Mitsubishi Motors Corp. – through President Osamu Masuko -- has unveiled a new three-year business plan that entails refocusing its product lineup on utility vehicles and electrified drivetrains while relying heavily on emerging markets. The New Stage 2016 business plan commences with the fiscal year beginning April 1, 2014, and continues through the fiscal year ending March 31, 2017.
The business plan is aimed at increasing the carmaker’s global sales by 29 percent from this year's forecasted figure. Mitsubishi is targeting a 36-percent surge in sales in North America to 150,000 units in the fiscal year ending March 31, 2017.
It is also aiming to boost exports of its Outlander Sport compact crossover from its Normal site in Illinois -- its only assembly plant in North America. The carmaker aims to boost its sales in Europe by a third to 160,000 units by fiscal year ending March 31, 2017, from the expected figure of 120,000 units in the current fiscal year ending March 31, 2014.
Mitsubishi's business plan also targets raising money by selling new shares so it could buy back preferred shares in a bid to normalize its shareholder structure. The move may lead to future capital tie-ups with other manufacturers. Masuko remarked that the carmaker will strengthen its SUV and crossover offerings and expand its footprint in emerging markets.
He added that Mitsubishi will maximize technology and product sharing collaborations with other carmakers. Mitsubishi will spend more for r&d and capital expenditures as well as increase the pace of cost cutting as it bids to boost operating profit by 35 percent to JPY135.0 billion ($1.37 billion) and have an operating profit margin of 5.2 percent in the fiscal year ending March 31, 2017. [source: Mitsubishi]