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Tokyo, 27 June 2000: Mitsubishi Motors Corporation announces that,
effective 27 June, it will implement the major reorganization outlined
below in order to strengthen the organizational base of its passenger
car operations in North America.
I. Purpose and aims of reorganization
To date, the activities of MMC passenger car manufacturing (Mitsubishi
Motor Manufacturing of America, Inc., MMMA) and sales (Mitsubishi Motor
Sales of America, Inc., MMSA) companies in North America have been supervised
and coordinated by the Office of North America Car Operations in Tokyo.
With a view to speeding up the decision-making process, raising operating
efficiencies and expanding the activities of these companies in a more
unified manner, MMC has decided to establish a new supervisory unit
based in North America, to which the core functions of the Office of
North America Car Operations will be transferred. At the same time,
MMC will reorganize its operations in North America to closely integrate
the management of MMMA and MMSA around the new supervisory unit.
Under its new Heart-Beat 21 mid-term management plan, MMC is aiming
to expand sales in North America to the 300,000 unit level at the earliest
possible time, and to 400,000 by 2005. Sales of Mitsubishi brand cars
in 1999 were 261,254 units, a new record for the company. And after
set-ting a single-month record of 29,390 units in May and cumulative
sales for January to May of 124,243 units - a 34 percent increase over
the same period last year - there are good prospects that 2000 sales
volume will surpass the 1999 figure by a considerable margin. The restructuring
and organization strengthening program the company has embarked upon
will provide a major stepping stone in the achievement of these targets.
II. Details of reorganization
1.Supervisory unit
(1) Supervisory company
Mitsubishi Motors America, Inc. (MMA, Southfield, Michigan), MMC's
market research and information gathering unit in North America, is
to be reorganized to undertake the role of supervising MMC passenger
car operations in North America, and is to be relocated to Cypress,
California.
(2) North America Operations Committee
A new inter-group committee is to be established to supervise strategy
and policy implementation for the whole of North America. The North
America Operations Committee will comprise the CEO's, COO's and other
senior officers of MMC group companies in North America.
2.Integration, consolidation of duties and functions
(1) Business planning
The business planning functions at Mitsubishi Motor Manufacturing
of America, Inc. (Normal, Illinois) and Mitsubishi Motor Sales of
America, Inc. (Cypress, California) will be transferred to, and integrated
at, a new office of strategy planning to be established at the new
supervisory company.
(2) Administrative duties
Core administrative duties at MMMA, MMSA and Mitsubishi Motors R&D
of America (Ann Arbor, Michigan) will be transferred to, and integrated
at, the new supervisory company in stages.
The relationship between the new supervisory company and the operating
companies will be made quite clear. Personnel, legal and accounting
functions will also be integrated with the ex-ception of those areas
of these functions that, by their nature, are required to remain in
place at the companies concerned.
(3) Product planning
The product planning functions previously belonging to MMA and MMSA
will be integrated at MMSA.
(4) Market quality functions
The market quality assurance functions previously shared between
MMA, MMSA and MRDA will be transferred to and integrated at the new
supervisory company.
Note. The North America Administration Office, newly established under
Office of Interna-tional Car Operations in the organizational changes
announced 15 June and becoming effective on 27 June, will be responsible
for coordinating planning-related matters at MMC itself, and matters
relating to the business plans of individual MMC group companies in
North America, between the relevant departments at MMC.
Organization of MMC North America car operations (FYI)
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