The Quality Matters Advisory Committee (QMAC) held its 12^th session at the Mitsubishi Motors Corporation head office from 4:00pm to 5:00pm on Wednesday 29 August. QMAC chairman Mr Akira Fujishima dissolved the Committee after presenting its final report and summing up as follows: "After examining all the remedial measures and action formulated and implemented by MMC over the course of 12 sessions of the QMAC, today's included, the Committee recognizes that MMC is steadily implementing measures to improve the corporate culture and business process of the company, as well as to improve quality levels. At the same time, the Committee urges the company to continue its efforts to improve quality, to make its products more competitive, to improve employee morale and to restore the brand image".

At the 29 August QMAC session, MMC president Mr Takashi Sonobe stressed, "MMC will, obeying the law at all times, continue to tackle the task of improving quality levels, boosting product competitiveness and improving internal & external communications".

After the inaugural session on 22 September 2000, the QMAC convened once a month for a total of 12 sessions.

MMC set up the Quality Issue Action Committee (QIAC) on 10 August 2000 to examine company-wide measures for improving quality levels in all development, production, sales and after-sales service activities. This work was assigned to four subcommittees: (1) Design & Production Quality; (2) Sales & After-sales Service Quality; (3) Quality Management Organization; (4) Reforms in Quality Awareness. The QMAC was composed chiefly of experts in various fields from outside the company who presented their opinions about, and recommendations on, the action the company was taking to deal with quality issues. The QAC took these opinions and recommendations into account in its formulation of specific measures designed to remedy the issues.

Initially, the QMAC examined specific quality-related action for passenger cars and for trucks and buses on a separate basis. At the 9^th session, in May 2001, committee members Mr Koji Okazaki and Mr Takao Enkawa commended the progress made in implementing remedial measures at production facilities after inspection visits to MMC's Okazaki and Kyoto Plants respectively. From the 10^th session, the QMAC examined passenger car and truck and bus matters together. At the 12^th session, the QMAC confirmed that specific remedies had been implemented for all quality-related issues and, the originally planned term of one year having been served, decided to dissolve.

1. QMAC Mission

1. To evaluate, and make recommendations on, quality-issue remedies
2. To monitor progress in implementation of remedies
3. To monitor running of quality management organization

2. QMAC members

• Mr Akira Fujishima
  (former Supreme Court judge; lawyer with Fuji Godo Law Office)
• Mr Koji Okazaki
  (Automotive Journalist)
• Mr Takao Enkawa
  (Professor at Tokyo Institute of Technology)
• Mr Ulrich W. Walker
  (Member of the Board of MMC)
• Mr Per Nordsjo
  (Quality Director of Volvo Truck Corporationresign in April, 2001)
• Mr Hiroshi Nanjo
  (Managing director of Mitsubishi Heavy Industries Ltd., Statutory auditor of MMC)
• Mr Takahiko Tsuyano
  (statutory auditor, MMC)

3. Abridged comment by QMAC chairman, Mr Fujishima

The QMAC has completed a comprehensive and detailed survey of all quality-related actions taken by MMC. We are pleased to see significant progress in many areas. To build on this progress, we have the following recommendations for further action:

• There have been substantial improvements in MMC's business processes and overall corporate culture. It is essential that these changes be spread further throughout the entire company, including our sales companies, to become the roots of our new corporate culture.
• There has been substantial action to implement quality-related remedies through the introduction of the Quality Check Gate system and by increasing the number of quality management personnel. The company's next task is to make it apparent to the customers that these improvements are now part of MMC's total business operations.
• Aside from the quality matters, issues that MMC has to make further efforts to resolve include: improving product competitiveness, improving internal communications, and boosting the morale of all MMC group staff, including those in sales.
• We also urge that the company take stronger, more positive steps in using market information to restore the reputation of the MMC brand.

4. Abridged comment by MMC president, Mr Sonobe

I wish to thank the members of the QMAC for the helpful opinions they have voiced from their own positions of expertise. MMC will, obeying the law at all times, continue to tackle the task of improving quality levels, boosting product competitiveness and improving internal & external communications. As well as restoring our corporate performance through the early achievement of Turnaround, MMC will also be making the utmost effort to repair and restore the MMC brand image at the earliest possible time.

As company president, I intend to display the leadership needed to enable MMC to meet the expectations of its customers, shareholders and all employees in the MMC group, and as such I respectfully ask the members of the QMAC for their continued support.