Surmounting a difficult operating environment, Mitsubishi Motors has revitalized itself by restructuring in mature markets and growing in emerging markets.
Plagued by a combination of factors, such as recall issues and an erroneous sales strategy in the United States, in 2004 Mitsubishi Motors was in a state of management crisis. Steadily rebuilding itself through the support of three Mitsubishi Group companies, by fiscal 2007 performance had recovered, and the Company was again delivering record levels of operating income and ordinary income.
Thereafter, however, the Company was hit by the global economic and financial crisis of 2008. In 2011, this was followed by such natural disasters as the Great East Japan Earthquake and flooding in Thailand. In 2012, performance was affected by anti-Japanese sentiment in China, and extremely high yen exchange rates prevailed throughout this period.
Despite this adverse operating environment, we have moved forward with successive mid-term business plans: the Mitsubishi Motors Revitalization Plan, launched in fiscal 2005; Step Up 2010, from fiscal 2008; and Jump 2013, introduced in fiscal 2011. Throughout the course of these plans, we have worked to bolster our regional and product strengths and transform our cost structure by optimizing our manufacturing system. As a result, we have made steady gains in profitability.
As a result, in fiscal 2012 we chalked up a new record for net income. In fiscal 2013, operating income, ordinary income and net income all reached historic highs, surpassing the profit targets we had set in Jump 2013.