Mitsubishi Motors Corporation has made electric vehicles and plug-in hybrids a central pillar of the company’s mid-term business plan titled “New Stage 2016”.
Mitsubishi Motors has adopted environmental responsibility, driving pleasure, and toughness & safety as the three pillars of the technology development in “@earth TECHNOLOGY,” and will continue developing next-generation technologies based on those concepts.
Electric vehicle technology is considered to fill an important role in complying with environmental regulations which are being strengthened globally, and Mitsubishi aims to increase its production ratio of EV and PHEV vehicles to 20% in 2020 as a leading company in electric vehicle technology.
At the same time, Mitsubishi Motors, in addition to the development of next-generation engines that achieve both driving performance and environmental performance, will further evolve company’s unique technology, the S-AWC four-wheel integrated vehicle dynamics control system and a group of active safety technologies that are used in the Outlander, called “e-Assist”, while expanding the range of models in which those technologies are utilised.
Mitsubishi will aggressively pursue the integration of information technology in vehicles by adopting “connected car” technology by which vehicles are connected to the Internet using smartphones.
In addition, Mitsubishi is currently working on the development of the next-generation RVR (ASX or Outlander Sport in some markets), Delica D:5, and Pajero (Montero or Shogun in some markets), and technology development for the expansion of plug-in hybrid EV models, and plans to achieve revenue growth by successively introducing those strategic products and technologies into the market starting from fiscal 2015.
On Tuesday, Mitsubishi announced a new industrial partnership with Renault-Nissan Alliance. Under the tie-up, the three companies will share factories and technology and increase sales in North America and emerging markets, partly through the joint development of electric vehicles.
Mitsubishi Motors said it targets sales of 1.43 million vehicles on a group basis in the fiscal 2016, about 30% higher than its goal for the current business year.
The company said it aims to boost operating profit to a record 135 billion yen ($1.37 billion) by the year to March 2017, from its target of 100 billion yen this financial year. On a net basis it has already targeted a record 70 billion yen profit this year.
Mitsubishi aims to cut 110 billion yen in costs in the fiscal year ending March 2017 compared with the current business year.
Mitsubishi Motors also said it will issue up to 210 billion yen of new shares to buy back preferred shares from Mitsubishi group companies such as Mitsubishi Heavy Industries Ltd. That should pave the way to resume dividend payments, which the company hasn’t distributed since an interim payout in the year ended March 1998.
