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Mitsubishi Sales Announces Second Phase of the 'Change Initiative'

21 October 1998

Mitsubishi Motor Sales Announces Second Phase of the 'Change Initiative'

    CYPRESS, Calif., Oct. 20 -- Mitsubishi Motor Sales of
America, Inc. (MMSA), today announced the second phase of its ongoing
corporate "change process" which further supports the company's business
objectives while creating a stronger, results-driven management philosophy.
The new Driving to Win initiative supports four key company objectives:
Winning on the Bottom Line; Winning With Our Customers; Winning With Our
Dealers; and Winning With Our Employees.  Several major changes to MMSA's
organizational structure were announced to ensure the successful
implementation of the plan.
    "The goal of Driving to Win is to create the right business strategy,
executed through the right initiatives, supported by the right organizational
structure, and placing the right people within that structure for superior
results," said Pierre Gagnon, executive vice president and chief operating
officer.  "Through this major new initiative, and with the structure and
people to implement it, we will be in a position to meet the aggressive
business objectives we've set for the next two years."
    Gagnon reported that MMSA's Executive Committee reviewed current
structures and activities with an overriding objective to put the key people
in the right roles to support and implement Driving to Win.  The
reorganization was made in an effort to create cross-functional efficiencies
and to blend best practices.  The new organization includes the following:

    -- Parts and Service is now integrated at the national level, with plans
       to do the same at the field level.  Led by Vice President, Parts and
       Service, Robert LaBossiere, (formerly vice president of parts),
       reporting to Greg O'Neill, senior vice president and general sales
       manager.

    -- Product and Quality Assurance is a new department designed to elevate
       the company's focus on product quality.  Led by Vice President, Product
       Engineering and Quality Assurance, Dave McKenzie, (formerly vice
       president of service), reporting directly to Mr. Gagnon.

    -- Retail Development has been expanded in order to design
       customer-friendly retail processes, and training to implement those
       processes, for Sales, Service and Parts at the field and dealer level.
       Led by Manager, Retail Development, Greg Stahl, (formerly manager,
       dealer and field systems), reporting now to Greg O'Neill.

    -- Business Development is a newly-created group that includes the former
       Franchise Development team now expanded to emphasize business planning
       activities and dealer relations.  Headed by Vice President, Business
       Development, Odis Reid, (formerly vice president, franchise
       development), reporting to Greg O'Neill.

    -- Customer Management is a newly-created department with the purpose of
       improving customer satisfaction, loyalty and retention, headed by
       Manager, Customer Management, Rich Donnelson, (formerly service
       manager, western region), now reporting to Ellen Gleberman, senior vice
       president, legal, government relations and public affairs.

    -- Sales Operations, formerly Distribution, Logistics and Retail
       Development, led by Frances Oda, will continue to be led by Ms. Oda,
       vice president, sales operations, and will include Remarketing and
       Incentive activities as well.

    -- Fleet and Remarketing, as currently organized, has been disbanded with
       key functions moved to other parts of the company.  A new emphasis will
       now be placed on account management in fleet business focused on
       strategic alliances.  Gary Felps, formerly regional director, western
       region, will lead this new initiative as director of fleet operations.

    -- Marketing will now be headed by Peg Dilworth-Hunt, director, marketing,
       with Incentives moved to Sales Operations.

    -- Mitsubishi Motors Credit of America, (MMCA), is closing its five
       regional offices, centralizing certain functions to MMCA's national
       headquarters in Cypress, Calif., and moving some positions to MMSA
       regional offices, by June, 1999.

    Mr. Gagnon announced the Driving to Win plan, as well as the company's
organizational changes, in a letter to employees today.  Renewed statements
covering MMSA's vision and mission were included in the letter.  "Town Hall"
meetings are now being scheduled for Mr. Gagnon and other MMSA executives to
explain the Driving to Win philosophy to MMSA and MMCA employees around the
country.
    "If there is anything I've learned in my years in this business, it is
that there is no perfect organizational structure," said Gagnon.  "Moving
boxes on an organization chart will not solve our problems.  What we're trying
to accomplish is to outline a business plan that will achieve our basic goals,
and create a structure filled with people capable of making those goals a
reality.
    "MMSA's growth and profit potential are excellent.  The work we've done
over the last 18 months to establish and build a positive brand image is
beginning to take hold.  Now is the time to redouble our efforts to transform
MMSA into a company that fulfills the vision we've established for it," said
Gagnon.
    Mitsubishi Motor Sales of America, Inc. was established in 1982 by
Mitsubishi Motors Corporation, Tokyo, and markets a full line of vehicles,
including coupes, convertibles, sedans and sport utility vehicles.