Mitsubishi sees its future in electric vehicles, which it has been developing since 1966. The company develops plug-in hybrids and other electric vehicles through its research and development facilities and through joint ventures with other auto makers. In 2014 it announced a partnership with Nissan and other car makers to develop and manufacture new electric minicars and promote a charging network.

Mitsubishi already has an electric minicar, the i-MiEV, on the market in Japan and Europe. (Minicars are a popular vehicle class in the Japanese and European markets and are gaining popularity in other parts of the world.) While it sells in Japan under its own brand, the MiEV is sold in Europe through an agreement with French car maker Peugeot S.A., which buys and resells MiEV under a different brand.

Geographic Reach

Mitsubishi's largest market is Europe, representing 24% of net sales. Other major markets include Japan (20%), Asia (19%), North America (13%), Oceania (10%), and other countries (14%). The company operates through seven facilities in four countries; six car manufacturing facilities in four countries; 12 car manufacturing facilities of affiliated companies and business partners in 11 countries and regions; and eight engine, transmission, and parts manufacturing facilities in five countries.

Financial Performance

In 2015 Mitsubishi's net sales increased by 4% in 2015 compared to 2014. The growth was driven by increased sales from both its automobile and automobile financing businesses. Stronger North American sales were driven by brisk sales of the Outlander Sport and Mirage as an economic recovery within the US grew stronger.

Mitsubishi's net income also climbed 13% from 2014 to 2015 due to increased sales, decreased advertising and promotion expenses, an absence of a share issuance cost, and gains on a revision of its retirement benefit plan.

Strategy

As it has in years past, the company also continues to turn to emerging markets to increase its sales and boost profits. It has been targeting its products to customers in emerging markets like China, Russia, the Ukraine, and other countries in Asia and Eastern Europe. Other sales-boosting initiatives featured a new plant being launched in the Philippines in January 2015. The new plant is continuing with the production of the Adventure and L300 models and produces up to 50,000 units per year, exceeding the production capacity at a previous plant.

The company was hit by a major scandal in 2016 after it was revealed that it had cheated on fuel economy tests for several years.

In 2014 Mitsubishi acquired Asian Transmission Corporation (ATC) from Mitsubishi Motors Philippines Corporation (MMPC) and Sojitz Corporation (Sojitz) A production base for components, ATC supplies transmissions and engines for automobiles, and the deal will reinforce Mitsubishi 's production base in the ASEAN countries, where the automobile market is expected to experience sustainable growth.

Company Background

Mitsubishi Motors Corporation was created in 1970 when Mitsubishi Heavy Industries spun off its motor vehicle division. Mitsubishi Heavy Industries was created in 1934 by the merger of Mitsubishi Aircraft and Mitsubishi Shipbuilding (which had been making cars since 1917).