| Mitsubishi Motors Corporation |
Article Index for Mitsubishi |
Website Links For Mitsubishi |
Information AboutMitsubishi Motors Corporation |
|
Mitsubishi Motors Corporation (in Keiretsu , formerly the largest industrial group in Japan . It is the fourth largest Automobile -manufacturer in the country. HISTORY Mitsubishi's automotive history dates back to 1917 when the Mitsubishi Model A, Japan's first series-production automobile, was introduced. In the following two decades, they were also responsible for Japan's first Diesel Engine , its first large-sized Bus (the start of the Fuso commercial vehicle series), its first Four-wheel Drive passenger car prototype, and its first diesel-powered Truck . At the end of the Second World War , Japan's large industrial groups were dismantled by order of the Allied Powers and Mitsubishi Heavy Industries was split into three regional companies, each with an involvement in motor vehicle development. The country's major need at this time was for commercial vehicles, the situation being further complicated during the first few years by a severe fuel shortage. Passenger vehicle production was confined primarily to Mitsubishi's first Scooter . By the beginning of the , fulfilled this need, followed in 1962 by a four-seater micro-compact with a two-stroke air-cooled 359cc engine, the Minica , which still lives today. The first ''' Colt ''' - a larger, more comfortable family car, not a predecessor of the modern Colt - was also introduced in the same year, and the first ''' Galant ''' in 1969 . With similar growth in its commercial vehicle production it was decided that the company should create a single operation to focus on the automotive industry, and so in 1970 the '''Mitsubishi Motors Corporation''' was formed. {Link without Title} THE CHRYSLER CONNECTION In 1971 , US automotive giant Chrysler took a 15% share in the new company. Over the next 25 years, the two companies would participate in numerous joint ventures and business deals. Examples include:
Despite their ongoing ties, relations between the two companies have fluctuated over time. Chrysler sold its stake in DSM to Mitsubishi in 1991, precipitating many rumours that the two would dissolve their union, but they continued to share components in their respective ranges throughout the 1990s until Chrysler's Merger with Daimler-Benz in 1998. Since then, Chrysler has tended to favour Mercedes platform-sharing as with the Chrysler Crossfire , but Mitsubishi is still involved in many joint ventures with the new company, e.g. the Smart Forfour . COLT & LONSDALE The Colt name appears frequently in Mitsubishi's history since its introduction as a rear-engined 600cc sedan in the early '60s. Today, it most commonly refers to the popular sub-compact model still in the company's line-up, but is also the name of MMC's import/distribution company in the UK , established in 1974. For the first decade of its existence, before Far Eastern auto manufacturers had established their reputations, its cars carried the 'Colt' badge in Britain instead of 'Mitsubishi'. In 1982 & '83 , Mitsubishi introduced the Chrysler Sigma (Australian-built Galants) to the UK as the '''Lonsdale Sigma''' in an attempt to circumvent Japanese voluntary import quotas, but the new brand was unsuccessful. For its final year, 1983 to 1984, it carried Mitsubishi Sigma badges in the UK before meeting its demise. HYUNDAI & PROTON Hyundai of South Korea and Proton of Malaysia , two of the most successful Tiger Economy auto-makers, both based their earliest cars on Mitsubishi technology. Korea's first car, the Hyundai Pony , was released in 1975 using MMC's Saturn Engine and transmissions, and remained in production for thirteen years. Proton were even more dependent on the Japanese company, initially only assembling their 1985 Proton Saga using MMC components at a newly established facility in Shah Alam . Subsequent models like the Wira and Perdana were based on the Lancer/Colt and Eterna respectively, before the company finally produced an entirely self-developed vehicle with 2001 's Waja . GOING DUTCH WITH VOLVO As Mitsubishi expanded in the 1990s , it participated in a joint venture called NedCar with rival truck-maker Volvo and the Dutch government, at the former DAF plant in Born . It is the largest car production plant in the Netherlands, and was used to produce the first generation Volvo S40/V40 and Mitsubishi Carisma from 1996. The Dutch government sold out to its partners in February 1999, and Volvo, by now owned by Ford , sold its stake to Mitsubishi in March 2001 to leave the Japanese company as the only remaining shareholder. The factory currently produces the latest Mitsubishi Colt and Smart Forfour superminis. THE DAIMLERCHRYSLER DEBACLE Two years after the merger of sold the shares on for an US$80m profit. {Link without Title} New major stockholder Phoenix Capital followed suit the following month, selling all but 50m of its 575m shares to JPMorgan on 9th December 2005. Once again, the investment bank offloaded their purchase within a few days for tens of millions in profit. In both cases, the eventual buyers were part of the Mitsubishi Keiretsu of companies, returning MMC to Japanese ownership once more. However, whether this improves its chances of long-term survival is still unknown. DECLINE SINCE 2000 Below is a chart showing the effects of recent events on Mitsubishi Motors' finances since the beginning of the decade, when the first defect scandal became public. Sales and revenue continue to fall as they struggle to regain market share, and their cumulative losses in the past five years now total almost a trillion yen (US$9bn): ''Note 1: The Fuso Truck & Bus subsiduary was spun off in 2003; subsequent sales figures only include passenger cars.'' ''Note 2: Mitsubishi Motor Sales America (MMSA) reported a record-breaking third quarter in 2000, and was expecting its best year since it was established in 1982. Until the scandals, Mitsubishi was the fastest-growing brand in the USA. Since then, sales have fallen in half.'' 0--0--0 In an effort to boost sales in the US at the start of the decade, Mitsubishi began offering a "0--0--0" finance offer ~ 0% down, 0% interest, and US$0 monthly payments (all repayments deferred for 12 months). Initially, sales leapt, but at the end of the year's 'grace period' numerous credit-risky buyers defaulted, leaving Mitsubishi with used vehicles for which they'd received no money and which were now worth less than they cost to manufacture. The company's American credit operation, MMCA, was eventually forced to make a US$454m provision against its 2003 accounts as a result of these losses. {Link without Title} VEHICLE DEFECT COVER-UP In possibly the biggest scandal to ever hit the Japanese auto industry, Mitsubishi was twice forced to admit to systematically covering up problems in its vehicles. Four defects were first publicized in 2000, but in 2004 it confessed to 26 more going back as far as 1977. The effect on the company was catastrophic, forcing it to recall 163,707 cars (156,433 in Japan and 7,274 overseas) for free repair. Further recalls by Fuso Truck & Bus brought the total number of vehicles requiring repair to almost one million. The scandal led to the resignation and arrest of former president Katsuhiko Kawasoe and 23 other employees who had also been implicated. [http://news.bbc.co.uk/1/hi/business/915615.stm RECOVERY STRATEGY |
|
|