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is the sixth largest '' Keiretsu '', formerly the biggest industrial group in Japan, and was formed in 1970 from the automotive division of Mitsubishi Heavy Industries . History of Mitsubishi , Funding Universe (subscription required) Throughout its history it has courted alliances with foreign partners, a strategy pioneered by their first president Tomio Kubo to encourage expansion, and continued by his successors. A significant stake was sold to Chrysler Corporation in 1971 which it held for 22 years, while DaimlerChrysler was a controlling shareholder between 2000 and 2005. Long term joint manufacturing and technology licencing deals with the Hyundai Motor Company in South Korea and Proton in Malaysia were also forged, while in Europe the company co-owned the largest automobile manufacturing plant in the Netherlands with Volvo for ten years in the 1990s, before taking sole ownership in 2001. Mitsubishi Motors Corporation Vehicle Manufacturer Strategic Insight , Automotive World (subscription required) Thanks to these alliances it benefitted strongly in the 1970s and '80s, increasing its annual production from 250,000 to over 1.5 million units. But its strong presence in south-east Asia meant it suffered more than most of its competitors in the aftermath of the 1997 East Asian Financial Crisis , and since then the company has struggled to consistently increase sales and maintain profitability. The logo of three red diamonds, shared with over forty other companies within the ''keiretsu'', predates Mitsubishi Motors itself by almost a century. It was chosen by Yataro Iwasaki , the founder of Mitsubishi , as it was suggestive of the emblem of the Tosa Clan who first employed him, and because his own family crest was three rhombuses stacked atop each other. The name Mitsubishi is a Portmanteau of ''mitsu'' ("three") and ''hishi'' (literally, "water chestnut", often used in Japanese to denote a diamond or rhombus). "The Mitsubishi Mark" , Mitsubishi.com HISTORY automobiles.]] Mitsubishi's automotive origins date back as far as 1917, when the Mitsubishi Shipbuilding Co., Ltd. introduced the 2001 In 1934, Mitsubishi Shipbuilding was merged with the Mitsubishi Aircraft Co., a company established in 1920 to manufacture aircraft engines. The unified company was known as , Ship s, Railroad Car s and machinery, but in 1937 developed the PX33 , a prototype sedan for military use. It was the first Japanese-built passenger car with full-time Four-wheel Drive , a technology the company would return to almost fifty years later in its quest for motorsport and sales success. "History of Mitsubishi, 1870-1939 , Mitsubishi Motors website on display at the Mondial De L'Automobile in September 2006.]] Immediately following the end of the Second World War , the company returned to manufacturing vehicles. Fuso bus production resumed, while a small Three-wheeled cargo vehicle called the Mizushima and a Scooter called the Silver Pigeon were also developed. However, the '' Zaibatsu '' (Japan's family-controlled industrial conglomerates) were ordered to be dismantled by the Allied Powers in 1950, and Mitsubishi Heavy Industries was split into three regional companies, each with an involvement in motor vehicle development: West Japan Heavy-Industries, Central Japan Heavy-Industries, and East Japan Heavy-Industries. East Japan Heavy-Industries began importing the Henry J , an inexpensive American sedan built by Kaiser Motors , in Knockdown Kit (CKD) form in 1951, and continued to bring them to Japan for the remainder of the car's three year production run. The same year, Central Japan Heavy-Industries concluded a similar contract with Willys (now owned by Kaiser) for CKD-assembled Jeep CJ-3B s. This deal proved more durable, with licensed Mitsubishi Jeeps in production until 1998, thirty years after Willys themselves had replaced the model. By the beginning of the 1960s Japan's economy was gearing up; wages were rising and the idea of family motoring was taking off. Central Japan Heavy-Industries, now known as Shin Mitsubishi Heavy-Industries, had already re-established an automotive department in its headquarters in 1953. Now it was ready to introduce the Mitsubishi 500 , a mass market Sedan , to meet the new demand from consumers. It followed this in 1962 with the Minica '' Kei Car '' and the ''Colt 1000'', the first of its Colt line of family cars, in 1963. West Japan Heavy-Industries (now renamed Mitsubishi Shipbuilding & Engineering) and East Japan Heavy-Industries (now Mitsubishi Nihon Heavy-Industries) had also expanded their automotive departments in the 1950s, and the three were re-integrated as Mitsubishi Heavy Industries in 1964. Within three years its output was over 75,000 vehicles annually. Following the successful introduction of the first Galant in 1969 and similar growth with its commercial vehicle division, it was decided that the company should create a single operation to focus on the automotive industry. Mitsubishi Motors Corporation (MMC) was formed on April 22 1970 as a wholly owned subsidiary of MHI under the leadership of Tomio Kubo, a successful engineer from the aircraft division. CHRYSLER CONNECTION 1970s Part of Kubo's expansion strategy was to increase exports by forging alliances with well-established foreign companies. Therefore, in 1971 MHI sold U.S. automotive giant Chrysler a 15 percent share in the new company. Thanks to this deal, Chrysler began selling rebadged Galants in the United States as Dodge Colt s, pushing MMC's annual production beyond 250,000 vehicles. , the basis for the company's first Captive Import deal with Chrysler.]] By 1977, a network of "Colt"-branded distribution and sales dealerships had been established across Europe , as Mitsubishi sought to begin selling vehicles directly. Annual production had by now grown from 500,000 vehicles in 1973 to 965,000 in 1978. However, this expansion was beginning to cause friction; Chrysler saw their overseas markets for Subcompacts as being directly encroached by their Japanese partners, while MMC felt the Americans were demanding too much say in their corporate decisions. 