The center will be referred to as Mitsubishi Motors R&D Australia (MRDAus) and will enable MMAL to take an increased role in the development of Mitsubishi vehicles worldwide, including the development of two new models in Australia due for release post-2005.

"With the addition of an R&D center in Australia, our operations there will now become an integral part of our global design and engineering network," said MMC President and CEO Rolf Eckrodt. The move also confirms MMC's ongoing commitment to the Asia-Pacific region, an area where MMC has been traditionally strong and which forms a key part of its future overseas strategy. Other R&D centers are located in Japan, the United States, and Germany.

MRDAus will invest a total of A$12 million in upgrading and expanding the Mitsubishi test track facilities near Adelaide. It will include a new $10 million high-speed test track, making it one of the largest facilities of its kind in the Southern Hemisphere, allowing testing of cars beyond 200 km/h.

The creation of the R&D center with an expanded work force is resulting in expanded facilities for MMAL engineers, technicians and administrative staff. This includes an A$5 million information technology upgrade to improve the ability of its designers and engineers to work on-line with their counterparts in Japan, the US, and Europe.