Dept.", "Intellectual Property Dept.", "Certification & Regulation Compliance Dept.", "CS Engineering Dept." and "Prototype Dept."
	I.	Responsible for development support affairs and development circumference tasks to operate design and testing smoothly.
3.	To create "Development Promoting Office", "Engineering Verification Office", "R&D Collaboration Team" and "Motor Sport Team" as "Directly report to the Office".

IX. "Global Production Headquarters"

<Purport>
1.	To rename for clarification of promotion of global production organization.
2.	Optimize the duties of the Car Production Planning & Engineering Office as well as the duties that are carried out in cooperation with other departments.
<Gist>
1.	"Car Production Headquarters" will be renamed as "Global Production Headquarters"
2.	To create "Plant Logistics Planning & Production System Office" in "Global Production Headquarters" in order to study, promote and create a Mitsubishi Production System, and to organize 'stimulating workplace' activities and carry out changes to optimize overseas and domestic logistics.
3.	To create "Mitsubishi Production System Planning (MiPS) Dept.", "Overseas Plants Logistics Planning Dept." and "Domestic Plants Logistics Planning Dept." in this "Plant Logistics Planning & Production System Office".
4.	To transfer affairs of supplier support, quality planning, production engineering, tooling cost of purchasing parts, currently done by "Production Engineering Control Dept." of "Car Production Strategy & Planning Office", to "Quality Control Dept." of "Nagoya Plant" and "Mizushima Plant", "Directly Report to Car Production Strategy & Planning Office", each "Production Engineering Dept." of "Car Production Strategy & Planning Office" and "Product Controlling Dept." of "Corporate Controlling".

X. "International Car Operations Group Headquarters"

<Purport>
1.	To strengthening overseas products proposal and marketing function.
2.	To create one office which controls such region of North America, Europe and Australia/NZ. This new office will make management for strategic plan made by "International Car Operations Group Headquarters" and a process for making business plan, administrate tasks done by foreign distributors and makes appropriate assistance for marketing plan.
3.	Efficient management of operation and organization.
4.	To strengthen market development.
5.	Establish clear reporting relationship to this Headquarters and other core corporate functions (i.e. production, procurement, R & D etc.)
6.	Tightening international controlling.
<Gist>
1.	"International Car Operations Group Headquarters" will be a generic expression for functions responsible for "Market Management Office", "International Services Office" (renamed from "International Car Administration Office"), "Asia, Latin America, Middle East & Africa Office" and "International Marketing Departments". This "International Car Operations Group Headquarters" is not an organization.
2.	To consolidate market management function for North America, Europe and Australia/New Zealand together with international product planning function (across all regions) in newly established "Market Management Office".
	(1)	"North America Dept." will be incorporated into this Office from "American Car Operations Office"
	(2)	"Europe Dept." will be incorporated into this Office from "European Car Operations Office"
	(3)	"International Product Management Dept." ( renamed from "International Product Planning & Marketing Dept.") will be incorporated into this Office from "International Services Office".
	(4)	To create "Australia/New Zealand Dept."
3.	To create "Operations Planning Dept." within "International Services Office", focusing on management reporting, organization planning, HR, IT planning, business process renewal and policy development. To bundle of some operational tasks currently performed in each Regional Department within "International Services Office" in order to realize efficiency gains.
4.	"Asia, Oceania, Middle East & Africa Car Operations Office" will be reamed as "Asia, Latin America, Middle East & Africa Office" and set as following.
	(1)	To reorganize "Asia Dept." and to create "North Asia Dept." (China, Taiwan and Korea) and to transfer the affairs related India, Sri Lanka, etc to "ASEAN Dept."
	(2)	"Latin America Dept." will be incorporated into this Office from "American Car Operations Office".
	(3)	"Oceania Dept." will be abolished.
5.	To create "International Marketing Departments" and this "Departments" will promote sales network, strategy for retail, advertisement, market valuation as prime affairs. This "Departments" set up as follows.
	(1)	To create "Network Development Dept." and "International Advertising & Promotion Dept."
6.	"Departments" are generic expressions for functions and are not organizations.
7.	In accordance with above mentioned item 1. to 6., "International Car Operations Headquarters", "American Car Operations Office", "European Car Operations Office" and "Sales Controlling & International Business Planning Dept." will be abolished.

XI. "Domestic Car Operations Headquarters"

<Purport>
1.	To reorganize "Office" to "Headquarters" for strengthening domestic car operations.
2.	To transfer "After-sales Planning & Projects Dept." (renamed from "Global Aftersales Dept.") to "Domestic Car Sales & Marketing Headquarters" with the General Manger being in charge of the Aftersales Committee covering domestic & international aftersales affairs.
<Gist>
1.	"Domestic Car Operations Office"will be changed to "Domestic Car Sales & Marketing Headquarters".
2.	"Global Aftersales Dept." of "Car Marketing Office" will be incorporated into this "Domestic Car Sales & Marketing Headquarters" and rename this Dept. as "After Sales Planning & Projects Dept."

XII. "Quality Management Office"

Quality Management Office" will directly report to CEO.

3. New Organization Chart (Amended Portion only)

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