MMC Unveils Three-Year Business Plan

Mitsubishi Motors Corp.'s latest business plan aims to increase operating profits 35% by shedding non-core operations and focusing on sales growth in emerging markets.

MMC, which posted record earnings for the year ended March 31, says it will reduce from 18 to 13 the number of models it offers by the end of fiscal 2016.

The product overhaul will eliminate two of the company's nine platforms, saving 110 billion yen ($1.1 billion) by April 2017. The program includes new versions of the company's Delica D:5 van, Outlander Sport crossover, Pajero Sport crossover, Pajero SUV and Triton Pickup truck.

The company also intends to bolster its lineup of hybrid and electric vehicles, hiking their share of total MMC sales to 20% by 2020 from 1% today.

MMC is targeting 1.4 million global sales in 2017 from 1.1 million units this year. The company says it hopes to increase volume 36% to 150,000 units in the U.S. and 33% to 160,000 units in Europe by then.

The company plans an initial public offering, which will enable it to buy back preferred shares it issued a decade ago to other Mitsubishi group companies to survive a series of huge recalls in 2004.

Analysts say eliminating those holdings, which total about 34% of the company, will help MMC expand product alliances such as the one it announced earlier this month with Renault-Nissan. Under that partnership, MMC will introduce two Renault-based sedans, a D-segment model for North America and a C-segment car to be marketed globally. The companies also will share electric vehicle technology.