Mitsubishi has announced the details of its new “Drive for Growth” plan, which will see the struggling automaker hopefully increase sales and revenue by 30 percent within the next three years.
Mitsubishi hopes to sell at least 1.3 million vehicles a year worldwide by by the end of fiscal year 2019. It also wants to achieve an operating profit margin of 6% or more, up from 0.3% in fiscal 2016. To achieve this, Mitsubishi is going to increase annual capital expenditure 60% to 137 billion yen ($1.2 billion) and its R&D expenses by 50% to 133 billion yen.
“Drive for Growth is a new roadmap for Mitsubishi Motors. We will rebuild trust in our company as our highest priority, successfully launch new vehicles, and achieve a V-shaped financial recovery. These will be the foundations for our future sustainable growth, which will involve increased capital expenditure and product development spending.”
Besides the huge investments, Mitsubishi will strengthen its SUV and truck lineup with the launch of 11 models, including the Xpander and Eclipse Cross. Six of the 11 models will be complete redesigns. By the end of the plan, Mitsubishi expects its five best-selling global models consisting of SUV, 4WD, and plug-in hybrid vehicles to account for 70% of total sales volume.
“We are refreshing our product line-up, investing in R&D and targeting core market growth,” added Mr. Masuko. “Drive for Growth will enable us to continue the transformation of the company over the next three years.”