Search

With the 2006 fiscal year over, car companies have started posting their sales output for the past year. Mitsubishi Motors, one of Japans car manufacturers, has posted their sales report for 2006 which shows that for the first time in four years, they have turned a good amount of profit.

The said report is indeed a piece of good news for Mitsubishi employees around the world. The Japanese brand reported to have made a profit of $73 million for the past year. That is a considerably a huge improvement over 2005 when the company lost $770 million. Mitsubishis long fight to the top after it was shaken by a scandal a few years back will certainly be given a big boost after they have reported a profit for the first time since the year 2002.

Mitsubishi reported that for the past year, they have increased their sales by 4 percent as compared to the previous year. The car companys sales figure around the world totaled to some $18.5 billion. Of that sale figure, the North American market is the biggest consumer of Mitsubishi vehicles.

This year, Mitsubishi continues its success in the North American auto market when they sold 31,645 vehicles for the first three months of the year. Year to date sales after the first three months of this year is 23.2 percent higher than last years first quarter sales.

One of the reasons for the companys profit pointed out to its cost cutting program that they currently are implementing in the United States. Dan Irvin, speaking for Mitsubishi, has this to say: We're doing everything we can to control our costs and provide vehicles on a timely basis. We've been working with our suppliers to get value added and value engineering ideas to control costs. The company has done this by offering a $40 million concession package to members of the United Auto Workers (UAW) in exchange for no involuntary workforce reduction. The union approved the deal and as a result, Mitsubishi has succeeded in cutting down their costs in the United States.