1980s & MMAL Mitsubishi finally achieved annual production of one million cars in 1980, but by this time its ally was not so healthy; As part of its battle to avoid Bankruptcy , Chrysler was forced to sell its Australia n manufacturing division to MMC that year. The new Japanese owners renamed it Mitsubishi Motors Australia Ltd (MMAL), and since then it has stood as one of the largest car production facilities in the country. In 1982, the Mitsubishi brand was introduced to the American market for the first time. The Tredia Sedan , and the Cordia and Starion Coupé s, were initially sold through 70 dealers in 22 states, with an allocation of 30,000 vehicles between them. This quota, restricted by mutual agreement between the two countries' governments, had to be included among the 120,000 cars earmarked for Chrysler. Toward the end of the 1980s, as MMC initiated a major push to increase its U.S. presence, it aired its first national television advertising campaign, and made plans to increase its dealer network to 340 dealers. By 1989, Mitsubishi's worldwide production, including its overseas affiliates, had reached 1.5 million units. Diamond-Star Motors :''Main article: Diamond-Star Motors Despite the ongoing tensions between Chrysler and Mitsubishi, they agreed to unite in a vehicle manufacturing operation in , Eagle Talon and Plymouth Laser , with other models being introduced in subsequent years. 1988 IPO , the company's most successful SUV .]] Mitsubishi Motors went public in 1988, ending its status as the only one of Japan's eleven auto manufacturers to be privately held. Mitsubishi Heavy Industries agreed to reduce its share to 25 percent, retaining its position as largest single stockholder. Chrysler, meanwhile, increased its holding to over 20 percent. The capital raised by this initial offering enabled Mitsubishi to pay off part of its debts, as well as to expand its investments throughout south-east Asia where it was by now operating in the Philippines , Malaysia , and Thailand . 1990s Hirokazu Nakamura became president of Mitsubishi in 1989 and steered the company in some promising directions. Sales of the company's new Pajero were bucking conventional wisdom by becoming popular even in the crowded streets of Japan. Although sales of SUV s and light trucks were booming in the U.S., Japan's car manufacturers dismissed the idea that such a trend could occur in their own country. Nakamura, however, increased the budget for sport utility product development, and his gamble paid off; Mitsubishi's wide line of Four-wheel Drive vehicles, from the Mitsubishi Pajero Mini '' Kei Car '' to the Delica Space Gear passenger van, rode the wave of SUV-buying in Japan in the early to mid-1990s, and Mitsubishi saw its overall domestic share rise to 11.6 percent in 1995. Independence In 1991, Chrysler sold its equity stake in Diamond Star Motors to its partner, and from then on they continued to share components and manufacturing on a contractual basis only. Chrysler decreased its interest in Mitsubishi Motors to less than 3 percent in 1992, and announced its decision to divest itself of all its remaining shares on the open market in 1993. The two companies nevertheless continued their close alliance, with Chrysler supplying engines and transmissions for DSM, and Mitsubishi marketing Chrysler products overseas. DSM was officially renamed Mitsubishi Motor Manufacturing of America on July 1 1995 . OTHER ALLIANCES Hyundai Hyundai of South Korea , now one of the most successful Tiger Economy auto-makers, built the Hyundai Pony in 1975 using MMC's Saturn Engine and transmissions. Korea's first car, it remained in production for thirteen years. Mitsubishi held up to a 10 percent stake in the company, until disposing of the last of its remaining shares in March 2003. "Mitsubishi to sell stake in Hyundai" , Andrea Wielgat, ''Automotive Industries'', November 2002 Proton 2005 Volvo Mitsubishi participated in a joint venture with rival car-maker Volvo and the Dutch government at the former DAF plant in Born in 1991. The operation, branded NedCar , began producing the first generation Mitsubishi Carisma alongside the Volvo S40/V40 in 1996. The Dutch government sold out to its partners in 1999 and Volvo, by now owned by Ford , sold its stake to Mitsubishi in early 2001 to leave the Japanese company as the only remaining shareholder. The factory currently produces the latest 2006 Colt & Lonsdale The Colt name appears frequently in Mitsubishi's history since its introduction as a rear-engined 600cc Sedan in the early 1960s. Today, it most commonly refers to the Mitsubishi Colt subcompact in the company's line-up, but is also the name of MMC's import/distribution company in the United Kingdom, the Colt Car Company , 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 Australian-built Chrysler Sigma to the UK as the Lonsdale Sigma in an attempt to circumvent British import quotas, but the new brand was unsuccessful. It then carried Mitsubishi Sigma badges in 1983–84 before abandoning this