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Mitsubishi Continues Integration of North American Subsidiaries

31 October 2000

Mitsubishi Motors Continues Integration of North American Subsidiaries

    CYPRESS, Calif., Oct. 31 Mitsubishi Motors has completed
consolidation of seven key support groups as part of its integration of four
North America subsidiaries into a single entity, Mitsubishi Motors America,
Inc. (MMA), based in Cypress, CA.
    The consolidation began in June 2000 with formation of the North American
Operations Committee, comprising key senior executives from Mitsubishi Motors'
U.S. automotive companies who will provide strategic guidance for the newly
streamlined organization.
    The North American Operations Committee's first priority was to
consolidate key support functions in the four subsidiaries:  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).
    The committee announced today that the following key support groups have
been fully integrated:  Corporate Communications, Legal and Government
Relations, Procurement, Service/Parts, Information Systems, Corporate Planning
and Customs.  Areas still under study for consolidation include Human
Resources, Treasury and Accounting.  The integration of these support
functions is not designed to reduce headcount, as operations already have been
streamlined in the past few years.
    "This integration will improve the consistency, coordination and
effectiveness of our operations," said Mr. Hiroshi Yajima, Chairman and Chief
Executive Officer of Mitsubishi Motors' U.S. operations.  "The progress we've
made since our June announcement will enhance our competitiveness in the U.S.
and help us create a more market-driven organization.  We are confident we
will see the results of our efforts in higher sales and increased consumer
awareness and satisfaction."
    These consolidation steps reinforce 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, IL.