Mitsubishi Motors Corporation will reorganize the businesses of its fully owned domestic sales affiliates. As the market in Japan shrinks due to the declining total population and more users of ridesharing, this move aims to reinforce MMC’s business infrastructure by further improving business efficiency as well as selection and concentration. By the reorganization, MMC strives to continuously offer services that put the customer first and foremost.
Specifically, Nishi Nihon Mitsubishi Motor Sales based in Osaka and Chubu Mitsubishi Motor Sales based in Nagoya will be merged*1 as of April 1. These companies merged their back offices in April 2018 and have been improving their business efficiency since then, but this merger aims to move a step further and achieve economies of scale by spreading sales expertise to wider areas while also sharing customer information more quickly.
Preceding this merger was the establishment of Higashi Nihon Mitsubishi Motor Sales in April 2019, based in Tokyo, which covers a broad area consisting of the Tokyo metropolitan area and eight vicinal prefectures. The company got off to a solid start in its first year with increased profitability through horizontal deployment of best practices.
Another move is the sale of Hokkaido Mitsubishi Motor Sales based in Sapporo to D&D Holdings (D&D) based in Tokyo as of March 31. D&D operates value chain businesses including used car sales and car rental throughout Japan. It has a history of working together with MMC, including running three Mitsubishi-affiliated stores in the Asahikawa area, Hokkaido,*2 and is highly knowledgeable about customer needs there as well as sales methods for MMC products. MMC expects its stores to be operated in a way that cater to customers’ specific needs, and also business development leveraging the nature of the Hokkaido area where demand for rental cars is strong.
Following those reorganizations, MMC will have two fully owned domestic sales affiliates. Going forward, MMC will continue to cooperate closely also with its 100 sales affiliates throughout Japan to promote community-based sales and marketing catered to each business region, as well as to provide customer first services by optimizing sales affiliates and stores.
*1: Nishi Nihon Mitsubishi Motor Sales will absorb Chubu Mitsubishi Motor Sales in this merger. The merger will be officially decided upon approval at the Extraordinary Shareholders Meetings of both companies to be held in late March.
*2: In October 2017, Kita Hokkaido Mitsubishi Motor Sales was split off from Hokkaido Mitsubishi Motor Sales and established as D&D’s own company.
Overview of merging companies
|
Trade name
|
Nishi Nihon Mitsubishi Motor Sales
Co., Ltd. (Surviving company) |
Chubu Mitsubishi Motor Sales Co.,
Ltd. (Absorbed company)
|
|
Established
|
July 1, 2007
|
July 1, 2007
|
|
Address
|
1-4-10 Niitaka,
Yodogawa-ku, Osaka-shi, Osaka,
Japan |
3-18-7 Izumi
Higashi-ku, Nagoya-shi, Aichi,
Japan |
|
Representative
|
Kiyoshi Fukasawa, President
|
Kiyoshi Fukasawa, President
|
|
Capital
|
100 million yen
|
100 million yen
|
|
Major
shareholders |
100% owned by Mitsubishi Motors
Corporation |
100% owned by Mitsubishi Motors
Corporation |
|
Employees
|
997 (as of December 31, 2019)
|
618 (as of December 31, 2019)
|
|
Trade name
|
D&D Holdings Co., Ltd. (Assignee
company) |
Hokkaido Mitsubishi Motor Sales
Co., Ltd. (Company to be assigned) |
|
Established
|
October 8, 2014
|
June 1, 1977
|
|
Address
|
2-5-1 Nihombashi Hamacho
Chuo-ku, Tokyo, Japan
|
10-1-15 Minami 10-Jo Nishi
Chuo-ku, Sapporo-shi, Japan
|
|
Representative
|
Manabu Murawaki, President
|
Hideki Kimijima, President
|
|
Capital
|
10 million yen
|
100 million yen
|
|
Major
shareholders |
70% owned by Manabu Murawaki,
and the rest by others
|
100% owned by Mitsubishi
Motors Corporation |
|
Employees
|
134 total in the group
(as of December 31, 2019) |
307 (as of December 31, 2019)
|
SOURCE: Mitsubishi Motors
