Mitsubishi Motors Corporation (MMC) announce their three-year mid-term business plan, namely ‘Small but Beautiful’ from 2020 to 2022, in order to focus their management resources on their core regions and technologies, as well as in Africa. This mid-term business plan was announced on Monday the 27th of July 2020 in Japan and aims at their cost rationalization and profitability improvement towards a solid management foundation that focuses on sustainable growth after these three years.
This Mid-term business plan is also based on structural reforms this ‘Small but Beautiful’ plan will focus on reducing their fixed costs by production capacity optimization, a new regional strategy in addition to an improved product/technology strategies. "We will shift our strategy from all-round expansion to selection and concentration," says Takao Kato, Representative Executive Officer and Chief Executive Officer of MMC. "First of all, we will complete our structural reform and further strengthen our competitive areas, ultimately to build a corporate structure that can surely generate profits during this mid-term period."
The main effort of this mid-term business plan is to develop businesses in Africa, Oceana and South America as the second pillar, flowed by a focus on ASEAN management resources, along with strengthening eco-friendly new vehicle models by 2022. "Market conditions are tough for everyone, but Mitsubishi Motors South Africa (MMSA) has a strong foothold with a strong following," says Nic Campbell, General Manager of MMSA. "On local soil, we are running a successful zero deposit campaign on various models, which is extremely popular, and we will continue with offers that are attractive to customers during these conditions."
MMSA announced recently that some new vehicle models will be coming to the region during the next two years, including the Xpander and the Mirage, along with finalizing the list once more details are available. As part of the MMC’s restructured mid-term business plan, Mitsubishi has also confirmed that they would stop the production of the legendary Pajero SUV next year. As for South Africa, the Pajero remains quite a popular vehicle model and will, therefore, continue to be ordered until its production finally halts to an end.
Written by: Ashley Roos