4
Business policy
Outline of performance in fiscal 2002
Activities within Japan
Overseas activities
Group Companies
P. 4
P. 7
P. 8
P.1 0
P.1 1
Economic Activities
Vision/Mission of MMC
In 2003, MMC has newly created and published our Vision and Mission mentioned below.
These define what kind of enterprise we will be and what our goals are, providing the cornerstones of MMC’s future development.
Under the Vision, MMC promises to carry out our Missions.
- Concept leadership & driving fun
- Japanese craftsmanship, engineering & design
- Environment technologies.”
- Deliver exciting vehicles and heartfelt services to delight our customers based on future trends
- Feature highly profitable business systems with presence in key markets
- Establish a globally distinctive “Mitsubishi Motors” brand
- Achieve highest quality across whole value chain
- Support social & environmental progress by good corporate citizenship

E c o n o m i c A c t i v i t i e s E N V I R O N M E N T A L S U S T A I N A B I L I T Y R E P O R T 2 0 0 3
Establishment of MFTBC
In January 2003, MMC’s truck and bus business was spun off to create the newly independent Mitsubishi Fuso Truck & Bus
Corporation (hereafter referred to as
MFTBC). MFTBC’s shareholders are
DaimlerChrysler (43%), MMC (42%) and the Mitsubishi Group (15%).
As a result, MFTBC will not only enjoy the benefits of economies of scale offered by its partnership with DaimlerChrysler, but also gain access to DaimlerChrysler knowhow and technologies. The main synergies expected to be generated between
MFTBC and DaimlerChrysler are as follows:
- Establishment of a dominant market position in Japan and overseas due to improvements in quality, costs and product strengths
- Dramatic reduction of material costs due to the expansion of global purchasing
- Dramatic reduction of development costs due to joint development of frames and components and shared investment in advanced technologies (including environmental technologies)
- Reduction of costs due to sharing of components
- Global complementarity of sales networks
Progress of Turnaround Plan
MMC is currently on the way of implementation of the Turnaround Plan.
MMC is a strategic alliance partner with
DaimlerChrysler group and the synergy effects by this alliance are expected to help more drastic business turnaround of our company. The Alliance relationship will help to focus our resources on our core business and technology developments that are vital for MMC’s further development.
In FY2002, MMC has achieved our profit target in 2002 as the second year of our
Turnaround Plan. (see P.7)
In management efficiencies, we achieved the following targets in fiscal 2002, which was originally planned for 2003: 15% reduction in material costs; 14% reduction in headcount (9,500 persons); and a greater than 20% streamlining of production capacity.
Now, we are promoting re-construction of sales organization in Japan, such as improvement of customer services and unification of corporate identity or visual identity of dealers
Our business in new market has been launched utilizing DC alliance, in Canada,
Mexico, and other counties.
World Engine
Global Engine Alliance L.L.C, a joint venture formed by MMC, DaimlerChrysler and Hyundai, will produce new engines at
Dundee, Michigan in the United States.
It was established in May 2002 as a joint venture to undertake joint design, development and engineering of a new family of four-cylinder gasoline engines.
The new engines will be produced initially by Hyundai in Asan in South Korea, and next by MMC in Kyoto, Japan, from the latter half of 2004. Production at the U.S.
plant is scheduled to begin in 2005. Total unit output of engines by the three companies is expected to exceed
1,500,000 per year, making it the world’s most widely used engine series.
5