operation entirely. RECENT TROUBLES Asian economic downturn The benefits Mitsubishi had seen because of its strong presence in south-east Asia reversed themselves as a result of the 1998 In November 1997, Mitsubishi hired Katsuhiko Kawasoe to replace Takemune Kimura as company president. Kawasoe unveiled an aggressive restructuring program that aimed to cut costs by ¥350 billion in three years, reduce personnel by 1,400, and return the company to profitability by 1998. But while the program had some initial success, the company's sales were still stagnant as the Asian economy continued to sputter. In 1999, Mitsubishi was forced once again to skip dividend payments. Its interest-bearing debt totalled ¥1.7 trillion. Vehicle defect cover-up In what was referred to as "one of the largest corporate scandals in Japanese history", "Mitsubishi's corporate woes tarnish image" , Richard Russell, ''Canadian Car & Driver'', 2006 0–0–0 In an effort to boost sales in the U.S. at the start of the decade, Mitsubishi began offering a "0–0–0" finance offer – 0 percent down, 0 percent interest, and $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$454 million provision against its 2003 accounts as a result of these losses. "Mitsubishi Motors Announces First-Half FY 2003 Results, Gives Forecast for Full-Year FY 2003" Mitsubishi Motors press release, November 11 2003 Australian production In October 2005, 2006 It is still unknown whether this will be sufficient to restore the plant to profitability and ensure its long term survival. DAIMLERCHRYSLER See Also: DaimlerChrysler-Mitsubishi alliance Two years after the merger of 2005 New major stockholder Phoenix Capital followed suit the following month, selling all but 50 million of its 575 million shares to JPMorgan on December 9 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'', returning MMC to Japanese ownership. REVITALIZATION PLAN at the Tokyo Motor Show in 2005.]] After a starvation of new investment caused by lack of cashflow, the company introduced the award-winning 2006 Slow selling vehicles were eliminated from the U.S. market, purchase projections for the 2006 Mitsubishi has also been active in OEM production of cars for Nissan , and announced a similar partnership with PSA Peugeot Citroën in July 2005 to manufacture an SUV on their behalf. Mitsubishi reported its first profitable quarter in four years in the third quarter of 2006, "Mitsubishi Motors posts first profit in 4 years" , Naoko Fujimura and Tetsuya Komatsu, '' 2005 MOTORSPORT Mitsubishi has almost half a century of international motorsport experience, predating even the incorporation of MMC. Beginning with street races in the early 1960s, the company found itself gravitating towards the challenge of off-road racing. It dominated endurance rallies in the 1970s, the Dakar Rally from the '80s, and the Group A and Group N classes of the World Rally Championship through the '90s. Circuit racing Mitsubishi's motorsport debut was in , their first front-engined competition vehicle. "1964 to 1965" , History of Motor Sports, Mitsubishi Motors Web Museum The company began concentrating on the Japanese GP's emerging open-wheel "formula car" categories from 1966, winning the "Exhibition" class. They also scored class 1–2 in 1967 and 1968, and reached the podium in 1969 and 1970. "1910–1960s" , History of Motor Sports, Mitsubishi Motors Web Museum They finished on a high with an overall 1–2 in the 1971 Japan GP, with the two litre DOHC F2000 driven by Kuniomi Nagamatsu. "Colt F2000" , History of Motor Sports, Mitsubishi Motors Web Museum Off-road racing The East African Safari Rally was by far the most gruelling event on the World Rally Championship calendar in the 1970s. MMC developed the Lancer 1600 GSR specifically for the marathon race, and won at the first attempt in 1974. Their highpoint was a clean sweep of the podium places in 1976 in an event where only 20 percent of the starters typically reached the finish. They also achieved a 1–2–3–4 in the 1973 Southern Cross Rally, the first of four consecutive victories in this event with drivers Andrew Cowan and Kenjiro Shinozuka . "1973 to 1977" , History of Motor Sports, Mitsubishi Motors Web Museum During the 1980s Mitsubishi continued to participate in the WRC, first with the titles with four different drivers from 1995–2001. Even in 2002 when it ostensibly lost the title, the class-winning manufacturer was Proton using a Lancer Evo-based Pert. FIA Cup for Drivers of Production Cars , Rallybase.nl website Mitsubishi is also the most successful manufacturer in the history of the Dakar Rally , one of the most challenging and dangerous motorsport events in the world. MMC's maiden entry was in 1983 with their new Pajero , and it took only three attempts to find a winning formula. Since then, they have won in 1992, '93, '97, '98, and '01–'07, an unprecedented seven consecutive victories and twelfth overall with nine different drivers.1 JACKIE CHAN Mitsubishi has a 30 year long association with movie star 2003 CONTROLLING SHAREHOLDERS
LOCATIONS The company has eight vehicle manufacturing facilities in six countries, 2006 It also has three further engine and transmission manufacturing plants, three R&D centres and 136 subsidiaries, affiliates and partners. Its vehicles are manufactured, assembled or sold in more than 170 countries worldwide. Research, design & administration ''Japan''
''Worldwide''
Production facilities ''Japan''
''Worldwide''
SEE ALSO FOOTNOTES References
Citations EXTERNAL LINKS ''Official sites''
''Regional sites''
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