Mitsubishi Motors has completed consolidation of seven key support groups as part of its integration of four North America subsidiaries into a single entity, Mitsubishi Motors America, Inc. (MMA), based in Cypress, CA.

The consolidation began in June 2000 with formation of the North American Operations Committee, comprising key senior executives from Mitsubishi Motors' U.S. automotive companies who will provide strategic guidance for the newly streamlined organization.

The North American Operations Committee's first priority was to consolidate key support functions in the four subsidiaries: Mitsubishi Motor Sales of America, Inc. (MMSA), Mitsubishi Motor Manufacturing of America, Inc. (MMMA), Mitsubishi Motors R&D of America, Inc. (MRDA) and the current Mitsubishi Motors America, Inc. (MMA).

The committee announced today that the following key support groups have been fully integrated: Corporate Communications, Legal and Government Relations, Procurement, Service/Parts, Information Systems, Corporate Planning and Customs. Areas still under study for consolidation include Human Resources, Treasury and Accounting. The integration of these support functions is not designed to reduce headcount, as operations already have been streamlined in the past few years.

"This integration will improve the consistency, coordination and effectiveness of our operations," said Mr. Hiroshi Yajima, Chairman and Chief Executive Officer of Mitsubishi Motors' U.S. operations. "The progress we've made since our June announcement will enhance our competitiveness in the U.S. and help us create a more market-driven organization. We are confident we will see the results of our efforts in higher sales and increased consumer awareness and satisfaction."

These consolidation steps reinforce the company's commitment to the North American market, including such recent actions as establishing a new, higher sales goal of 400,000 vehicles per year by 2005, and authorizing Project America, an initiative which will result in three new products designed in the U.S. specifically for North American consumers and built at the company's plant in Normal, IL.

Mitsubishi Motors' North American operations include: Mitsubishi Motor Sales of America, Inc. (MMSA), based in Cypress, CA, the sole distributor of Mitsubishi-badged cars and light trucks in the American market through a network of more than 500 dealers in 50 states; Mitsubishi Motor Credit of America (MMCA) a wholly-owned finance subsidiary of MMSA; Mitsubishi Motor Manufacturing of America, Inc. (MMMA), located in Normal, IL, produces the Mitsubishi Galant, Eclipse and Eclipse Spyder, and two models for DaimlerChrysler Corporation; Mitsubishi Motors Research and Development of America, Inc. (MRDA), located in Ann Arbor, MI, and Cypress, CA, is responsible for the design and engineering of Mitsubishi products for the American market; and Mitsubishi Motors America, Inc. (MMA), currently based in Southfield, MI, oversees parts procurement for MMC and coordinates government relations in the United States.