MITSUBISHIMOTORSCORPORATIONUlrichWalker,ExecutiveVicePresidentCarProductOperationsDecember6th2002-2-QualityQualityLowProductProfitabilityLowProductProfitabilityUnattractiveValuePropositionUnattractiveValuePropositionLossofConsumers’TrustLossofConsumers’TrustRecallandServiceCampaignsinceFY2000inJapanRecallandServiceCampaignsinceFY2000inJapan15platformsworldwide,severalwithlessthan60kunitsperplatform15platformsworldwide,severalwithlessthan60kunitsperplatformProductpolicyunclear:Designvariety,functionalityfocusProductpolicyunclear:Designvariety,functionalityfocusLowesteverpositiononbrandacceptanceinJapanLowesteverpositiononbrandacceptanceinJapanStrategicChallengesatDay1:January2001StartingPointIssues-3-EnhanceScaleEconomiesEnhanceScaleEconomiesØDiscontinuelowvolumemodels/unprofitableplatformsØConsolidateplatformswithinMMCØShareplatformwithintheallianceØDiscontinuelowvolumemodels/unprofitableplatformsØConsolidateplatformswithinMMCØShareplatformwithintheallianceOptimizeQualityOptimizeQualityØIntroduceQualityGateSystemacrossthevaluechainØIntegratefullProductOperationsØIntroduceQualityGateSystemacrossthevaluechainØIntegratefullProductOperationsØCreatecustomers’focusedproductsØRepositionMMC’sbrandØIntroduceaNewDesignIdentityconsistentwithNewMMCØMaximizefunctionalvalueofMMC’sproductsØCreatecustomers’focusedproductsØRepositionMMC’sbrandØIntroduceaNewDesignIdentityconsistentwithNewMMCØMaximizefunctionalvalueofMMC’sproductsCreateanAttractiveValuePropositionCreateanAttractiveValuePropositionProductStrategicStrategicInitiativesØLeverageresourcesØLeverageresourcesAllianceAlliance-4-GlobalProductionSeniorVicePresident(SVP)M.TaniGlobalProductionSeniorVicePresident(SVP)M.TaniCarR&DSeniorExecutiveOfficer(SEO)A.KijimaCarR&DSeniorExecutiveOfficer(SEO)A.KijimaGlobalProcurement&SupplySeniorExecutiveOfficer(SEO)S.BuchnerGlobalProcurement&SupplySeniorExecutiveOfficer(SEO)S.BuchnerCarProductDesignExecutiveOfficer(EO)O.BoulayCarProductDesignExecutiveOfficer(EO)O.BoulayProductPlanning&ProgramManagementSeniorExecutiveOfficer(SEO)K.U.SeidenfussProductPlanning&ProgramManagementSeniorExecutiveOfficer(SEO)K.U.SeidenfussCarProductOperationsExecutiveVicePresident(EVP)UlrichWalkerCarProductOperationsExecutiveVicePresident(EVP)UlrichWalkerNewProductProjectSPLNewProductProjectSPLKume(B-segEurope)Nakao(Colt)Takahashi(C-seg.)Wenners(D-seg)Tsuyumine(GrandisSucc.)Uesugi(Pick-up)CarProductOperationsTeam-5-ConcurrentEngineeringinProductCreationProcessProductPlanningProductPlanningStylingStylingDevelopment(Designing,Testing)Development(Designing,Testing)ProductionProductionModelFixSalesLaunchEEDDCCBBAAFFPurchasingPurchasingQualityGateProductCreationProcessProductCreationProcess-6-SPLSPLNewProductProjectPMPMPMPMPMPMPMPMPMPMPMPMPMPMDevelopmentMarketingManufacturingControllingQualityProcurementStylingStylingStylingProcurementLogisticsProcurementLogisticsDevelopmentDevelopmentProductPlanningProductPlanningManufacturingManufacturingControllingControllingLineFunctionsQualityQualityLineFunctionsNewProductsDevelopmentTeam(CrossFunctional)SPL:StrategicProjectLeaderPM:ProjectManager-7-CarProductPlanning&ProgramManagementOfficeCarProductPlanning&ProgramManagementOfficeKai-UweSeidenfuss,SEO-8-BrandManagementBrandManagementØPositionMitsubishibrandforgrowthØBalanceglobalrecognitionandregionalconsumerappealØMaintainconsistencyintheAllianceØPositionMitsubishibrandforgrowthØBalanceglobalrecognitionandregionalconsumerappealØMaintainconsistencyintheAllianceVolumeGrowth/ProductPortfolioVolumeGrowth/ProductPortfolioØOptimizesegmentmixbasedonmarketneedsØPrioritizeandbalancemodellineupstructureØMaximizeproductevents:newpipelineandlifecyclemanagementØOptimizesegmentmixbasedonmarketneedsØPrioritizeandbalancemodellineupstructureØMaximizeproductevents:newpipelineandlifecyclemanagementAlliancePotentialAlliancePotentialØManagepartnershipinmarketing/planningresourcesØLeverageplatformsacrossMMCintoAllianceØPursuecomponentsharingopportunitiesØManagepartnershipinmarketing/planningresourcesØLeverageplatformsacrossMMCintoAllianceØPursuecomponentsharingopportunitiesØReducenumberofplatformsØImproveoverallvolumeperplatformØIncreasenumberofderivativesperplatformØReducenumberofplatformsØImproveoverallvolumeperplatformØIncreasenumberofderivativesperplatformPlatform/ModelLeveragePlatform/ModelLeverageStrategicInitiativesProductPlanningOverviewQualityQualityØClearlydefinedproductplanningprocessacrossmarketsØActivelymanagequalitygatesduringproductcreationprocessØQualityGatedrivenlifecyclemanagementØClearlydefinedproductplanningprocessacrossmarketsØActivelymanagequalitygatesduringproductcreationprocessØQualityGatedrivenlifecyclemanagement-10-GoodqualityIntelligentRefinedRationalPrestigiousSenseofsecurityComfortableHighlevelofsafetyEnvironment-friendlyEasytodriveConventionalSimpleOftenseenontheroadPracticalForfamiliesGooddesignHasasenseofpresenceReflectsthemaker’sidentityGoodtasteSexyRobustTenseInnovativeIncorporatesuniquetechnologySuperiordrivingperformanceDurableFormenPlayfulDistinctivecharacte