Story & photos by Tet Andolong
WHEN people hear the name Mitsubishi, most of them think of cars. Truth be told, the company is actually much more than an auto manufacturer. Originally started as a shipping and trading company by the Iwasaki family in 1870, Mitsubishi Shokai, as it was first named, became one of the world’s leading shipbuilding companies. In 1881 it skillfully diversified into the mining business. Over the next 140 years, Mitsubishi Corp. grew into a multibillion dollar conglomerate that employs 762,000 people with total assets of ¥400 trillion.
History will show that the company has proven its resilience and ability to recover from adversity. After Japan was defeated in World War II and the country was devastated, one of the entities that greatly contributed to the nation’s recovery was Mitsubishi Corp. Today, Mitsubishi owns 29 major companies, including The Bank of Tokyo-Mitsubishi UFJ Ltd., Meiji Yasuda Life Insurance Co., Mitsubishi Estate Co., Mitsubishi Motors Corp., Mitsubishi Electric Corp., Nikon Corp., Asahi Glass Co., Mitsubishi Fuso Truck and Bus Corp., Mitsubishi Chemical Corp. and Kirin Holdings Co. Ltd., just to name a few.
In 1970 Mitsubishi Motors Corp. (MMC) was established as a company and 2017 will be the 100th year since the first Mitsubishi passenger car “Model A” was developed. Mitsubishi Motors Philippines Corp. (MMPC), meanwhile, was established in 1963 and is still going strong after 53 years.
Every global company faces trials and challenges. Without their tribulations, companies would never improve and grow. It’s how they work through crises that become stronger and successful. An organization has mission, goals and objectives, and the success of most companies is depended upon one common core value, which is customer satisfaction.
On a recent trip to Japan, this writer was given an opportunity to see at close quarters just why this company has been at the forefront of Japan’s drive toward becoming a pillar of Japanese commerce and a global economic power.
We visited the 1-million-square meter Mitsubishi Plant in Okazaki, which was built in 1962. This is where the Outlander, Outlander PHIV and ASX are produced. The tour included the production facility, assembly line, R&D Center and the Mitsubishi Gallery. The production and assembly line has 1,796 employees and 700 robots. The factory is capable of producing 962 units per day. This means that it is able to complete one unit every 61 seconds and 52 units in one hour.
We were also shown their “Lane Keeping Assist” technology, which detects the car’s position when you’re on the road by monitoring if you’re in or out of your lane. The Lane Keeping Assist issues a warning if you are unintentionally straying out of your lane.
Afterwards, we were treated to a demonstration ride with Mitsubishi Dakar Rally champion Hiroshi Masuoka, who drove a Montero Sport through an off-road track inside the Okazaki Plant.
But the most interesting parts of the tour were the Mitsubishi Electromagnetic Wave Testing Laboratory and the Crash Test.
Inside the Electromagnetic Wave Testing Laboratory, a radio wave anechoic chamber is used to test the effects of various radio waves on a vehicle. It is lined with metal plates to stop the radio waves from leaking out. Also, the radio wave-absorber materials that are used inside the chamber stop the reflection of the waves during the tests. The radio wave-immunity test for checking the electronic equipment in a car does not malfunction because of the external radio waves. A 10-meter test is used to measure noise interference from antennas, radios, televisions, etc. The car being tested can be controlled from the computer in the measurement room. This allows remote operation of the accelerator and brake, as well as the turntable and the chassis dynamometer.
During the Crash Test, a brand-new Mirage with two dummies was used and the result was quite impressive. The frontal air bags, including the knee air bags, which were installed in the lower portion of the dashboard deployed instantaneously resulting in minor injuries to the “driver” with no damage to his legs.
The Mitsubishi Mirage won the Association of Southeast Asian Nations (Asean) New Car Assessment Program (NCAP) Grand Prix Awards in 2015. It earned the highest score for “adult occupancy protection” in a minicar category.
It also garnered the best safety score with four stars, having scored 13.07 out of the maximum 16.00 points. The Mirage is excellent with fuel savings and its standard equipment safety features, including antilock braking system (ABS), seat-belt reminder (SBR) dual airbag (except for the base model; GL) and double seatbelt pretension system.
Just about a couple of weeks before we left for Japan, MMC announced that Nissan Motors had become its largest shareholder after completing the purchase of 34 percent of their stocks for ¥237 billion. During an intimate interview with MMC Chairman of the Board, President and CEO Osamu Masuko, I asked how the buy-out would affect the DNA of their vehicles and their management structures.
“Autonomy is separate. Marketing is separate. MMC is going forward as an independent company,” Masuko replied. “Through this strategic alliance with Nissan, MMC will drastically boost its competitiveness in products and technology. This alliance has the basic spirit of respecting each other’s brand and history,”
According to Chairman and CEO of France-based Renault, Chairman and CEO of Japan-based Nissan Carlos Ghosn, “This alliance is based [on the principle] that each company keeps its own personality and brand. One of the reasons I want Masuko-san to stay as the CEO is because I want the employees to know that Mitsubishi remains Mitsubishi,” Ghosn said.
“Mitsubishi Heavy Industries, Mitsubishi Corp. and The Bank of Tokyo-Mitsubishi UFJ—the long-standing shareholders of MMC—welcome the new equity investment of Nissan and have assented to the selection of the new board member candidates and management support. Three Mitsubishi group companies and Nissan will keep over 51 percent of equity stake of MMC,” Masuko added.
Meanwhile, in the Philippines MMPC has been cooperating with the Department of Trade and Industry (DTI) in establishing the Comprehensive Automotive Resurgence Strategy (CARS) Program. “We have invested about P4.3 billion for the expansion of the passenger-car production line, as well as construction of the new stamping plant,” Masuko explained. “With the attendance of President Duterte on October 26, the letter of intent related to the contribution to the Philippine economy through local production expansion was signed by Secretary [Ramon M.] Lopez of DTI,” he added.
According to MMPC president and CEO Yoshiaki Kato, “The Mirage G4 is their topselling model for Mitsubishi, which accounts for 1,500 to 2,000 units a month, while the Montero Sport averages 1,500 a month, making it the second best-selling vehicle in the company’s lineup.”
The Mirage G4 will start in production by January of next year at the Mitsubishi Plant in Santa Rosa, Laguna. The plant can produce around 50,000 units a year, but with additional investment, it can be extended to 100,000 units, according to Masuko. The production of the Mirage and the new stamping plant are also planned to be completed by January 2018.
With the CARS Program, MMPC is contributing to the development of the automotive industry in the country by promoting the local production, of their vehicles and expansion of local parts procurement, as well as employment for Filipinos. “Just for the new plant, we have added 400 more people to the previous number of 1,000 and we will keep growing, hopefully,” Kato said.