Plan Revision
Mitsubishi! > News > Japan > Mitsubishi Motors > 2004 > Revision of Restructuring Plan
Plan Revised Shortly After Announcement
Details of revised plan is towards bottom.
June 8, 2004. MMC announded new management line today. Yoichiro Okazaki, Shuichi Aoto, Kenichi Horinouchi from Mitsubishi Heavy Industries are in while the Europeans are out. Mitsubishi Corp. got two of its executives in pivotal positions. Kazuyuki Kikuchi will be the executive in charge of North America and Toshifumi Sudo of Europe.
June 11, 2004. Yomiuri reported that MMC will close its Okazaki factory in 2006, a year ahead of plans. Similar action will be taken regarding payroll. The company had original plan of selling 297,000 vehicles during the current fiscal year but seems unlikely to meet that target because of its recurring product defects cover-up scandals.
June 12, 2004. Tokyo. Nikkei reported that the domestic sales target will be dropped to about 220,000 from 297,000 announced just last month. Job cuts and moving of headquarters to Kyoto too are being expedited.
June 16, 2004. According to Jiji Press news agency, a new plan might be announced today with more cash infusion (by 50 billin yen) - Mitsubishi group by 15 and Phoenix Capital by the rest, speed up of workforce cuts and transfer of headquarters to Kyoto by a year, reduce salaries, and revise down its domestic sales target to about 200,000 to 220,000. NHK reported that workers' salaries will be cut by 7% and all other measures will result in additional 67 billion yen savings. MMC seems to be sticking to the original date for return to profitability.
June 15, 2004. Tokyo. Modifications to the restructuring plans were announced by MMC's CEO Yoichiro Okazaki, President Hideyasu Tagaya, and CFO Keiichiro Hashimoto. Some of them are
- Increase bailout investment by 15 billion yen to 465 billion.
- Mitsubishi Heavy Industries, Mitsubishi Corp. and Bank of Tokyo-Mitsubishi issued a statement supporting Mitsubishi Motors.
- Plans to save about 35 billion yen in cost-savings this year.
- Cut regular workers' salaries by 5 percent and management's pay by 25 to 50 percent, saving 14 billion yen this year
- Might do the same for its US operations - ie implement personnel and salary cuts
- Okazaki plant will close earlier than previously planned for
- Reduce number of domestic dealers
- 200 workers in Japan will be offered early retirements
- Will put aside 20 billion yen for payment to DaimlerChrysler
- Is reviewing its joint projects with DaimlerChrysler inclusing the Netherlands Car BV joint venture to make small cars, and the World Engine project with Hyundai Motor Co.
- Two new models including a new version of Colt will be introduced.
Tokyo, June 22, 2004 — Mitsubishi Motors Corporation (MMC) today announced plans to revise its organization. The revisions, which come into effect on June 29, will see the company's organization slim down from 230 departments to 131, speeding up the decision-making process and clarifying responsibilities. It also announced personnel changes effective June 29. Yoichiro Okazaki will remain the chairman and CEO, while Koji Furukawa of Mitsubishi Corp will become the vice-chaiman and will take over Chief Business Ethics Officer's position from Okazaki. Moreover, the position of Corporate General Manager of CSR Promotion Office goes to Furukawa.
Some of the older stories in reverse chronological order (Newer ones first)
New Restructuring Plan DetailsPre-announcement Leaks of Restructuring
Kabushiki Ombudsman Group Plans to Sue Mitsubishi Heavy Industries
Rumors of MMC's Rescue Plan
Investment Amount, Models Slashed