Mitsubishi Motors was formed as a wholly owned subsidiary of Mitsubishi Heavy Industries (MHI) in 1970.

MHI  is one of Japanese industry predators: in the civil field, its business includes shipbuilding, transport, aviation, space launch vehicles, and satellites, etc; In the military field, it also produce aircraft carriers, warships, submarines, military aircraft and missiles. Even the famous “zero war” use in World War II was the company’s products. It is developing the fourth generation fighter “mind now. But MHI is such a big and complex company, there are many operation issues in the company.

Mitsubishi Motors  was supported by a handful of wealthy family .

Before the end of the Second World War, the Mitsubishi zaibatsu was one of the four major zaibatsus in Japan. (zaibatsu means a large Japanese business conglomerate.) And Mitsubishi Motors focuses on manufacturing passenger cars and light commercial trucks in its domestic markets as well as in other Asian countries and North America.

In 2015, the Mitsubishi Group’s turnover of 58 trillion yen. This amount is even more than Japan’s estimated fiscal revenue in 2015, 10 % of Japan’s GDP. However, compared with its parent group, Mitsubishi Motors did not operate so well.

The export amount of Mitsubishi (2016)
Export area Export amount in July Growth percentage/%
Asia 2434 -12
North America 8422 50
Europe 10621 -18
Domestic sales in July(2016)
Sales in July Growth Sales in month1-7 growth
6400 -35% 52000 -17%

Because of the serious decline in local sales and exports, Mitsubishi’s production has also declined. In the first seven months of this year, the global output of Mitsubishi was 635,700, decreasing 12% from the same period of last year. Besides, the domestic output of Japan was 332,500 and the output of overseas factories was 303,000, decreasing 13% and 14% respectly, compared with the same period last year.

The fierce competition in the Japan domestic market and global competition is not the only reason for the bad performance, there are some issues in the operation in Mitsubishi Motors.

Because of the strong background, Mitsubishi Motors always hides behind MHI, Mitsubishi Group, and Mitsubishi Tokyo USJ bank.

It could not only benefit from the great brand impact of MHI but also avoid a lot of serious issues by the money of its parent companies and other supports. In 2000 and 2004, Mitsubishi also had some fraud news, but its parent group and the bank used a lot of ways to make up for those news. This did not change the whole operation in the company, on the contrary, it made the company do even worse in the next few years.

The higher management groups and the board of directors also act for thier own interests, the working environment in the company is so down and full of tense air.

 

Reference

  1. http: fundinguniverse.com/company-histories/mitsubishi-motors-corporation-history/
  2. http: auto.sohu.com/20160913/n468300642.shtml

 

 

 

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