3 August 1999, Tokyo: Mitsubishi Motors announces that, effective 1 October, it is to transfer the used car distribution business functions and personnel of the Clean-Car Department to Mitsubishi Motors Used Car Sales Co., Ltd. (MMUS) a newly formed company.

As part of the organizational reforms being carried out under its RM2001 (Renewal Mitsubishi 2001) mid-term management plan, the company has been looking at the outsourcing of various business operations--and the spinning off of specific departments and specific functions as separate companies in particular--as a way towards realizing optimal organizational size and efficiency.

Among the areas considered, the company has decided to spin off the used car distribution department into a separate company that will concentrate solely on used car distribution operations, which require a high degree of specialization--from both the technical and administrative aspect. In this way, the company looks forward to improved productivity, a greater permeation of cost awareness, and the training of able personnel, among other benefits.

The company currently supports used car distribution operations at its passenger car sales companies through the Mitsubishi Auto Auctions (MAA), held at the Clean-Car Department's Sales Centers in Tokyo, Nagoya and Osaka, and through the Used Car Inventory Information System (M-C Network). The decision to spin off the Clean-Car Department has been taken because the company wishes to augment the capabilities of the organization that are required to run auto auctions and other highly specialized operations, and because of opportunities to expand into wholesale and retail sales business. Mitsubishi Motors' Office of Domestic Car Operations will retain control of the formulation of policy, and the drafting, tuning and promotion of all matters related to used car sales planning.

As a specialist used car distribution operations enterprise, the new company will seek to expand its business by exploiting its resources and the know-how accumulated to date. For the time being, it will focus on running auto auctions and the used car inventory information system. Giving priority to supporting used car distribution operations at Mitsubishi Motors passenger car sales companies, the new company will gradually extend the scope of its activities and venture into the development and administration of new business areas, including wholesale and retail sales, and import and export of used cars.

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