Can a new team of managers turn scandal-ridden Mitsubishi Motors Corp. around? After a lethal combination of cover-ups in Japan and a lending spree in North America almost sank the company, there still are no clear answers.
Osamu Masuko, the sixth president and CEO of the automotive arm since 2000, is upbeat during a Ward's interview in Tokyo
“First-half results for fiscal-year 2005 (ending March 31) topped our forecasts and show a solid start to achieving our goals,” he says, noting “sales volumes and revenues exceeded forecasts, while losses were smaller.”
Nevertheless, first-half results show an operating loss of ¥19.8 billion ($165 million), a net loss of ¥63.8 billion ($531 million) and only a 2% increase in global sales to 659,000 vehicles.
Masuko says overseas business is key. But North America, where volume declined 12% to 81,000 units in the fiscal period, left a gaping hole in the plan.
“We are strongly aware that recovery in North America is critical, but we don't want to become involved in discounting or incentive competition.”
MMC's Normal, IL, plant currently is running on one shift, representing only 41% of the 220,000-unit annual capacity with two shifts.
