Mitsubishi Motors (MMC) plans to double its operating profit to JPY90bn (US$1.1bn) in the fiscal year ending in March 2014, under its three year business plan starting next April, compared with JPY45bn this year.
The automaker aims to sell 1.37m vehicles globally in the fiscal year ending March 2014, up from 1m vehicles forecast for this fiscal year, as it attempts to boost sales in emerging markets such as China, Dow Jones reported.
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In a statement, MMC detailed its new mid-term business plan, ‘Jump 2013’ for the fiscal years 2011 to 2013 ending 31 March, 2014.
The new plan is intended to reflect changes in the car industry caused by worldwide economic turmoil.
By focusing business resources on increasingly important areas such as fast-growing, emerging markets and on environmental initiatives, and by reforming cost structure, Jump 2013 is aimed at growth and a “leap forward”.
The company said it will be launching eight new electric-powered vehicles by 2015 as part of its efforts to reduce environmental impact, including hybrid vehicles in 2013.
It will focus business resources on globally strategic models such as compact cars and SUVs, for which high demand is expected, especially in emerging markets. Development processes and product ranges will be streamlined by discontinuing region-specific models – the company produces unique SUV and passenger car models in North America, for example.
In emerging markets where demand is growing, MMC plans to expand its model line up by introducing vehicles with high market demand, such as SUVs and a compact, fuel-efficient and affordable global strategic car.
It is looking to increases retail sales in these regions by 280,000 by 2013 while, in mature markets, it is looking to increase sales by 90,000 to achieve a 2013 sales target of 1.37m units, up from a fiscal year 2010 forecast of 1m.
In Thailand, MMC will build a third factory, making it the second-largest export hub after Japan and, in China, the company plans to strengthen production capacity by reinforcing a joint venture with its local partner.
In Russia, MMC will start production of a new SUV while at the same time, global production capacity will be adjusted to target sales volumes.
The carmaker also plans reforms in cost structure via a cost ‘reduction implementation committee’ looking for a JPY90bn (US$1.1bn) decrease in FY2013 material costs over the FY2010 forecast.
Alongside the ongoing business alliance with PSA Peugeot Citroën, MMC has expanded cooperation with Nissan and will also look at other potential partners in individual project areas.
