Mitsubishi History of Origin and Automotive Industry
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Mitsubishi Motors Headquarters building in Shiba, Minato
Mitsubishi Jidōsha Kōgyō KK
April 22, 1970
Minato, Tokyo, Japan
Number of locations:
Cypress, California, United States
Tonsley Park, South Australia, Australia
Taytay, Rizal, Philippines
Khlong Luang, Pathum Thani, Thailand
Takashi Nishioka (Chairman)
Osamu Masuko (President & Representative Director)
Automobiles, luxury cars, commercial vehicles
¥2.110 trillion (2013)
¥99.000 billion (2013)
The origin of Mitsubishi goes back to 1870, when the founder, Yataro Iwasaki, started a shipping firm with three aging steamships. Yataro's brother, son and nephew expanded the business into various fields during their respective terms as president and set the foundation of the Mitsubishi companies. After WWII, the original Mitsubishi organization was disbanded to become independent companies as they are today. Here is a summary of the 140 years time shared by the Mitsubishi companies.
The Early Years
The history of "Mitsubishi" parallels the story of modern Japan. The founder, Yataro Iwasaki was from the prefecture of Kochi on the island of Shikoku, which was the home of the powerful Tosa clan. He worked for the clan and distinguished himself in managing its Osaka trading operations. In 1870, he set up his own shipping company, Tsukumo Shokai, with three steamships chartered from the clan. This was the beginning of Mitsubishi.
The company grew rapidly while undergoing a number of name changes including Mitsukawa Shokai, Mitsubishi Shokai, Mitsubishi Jokisen Kaisha (Mitsubishi Steamship Company), Yubin Kisen Mitsubishi Kaisha (Mitsubishi Mail Steamship Company). Mitsubishi Mail Steamship Company inaugurated service to China and became the first Japanese company to open an overseas route. But the political winds shifted against Mitsubishi in the early 1880s, and the government sponsored the establishment of a competitor. The ensuing competition nearly bankrupted both companies.
Yataro died of cancer in 1885 and his younger brother Yanosuke succeeded him as president of Mitsubishi. The feud between Mitsubishi and its competitor ended with a government-arbitrated merger the same year, which created Nippon Yusen--today's NYK Line.
While competition was escalating on the sea, Mitsubishi was diversifying ashore. The company purchased the Yoshioka copper mine in Okayama and Takashima coal mine in Nagasaki. It leased and then purchased the Nagasaki Shipbuilding Yard from the government in 1884 and later engineered Japan's first domestically produced steel steamship there.
In 1885, Yanosuke Iwasaki succeeded his elder brother, Yataro, as head of the Mitsubishi organization. After the independence of NYK, Mitsubishi continued to grow and diversify under the autocratic leadership of Yanosuke. He bought up more mines to provide resources for Mitsubishi and Japan's growing industries. He also incorporated the Mitsubishi organizations as a modern corporation. Yanosuke set about rebuilding the organization around its mining and shipbuilding businesses. He expanded the organization's positions in banking, insurance and warehousing, and thus laid the foundation for future growth and development. In 1890, he purchased 80 acres of the land next to the Imperial Palace now known as Marunouchi
Yataro's son, Hisaya, assumed the presidency in 1893. The University of Pennsylvania graduate restructured Mitsubishi to support increasingly diverse business operations. He set up divisions for banking, real estate, marketing, and administration, as well as for the original mining and shipbuilding businesses. Some of Hisaya's private investments are part of today's Mitsubishi companies. He purchased the Kobe Paper Mill, which is today's Mitsubishi Paper Mills, and he backed the founding of Kirin Brewery. His cousin Toshiya founded Asahi Glass, Japan's first successful manufacturer of plate glass. Hisaya insisted on the observance of firm ethical principles in business dealings. After the outbreak of WWI in 1914, he called on all the Mitsubishi employees to redouble their commitment to integrity and fairness. Philanthropy was a lasting emphasis for Hisaya. He donated to the city of Tokyo two expansive Japanese gardens - Rikugien and Kiyosumi-Teien, and established Toyo Bunko, a library for housing oriental works
Modernization and Dissolution
