Mitsubishi Targets Higher Sales, Revenue

Mitsubishi Motors unveiled a three-year plan to boost global vehicle sales by 40% and revenue by more than 30% as it rebounds from a fuel economy scandal by strengthening its utility vehicle lineup and targeting rapid growth in the US, China and Southeast Asia.

CEO Osamu Masuko wants to expand worldwide volume 40% to 1.3 million vehicles by the fiscal year ending March 31, 2020, from 926,000 vehicles in the year ended March 31, Automotive News reported.

Masuko also targets a 31% revenue increase to 2.5 trillion yen ($22.28 billion), up from 1.91 trillion yen ($17.02 billion) in the fiscal year that just ended, the Japanese automaker said in a news release Wednesday.

Mitsubishi plans to increase capital expenditures and R&D investment to help reach the goal.

Mitsubishi will boost annual capital outlays 60% to 137 billion yen ($1.22 billion) by April 2020. Meanwhile, spending on R&D will increase 50% over that period to 133 billion yen ($1.19 billion), the company said.

Mitsubishi will also freshen its lineup with 11 model launches over the next three years, including the Eclipse Cross compact crossover heading to the US and Europe.

“This is an ambitious program to maximize our strengths in growing product segments, especially four-wheel drive, and to pursue growth in markets where our brand has strong potential,” Masuko said, adding that Southeast Asia was the market with the biggest potential.

Dubbed Drive for Growth, the business plan is the first introduced by Mitsubishi since rival Nissan took a controlling 34% stake in the smaller carmaker last year.

Mitsubishi admitted last year to cheating on fuel-economy ratings for several nameplates sold in Japan. The scandal torpedoed sales at home and opened the door for Nissan’s move.

Since then, Mitsubishi has been trying to regroup by promoting joint savings and common development strategies with Nissan and its French partner Renault, the third member of a global auto alliance overseen by Carlos Ghosn, who also serves as chairman of Mitsubishi.