In addition to developing next-generation engines that deliver both driving and environmental performance, we will continue moving forward with proprietary technologies such as the S-AWC four-wheel integrated vehicle dynamics control system and a group of active safety technologies that are used in the outlander, called “e-Assist.*”We will also expand the range of model in which those technologies are utilized. Moreover, MMC will aggressively pursue the integration of information technology in vehicles by adopting “connected car” technology, which connects vehicles to the Internet using smartphones.
*"e-Assist” name used in Japan only.
Strengthen Regional Strategies
We have been working proactively to strengthen our business in emerging market. Particularly in ASEAN countries, China and Russia, Mitsubishi Motor has prepared a foundation for the future expansion of profits in individual regions by establishing new plans and commencing production at joint venture companies. We expect these efforts to deliver steady results, and we will push forward with measures to bolster sales and profits in emerging markets, centering on Asia.
We will accelerate structural reform efforts in mature markets with the aim of improving profits. In Japan, we aim to develop the minicar business further through NMKV, our joint venture with Nissan Motor Company that designs and develops minicars. At the same time, we will work towards improving sales efficiency and profitability by narrowing the number of model and expanding sales volume per model. In North America, we aim to improve production efficiency at U.S. plants by manufacturing vehicles for export. In Europe, where we lowered fixed costs and improved profitability through the 2012 sale of production subsidiary Netherlands Car B.V. (Need car),we will work to recover sales volume and expand profits by maximizing the effect of the introduction of major models such as the new Triton.
Restructure operations
We will move aggressively forward with reforms to operating structure. Specifically, we aim to achieve an optimal balance in our global production capacity. On the one hand, we will expand production in emerging markets, where demand is expected to grow. In mature markets, on the other hand, we intend to maintain adequate capacity while moving forward with streamlining our plants and introducing next-generation technology. We expect our overseas production ratio to grow as a result of these moves. Meanwhile, in japan we are increasing the utilization rate at the Mizushima plant, which is the base of minicar manufacturing through projects carried out by NMKV-our minicar planning and development joint venture with Nissan Motor. We will also move ahead proactively with effective use of resources through business partnerships.
In addition, we are cutting costs by reorganization and integrating our car lines. By reducing the number of previous-generation and region-specific models, we plan to reduce our number of platforms from nine as of fiscal 2013 to seven by the end of fiscal 2016, and decrease the number of models from 18 to 13 over that period. We expect to reduce fixed costs, in particular, by augmenting sales volume per model and per platform.
We will continue with activities aimed at curtailing total costs under a committee controlled directly by the president that has been achieving steady results. Through these efforts, we aim to lower groupwide costs by fiscal 2016 by around ¥110 billion compared with fiscal 2013 levels.