After it was saved by Nissan last year, Mitsubishi Motors is now emerging from the financial ashes. MMC plans to spend over 600 billion yen ($5.35 billion) in capital expenditure and research and development over the next three years through fiscal year 2019.
The big capex and R&D spending is part of a bid to turn around its business after the recent scandal of fuel economy test manipulation, admitted by the carmaker in April 2016. This is according to Nikkei, which adds that the new plan calls for spending the equivalent of 5% of annual sales on equipment and the same proportion on R&D.
Specifics will be released tomorrow together with a new medium-term plan, but the Japanese daily says that funds will be used by for the development of electrified vehicles and to boost production in China and Indonesia.
Last month, the Renault Nissan Mitsubishi Alliance revealed its Alliance 2022 six-year plan with eye-popping numbers. With MMC joining the party, objectives have grown – they include the doubling of annual synergies to €10 billion by the end of the plan, with more than nine million vehicles to share four common platforms. The use of common powertrains will cover 75% of total sales.
“To achieve this target, on one side Renault, Nissan and Mitsubishi will accelerate collaboration on common platforms, powertrains and next-generation electric, autonomous and connected technologies. From the other side, synergies will be enhanced by our growing scale. Our total annual sales are forecast to exceed 14 million units, generating revenues expected at $240 billion by the end of the plan,” said Carlos Ghosn, chairman and CEO of the Alliance.
Full story on the Alliance 2022 plan here.
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Just $5.35 billion?? P1 alredi spent more than with great cars & latest tech.
They spend USD Billions on capex and R&D to sell GLOBALLY. And most probably will get back the returns.
P1 spend MYR Millions (of our tax monies) on R&D to sell primarily in Malaysia. Will P1 get back the returns?
And so you know mitsubishi has heritage that goes all the way back building half of the plane and engine of the infamous ZERO fighters of world war II. The other half was built by Nakajima which is now Fuji Heavy industries which builts Subarus. So they have libraries full of knowledge. With big budget, many dreams can be realized. Proton?
Proton got coldest aircond ?