[Company analysis] Mitsubishi Motors Corporation (三菱自動車工業)

「Mitsubishi Motors Corporation (三菱自動車工業)」is an automobile manufacturer that produces a variety of vehicle models, from light to large vehicles. this company is actually a company separated from "Mitsubishi" and has a capital relationship with the "Mitsubishi Group". But at the same time, it belongs to「Renault-Nissan-Mitsubishi Alliance(ルノー・日産・三菱アライアンス)」. However, the company's image and sales got critical damage due to the recall incident caused by their moral hazard of the top management. The number of consolidated employees is approximately 31,314.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Mitsubishi Motors Corporation
Company name (Japanese)	三菱自動車工業
Date of establishment	Wednesday, April 22, 1970
Headquarters location	〒108-8410 東京都港区芝浦三丁目1番21号
Capital	284,382
Consolidated sales	2,514,594
Consolidated operating profit	111,815
Consolidated total assets	2,010,309
Consolidated capital	881,203
Capital adequacy ratio	43.8%
Consolidated number of employees	31,314

 

 

 

2. Summary and Features

 
Originally「Mitsubishi Heavy Industries, Ltd.(三菱自動車工業)」was the automobile division of「Mitsubishi Heavy Industries, Ltd.(三菱重工業)」. By the joint venture between「Mitsubishi Heavy Industries」and「Cryslaser」, this company established in 1970. Compared with other automobile manufacturers such as「Toyota Motor Corporation」 and「Hino Motors」, this company is relatively second mover. However, they have the title of producing Japan's first mass-produced car, because of its mother company of「Mitsubishi Heavy Industries」.

The capital alliance with「Cryslaser」lasted until 2005 and the technical alliance lasted until 2009. The relationship with「Cryslaser」was broken because of the large-scale recall incident of「Mitsubishi Motors Corporation」. In the early 2000s, this company shipped out 1.2 million of vehicles with serious defects, and tried to conceal it. When this was discovered, the sales volume of 250,000 units in 2002 dropped to 70,000 units in 2017. Of course, their brand image was critically damaged.

As a result of this incident,「Daimler Chrysler」, the largest shareholder at the time, suspended the capital tie-up, and「Mitsubishi Motors」confronted with a serious financial slump. But it was rescued by the investment from Mitsubishi Group, even though the sales situation was not recovered at all. In October 2016,「Nissan Motor Co., Ltd.(日産自動車)」 purchased 34% of its stock share, and now they became a member of「Renault-Nissan-Mitsubishi Alliance」.

「Mitsubishi Motors」has been focusing on the mass production of electric vehicles than hybrid vehicles. In July 2009, they launched the "i-MiEV", the world's first mass-produced EV. In this way, they are one of the companies who have the most advanced technology in EV industry. In addition, they could use the sales network from Mitsubishi Group, in order to cultivate the Southeast Asian market. this is considered to be a clear advantage in Southeast Asian market.

Besides,「Mitsubishi Motors」has a relationship with「Hyundai Motors」in South Korea, which has the sixth largest market share in the global personal automobile market. In fact,「Mitsubishi Motors」provided engine technology and mechanism-related technology to「Hyundai Motors」 from the time of its founding until the early 2000s. 

 

 

 

3. Major Business

 

■ Automobile business
They produce and sell general / light vehicles.

■ Engineering
They carry out domestic transportation of Mitsubishi vehicles and check and maintain new vehicles.

■ Financial business
By making「MMC Diamond Finance Co., Ltd.」 a subsidiary in 2018, they are conducting sales financing and automobile leasing business.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,906,632	2,192,389	2,514,594
Consolidated operating profit		5,118	98,201	111,815
Consolidated total assets		1,484,413	1,655,299	2,010,309
Consolidated net assets		703,463	796,562	881,203
Breakdown of sales	Japan	297,313	349,406	1,211,792
	America	297,139	352,529	365,004
	Europe	433,482	454,808	225,744
	Asia	433,536	591,662	479,491
	Oceania	202,591	240,961	221,617
	Others	242,568	203,020	10,945