Economic Activities
6
Development of Safe Vehicles
Traffic accidents are a serious problem, causing over one million fatalities and injuries a year. We therefore believe it is an important duty as an automaker to provide safe vehicles to customers.
MMC has consequently introduced what it calls “RISE” (Refined Impact Safety
Evolution) standards on vehicle construction to ensure that vehicles can withstand collisions from any direction, and vehicles are developed conducting a variety of computer simulations of conditions from the designing stage. After production of a prototype, various collision tests are conducted, such as head-on collisions, offset collisions, side collisions, rear-end collisions, and pole collisions, in order to verify the vehicle’s all-round safety.
The results of development work are confirmed using data from the Institute for
Traffic Accident Research and Data
Analysis (ITARDA), and feedback used to make further improvements to the next development model.
MMC/MFTBC promote to improve safety systems and danger avoidance performance of vehicles in order to prevent traffic accidents. For example, using a unique driving simulator for simulating the driving of actual vehicles, development work is conducted to improve vehicle driving performance.
Driving simulator
MMC /MFTBC also make ASV
AHS * 2
* 1 research models in order to and manufacture safe vehicles in the future, and are pursuing R&D into new driver support systems.
Quality Control
Under the Turnaround Plan, particular efforts have been made to drastically overhaul quality.
The first step consisted of the introduction of the new “Quality Gate” development process control system using
DaimlerChrysler know-how. This system consists of a number of “check gates” at each stage from the development planning stage to the production and marketing stages. At each gate strict checks are made, and the next step is not commenced unless all the necessary criteria, including quality standards, have been properly met. This system has been introduced for new and subsequent models launched in 2001.
We are also introducing an automatic system to register information from consumers on defects, in order to improve after-sale quality and eliminate variation and omissions due to human factors in such information. In addition, we are developing a database of information on defects in order to speed up and improve the quality of countermeasures taken.
Computer simulations of collision
Hand-Shape Switch
R * 3
In order to make vehicles that are safe and easy to use, R&D on human factors is in progress. For example, MFTBC is working in association with Keio University to develop a hand-shape image analysis system for operating audio and air-conditioning equipment by means of simple gestures.
This removes the need to hunt for switches while driving, thus reducing gaze movement and contributing to safe driving.
Method of operation
Switch Operation using push switch
Motion principle
CCD camera
Inputted image
Virtual switch
Push
Volume
Temperature
Wind flow
Air conditioner/audio
Crash test
Notes
* 1 : ASV (Advanced Safety Vehicle)
Advanced safety vehicle research project being promoted by the Japanese Ministry of Land, Infrastructure and Transport (MLIT).
* 2 : AHS (Advanced Cruise-Assist Highway Systems)
A cruise assist highway system research project also being pursued by MLIT.
* 3 : Hand-Shape Switch
“Hand-Shape Switch” is a Japanese registered trademark of MFTBC.

E c o n o m i c A c t i v i t i e s E N V I R O N M E N T A L S U S T A I N A B I L I T Y R E P O R T 2 0 0 3
For fiscal 2002, MMC reports consolidated sales of 3,884.9 billion, increases from one of fiscal 2001. MMC also earned an operating profit of 82.8 billion, ordinary income of 54.3 billion and net income of
37.4 billion. These greatly improved figures are the result of far-reaching reforms implemented under the Turnaround
Plan for the purpose of returning the company to sustainable profitability.
Sales income for MFTBC and its group companies is fully consolidated in the statements of income March 2003.
Starting this fiscal year, MMC’s consolidated overseas subsidiaries changed their book closing date from December 31 to March 31 to synchronize with the parent company’s fiscal year. As a result,
MMC’s consolidated financial statements for
FY2002 reflect the last 15 months of figures for its overseas consolidated subsidiaries. This accounting change brings a one-time increase in overall net sales of approximately 433.4 billion, and decreases in operating profit by
10 billion, ordinary income by 13.1 billion and net income by 6.5 billion.
( billion)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
3,613
3,335
3,277
3,201
3,885
0
1998 1999 2000
Sales
(consolidated)
2001 2002
(Fiscal year)
( billion)
100
80
60
40
20
0
-20
- 40
- 60
- 80
-100
▲
4.2
1998
▲
3.7
▲
94
11.9
54.3
1999 2000 2001 2002
(Fiscal year)
Ordinary profit
(consolidated)
( billion)
100
80
60
40
20
0
-20
- 40
- 60
- 80
-100
( billion)
100
80
60
40
20
0
-20
- 40
- 60
- 80
-100
55.9
1998
5.7
1998
22.5
1999 2001 2002
(Fiscal year)
Operating profit
(consolidated)
▲ 23.3
▲
73.9
2000
▲
278.1
40.2
11.3
82.8
37.4
1999 2000
Net income
(consolidated)
2001 2002
(Fiscal year)
7

Economic Activities
Development and Production
(Mizushima Production Dept.)
Sakahogi-cho, Kamo-gun, Gifu
12
14
13
12
14
10
9
14
11
13
1
7
9
13
5
3
6
2
5
5
5
6
10
8
14
8
13
12
11
7
9
2
3
6
4
5
10
1
8

