Mitsubishi is today introducing a new three-year strategic plan, targeting sales growth of at least 30 percent to 1.3 million vehicles annually. In order to achieve this ambitious goal, the Japanese manufacturer will invest more than 600 billion yen ($5.32 billion) in research and development over the course of the "Drive for Growth" strategy.
Under the new financial program, Mitsubishi will try to increase revenues by 30 percent to 2.5 trillion yen, as a result of an increase in annual capital expenditure to 137 billion yen ($1.21 billion) in fiscal 2019. This will represent a lift of spending as a proportion of sales to 5.5 percent per year.
A major role in the "Drive for Growth" plan will be played by the SUV and pickup vehicles of the company, where a total of 11 new models will be launched. The product range renewal program will be combined with a market expansion in the ASEAN region, Oceania, United States, China, and Japan.
"Drive for Growth is a new roadmap for Mitsubishi Motors," Osamu Masuko, Mitsubishi Motors chief executive, explains the new strategy. "We will rebuild trust in our company as our highest priority, successfully launch new vehicles, and achieve a V-shaped financial recovery. These will be the foundations for our future sustainable growth, which will involve increased capital expenditure and product development spending."
In addition to the product renewal and market expansion, Mitsubishi will also try to reduce costs by 1.3 percent per year, which will be possible mainly due to growing synergies from its membership of the Renault-Nissan alliance. The automaker will seek synergies totaling more than 100 billion yen ($886 million) over the course of the plan.
"This is an ambitious program to maximize our strengths in growing product segments, especially four-wheel drive, and to pursue growth in markets where our brand has strong potential, particularly the ASEAN region," Masuko says. "This growth program will also involve an efficient and disciplined operating structure as we continue to manage costs."