Mitsubishi Motors announced the RM2001 (Renewal Mitsubishi) mid-term management plan in November, 1998. The primary objective of RM2001 is to put the company back on a profitable footing at the earliest possible time. In order to overcome world-wide competition, the company has accelerated implementation of the measures and attainment of the targets set out in RM2001. The company's efforts are paying off: virtually all targets for fiscal 1998 were attained and, in some cases, actually exceeded.

Japanese business has been beset by three "excesses" since the collapse of the economic bubble: plant, liabilities, and payroll. These excesses have been criticized by the market for adversely affecting management efficiency. The Mitsubishi Motors group of companies, following its corporate beliefs, is currently in the process of transforming policy to place higher priority on customer and shareholder needs. To this end, the company is implementing programs to reform employee awareness and to transform management, out of its recognition of the need to raise capital and asset efficiencies, to make more effective allocation of management resources, and to accelerate management decisions.

Further, to deal with the lag in economic recovery in Japan and the ASEAN block, the company is adding supplementary measures to RM2001 and bringing forward some targets. By reviewing progress on a three-monthly basis, the company intends to complete the objectives set out in RM2001 on, or even ahead of, schedule. The successful completion of RM2001 will enable the company to make substantial reductions in break-even points and sales volume in its passenger car, and truck and bus operations.