Sales
E c o n o m i c A c t i v i t i e s EN V I R O N M E N T A L S U S T A I N A B I L I T Y R E P O R T 2 0 0 3
(3) Main new models launched in fiscal 2002
Colt Lancer Cargo Canter
9

Economic Activities
Main Overseas Facilities (consolidated subsidiaries only listed)
Main overseas facilities
10
Eclipse Spyder
(made in North America)
Space Star (made in Europe) Canter (made in Europe)

E c o n o m i c A c t i v i t i e s E N V I R O N M E N T A L S U S T A I N A B I L I T Y R E P O R T 2 0 0 3
The MMC group of companies comprises
124 subsidiaries, 25 affiliates and two other associates (as at 31 March 2003).
The MMC group is engaged in the development, production and sales of passenger cars and parts for those cars.
MMC is responsible for most of the development work.
In Japan, Mitsubishi regular and small passenger cars and mini-cars are produced by MMC, with some recreation vehicle models (the Pajero, among others) also being produced by the Pajero
Manufacturing Co., Ltd. These automobiles are sold in Japan by Tokyo Mitsubishi
Motor Sales Co. and other Mitsubishi
Motors sales companies.
Mitsubishi Automotive Engineering Co.,
Ltd. undertakes some of the development of MMC automotive products, Mitsubishi
Automotive Logistics Co., Ltd. undertakes the transport of Mitsubishi auto products in
Japan, and Mitsubishi Automotive Techno-
Service Co., Ltd. is responsible for inspection and servicing of certain new
Mitsubishi vehicles.
Replacement and accessory parts for the
Japanese market are manufactured by
MMC and are sold by the abovementioned sales companies, by Tokyo Mitsubishi
Automotive Parts Sales Co., Ltd. and other parts sales companies.
Overseas, in the United States Mitsubishi vehicles are produced and sold by
Mitsubishi Motors North America, Inc. In
Europe, Mitsubishi vehicles are produced by Netherlands Car B.V. and sold by
Mitsubishi Motors Europe B.V. Mitsubishi
Motors Australia Ltd. and MMC Sittipol
Co., Ltd. (Thailand) are two of the many facilities that produce and sell Mitsubishi vehicles in local markets in other regions around the world.
Auto lease and financing services are provided by Mitsubishi Auto Credit-Lease
Corporation in Japan and by Mitsubishi
Motors Credit of America, Inc. in the United
States.
MMC spun-off its truck and bus operations and formed the Mitsubishi Fuso
Truck and Bus Corporation (MFTBC), a fully-owned subsidiary, on 1 January 2003.
MFTBC became an equity method company of the MMC group on 14 March
2003 when MMC sold 58% of its shareholding.MFTBC and its group companies are mainly engaged in the development, production and sales of trucks and buses.
Production (Japan)
Pajero Manufacturing Co., Ltd.
Mitsubishi Automotive Bus Manufacturing Co., Ltd.
Pabco Co., Ltd.
Mitsubishi Automotive Techno-Metal
Corporation, etc.
Engineering & information systems
Mitsubishi Automotive Engineering Co., Ltd.
MMC Computer Research., Ltd.
MMC System Service Co., Ltd, etc.
Other related companies
DaimlerChrysler AG.
Mitsubishi Heavy Industries, Ltd.
Logistics & other services
Mitsubishi Automotive Logistics Co., Ltd.
Mitsubishi Automotive Techno-Service Co., Ltd, etc.
Overseas production & sales
Mitsubishi Motors North America, Inc.
Mitsubishi Motors Europe B.V.
Netherlands Car B.V.
MMC Sittipol Co., Ltd.
Mitsubishi Motors Australia Ltd, etc.
Sales (Japan)
Tokyo Mitsubishi Motor Sales
Tokyo Mitsubishi Fuso Sales
Tokyo Mitsubishi Auto Parts, etc.
Auto finance
Mitsubishi Auto Credit & Lease Corporation (Japan)
Mitsubishi Motors Credit of America, Inc (U.S.)
: Passenger Cars
: Trucks / Buses
No Mark : Passenger Cars and Trucks / Buses
Finished and semi-finished autos and parts
Services, etc.
11