Koyata Iwasaki, the son of Yanosuke, took over the presidency from Hisaya in 1916 at the age of 38. Like Hisaya, he had studied abroad and was a graduate of Cambridge University. He led the Mitsubishi organization for nearly 30 years and played a pivotal role in shaping the development of Japanese industry. Under Koyata, Mitsubishi was modernized further as the divisions were incorporated into semiautonomous companies. Koyata steered Mitsubishi to leadership in such sectors as machinery, electrical equipment, and chemicals. The companies that later became Mitsubishi Heavy Industries developed automobiles, aircraft, tanks, and buses. And Mitsubishi Electric also became a leader in electrical machinery and in home appliances. The Iwasaki family relinquished some of its control over Mitsubishi through a public offering of shares in the core holding company. By the end of World War II, outside investors held nearly one-half of the equity. "Japan's first series-production passenger car, the Mitsubishi Model A (1917)" Koyata encouraged his managers and employees to stand above the xenophobia that swept Japan during the war years. "We count many British and Americans among our business partners," he reminded Mitsubishi executives shortly after the outbreak of hostilities. "They are our friends who have undertaken projects together with us and who have shared interests with us. Should peace come again, they should again become our partners."
After the war, the allied occupation forces demanded that Japan's big industrial groups disband. The last Mitsubishi president, Koyata Iwasaki, resisted conforming to the demands but unfortunately passed away in 1945. Mitsubishi Headquarters disbanded on September 30, 1946, and many of the Mitsubishi companies subsequently split into smaller enterprises.
A New Beginning
The old Mitsubishi organization ended in 1946. The Mitsubishi holding company was dissolved while the trading house fragmented into hundreds of independent enterprises. Most of the Mitsubishi companies abandoned the name and emblem under pressure from the occupation forces.
In 1952, the San Francisco Peace Treaty was concluded and Japan regained a welcome place in the international community.
In 1954, more than 100 companies that had been part of the trading house, Mitsubishi Corporation, merged to reestablish that company. Similarly, the principal components of Mitsubishi Heavy Industries reunited in 1964. Mitsubishi companies that had abandoned that name after the war began using it and the three-diamond mark again.
Japan was the scene of unprecedented economic growth in the 1950s and 1960s, and the Mitsubishi companies were very much a part of that growth in their established industries and in new ones. To commemorate the centennial anniversary of the founding of the first Mitsubishi Company, the Mitsubishi companies established the Mitsubishi Foundation in 1969. The companies are also active individually in supporting worthy causes through their own charitable foundations and in other ways.
Mitsubishi pavilions have been highlights of expositions in Japan since the historic EXPO'70 in Osaka in 1970. In every way, the companies take part actively in the life of the community they serve.
"This is a version of Mitsubishi History with more details of the Auto Industry,
This information was collected on the internet and written by another author."
MightyRam50.net is not responsible for the accuracy of this information
Mitsubishi's automotive origins date back because far because 1917, whenever the Mitsubishi Shipbuilding Co., Ltd. introduced the Model A, Japan's initially series-production vehicle. An completely hand-built seven-seater sedan based found on the Fiat Tipo 3, it proven pricey compared with its American plus European mass-produced rivals, plus was discontinued inside 1921 following just 22 had been built.
In 1934, Mitsubishi Shipbuilding was merged with all the Mitsubishi Aircraft Co., a firm established inside 1920 with manufacture aircraft motors plus different components. The unified organization was recognized as Mitsubishi Heavy Industries, plus was the biggest private business inside Japan. MHI concentrated about production aircraft, ships, railroad vehicles plus machinery, in 1937 developed the PX33, a prototype sedan for military employ. It was the initial Japanese-built passenger vehicle with full-time four-wheel drive, a development the organization might return with virtually fifty years later inside its quest for motorsport plus sales achievement.
