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"California Here We Come" -Mitsubishi Motors

27 June 2000

Mitsubishi Motors Announces Consolidation of North American Subsidiaries

    CYPRESS, Calif., June 27 In support of its goal to more
successfully compete in the U.S. market, Mitsubishi Motors Corporation's (MMC)
board of directors today authorized first steps toward the consolidation of
its major U.S. subsidiaries in a newly expanded Mitsubishi Motors America,
Inc. (MMA) to be based in Cypress, CA.
    Action begins immediately to establish a new decision-making body, called
the North American Operations Committee, to provide strategic oversight for
the newly streamlined organization.  Members of the Committee will include key
senior executives from Mitsubishi Motors' U.S. automotive companies.  A
product quality/technical task force will also be established to ensure that
new product design and manufacturing accurately reflect the demands of
American consumers.
    In addition, the key support functions of Mitsubishi Motor Sales of
America, Inc. (MMSA), Mitsubishi Motor Manufacturing of America, Inc. (MMMA),
Mitsubishi Motors R&D of America, Inc. (MRDA) and the current Mitsubishi
Motors America, Inc. (MMA) will be integrated, with the goal to have the
consolidation completed by December 31, 2000.  The integration will focus on
consistency, coordination and delivery of activities and services to enhance
operational efficiency.  Since job reductions have already occurred in most of
MMC's North American subsidiaries, this consolidation is not designed to
create further job cuts.
    "We have every intention of continuing our current momentum toward higher
sales and wider consumer awareness in the U.S. market," said Mr. Hiroshi
Yajima, Chairman and Chief Executive Officer of Mitsubishi Motors' U.S.
operations.  "The steps we've announced today are designed to create a more
efficient and more market-driven organization in one of the world's most
important automotive arenas."
    This most recent action authorized by the MMC board reinforces the
company's commitment to the North American market, including such recent
actions as establishing a new, higher sales goal of 400,000 vehicles per year
by 2005, and authorizing Project America, an initiative which will result in
three new products designed in the U.S. specifically for North American
consumers and built at the company's plant in Normal, Illinois.

    Mitsubishi Motors Corporation (MMC) subsidiaries in the U.S. include:
    Mitsubishi Motors America, Inc. (MMA), based in Southfield, MI, and its
subsidiary, Mitsubishi Motors Research and Development of America, Inc.
(MRDA), located in Ann Arbor, MI, which is responsible for the design and
engineering of Mitsubishi cars and light trucks for the American market.  MMA
also oversees parts procurement for MMC, and coordinates government relations,
public affairs and Mitsubishi Motors USA Foundation activities on behalf of
the U.S. Mitsubishi Motors companies.
    Mitsubishi Motor Manufacturing of America, Inc. (MMMA), located in Normal,
IL, which produces the Mitsubishi Galant, Eclipse and Eclipse Spyder, as well
as two additional models for DaimlerChrysler Corporation.
    Mitsubishi Motor Sales of America, Inc. (MMSA), based in Cypress, CA,
which is the sole distributor of Mitsubishi-badged cars and light trucks in
the American market through a network of more than 500 dealers in 50 states.