Based in Amsterdam, the new MME will handle sales, marketing and distribution of Mitsubishi Motors passenger cars, parts and accessories in Europe, as well as head and oversee the local production of cars (NedCar, IPF) and the local production of engines at the new engine plant (MDC Power GmbH) jointly with DaimlerChrysler.

"This new structure will be clearer for all our partners with a unified, logical and lean organization," said Steven Torok, MMC's executive vice president in charge of car operations. "It also stresses a new identity with MME as a strategic entity within the turned-around MMC."

Today's announcement concludes a milestone year for MMC in Europe. Despite an overall European market decline, MMC forecasts full-year sales to stabilize above the 200,000 unit level. MMC expects to halve its losses in FY2002 compared to FY2001 by focusing on profit-generating models, reorganizing its sales network and reorganizing production at its NedCar plant in the Netherlands, which is set to produce a new compact car for Europe from 2004 as part of MMC's alliance with DaimlerChrysler.

MME will operate out of brand new premises in Amsterdam, where it is joined by its Dutch distributor and affiliate, Mitsubishi Motor Sales Netherlands, as well as Mitsubishi Trucks Europe.