Mitsubishi Motors aims for ¥100 billion operating profit in Southeast Asia

Mitsubishi Motors CEO Kato speaks during an interview with The Yomiuri Shimbun

TOKYO, Aug 12 (The Japan News/ANN) - Mitsubishi Motors Corp. hopes to increase its operating profit in its main market of Southeast Asia to a record ¥100 billion per year after fiscal 2025, CEO and Representative Executive Officer Takao Kato said in an interview with The Yomiuri Shimbun.

Mitsubishi Motors is also mainly in charge of the Southeast Asian market in joint venture with Renault S.A. of France and Nissan Motor Co., Ltd. Next January, it will start production of a plug-in hybrid vehicle in Thailand and will also consider production in Myanmar.

In fiscal 2019, Mitsubishi Motors’ operations in Southeast Asia had an operating profit of about ¥64 billion. In Japan, the United States and Europe, however, sales were sluggish, leaving the company with its first net loss in three years. “The omnidirectional expansion strategy was unreasonable,” Kato said.

The company will reduce fixed costs by 20% over the next two years. In Japan, the company has decided to close a plant in Gifu Prefecture that produces the SUV model Pajero. Regarding two other plants that produce finished vehicles, “production line restructuring is possible,” he said.