A 1937 Mitsubishi PX33 about show at the Mondial de l'Automobile inside September 2006.
Immediately after the end of the Second World War, the business returned with production cars. Fuso bus manufacturing resumed, when a little three-wheeled cargo car called the Mizushima along with a scooter called the Silver Pigeon were additionally developed. But, the zaibatsu were ordered with be dismantled by the Allied powers inside 1950, plus Mitsubishi Heavy Industries was split into 3 territorial firms, every with an participation inside engine car development: West Japan Heavy-Industries, Central Japan Heavy-Industries, plus East Japan Heavy-Industries.
East Japan Heavy-Industries started importing the Henry J, an inexpensive American sedan built by Kaiser Motors, inside knockdown kit shape inside 1951, plus continued with bring those to Japan for the rest of the car's three-year manufacturing run. The same year, Central Japan Heavy-Industries concluded a synonymous contract with Willys for CKD-assembled Jeep CJ-3Bs. This deal proven more durable, with certified Mitsubishi Jeeps inside manufacturing till 1998, thirty years following Willys themselves had changed the model.
By the beginning of the 1960s Japan's economy was gearing up; wages were increasing as well as the idea of family motoring was taking off. Central Japan Heavy-Industries, today termed as Shin Mitsubishi Heavy-Industries, had absolutely re-established an automotive department inside its headquarters inside 1953. Then it was willing with introduce the Mitsubishi 500, a mass marketplace sedan, to satisfy the new need from customers. It followed this inside 1962 with all the Minica kei automobile as well as the Colt 1000, the initial of its Colt line of family vehicles, inside 1963.
West Japan Heavy-Industries plus East Japan Heavy-Industries had furthermore extended their automotive departments inside the 1950s, as well as the 3 were re-integrated because Mitsubishi Heavy Industries inside 1964. Within 3 years its output was over 75,000 cars yearly. After the lucrative introduction of the initial Galant inside 1969 plus synonymous development with its commercial car division, it was decided which the firm must create a single surgery with focus found on the automotive industry. Mitsubishi Motors Corporation was created about April 22, 1970 because a wholly owned subsidiary of MHI below the leadership of Tomio Kubo, a lucrative engineer within the aircraft division.
The logo of 3 red diamonds, shared with over forty additional businesses in the keiretsu, predates Mitsubishi Motors itself by virtually a century. It was selected by Iwasaki Yatarō, the founder of Mitsubishi, because it was suggestive of the emblem of the Tosa Clan that initially employed him, plus considering his own family crest was 3 rhombuses stacked atop every alternative. The name Mitsubishi is a portmanteau of mitsu plus hishi.
Part of Mr. Kubo's expansion approach was with heightening exports by forging alliances with well-established foreign firms. So, inside 1971 MHI available U.S. automotive giant Chrysler a 15 % shares inside the hot firm. Thanks to the deal, Chrysler started marketing the Galant inside the United States because the Dodge Colt pushing MMC's yearly manufacturing beyond 250,000 cars. In 1977, the Galant was available because the Chrysler Sigma inside Australia.
A 1973 Mitsubishi Galant, the basis for the company's initial captive import deals with Chrysler.
By 1977, a network of "Colt"-branded distribution plus sales dealerships had been established over Europe, because Mitsubishi desired with start marketing cars straight. Annual manufacturing had at this point grown from 500,000 cars inside 1973 with 965,000 inside 1978, whenever Chrysler started marketing the Galant because the Dodge Challenger as well as the Plymouth Sapporo. But, this expansion was beginning with result friction; Chrysler saw their overseas markets for subcompacts to be straight encroached by their Japanese couples, whilst MMC felt the Americans were demanding too much state inside their business decisions.
1980s & MMAL
Mitsubishi finally accomplished yearly creation of 1 million vehicles inside 1980, however, by this time its ally wasn't thus healthy; As element of its battle with avoid bankruptcy, Chrysler was forced with market its Australian production division with MMC which year. The modern Japanese owners renamed it Mitsubishi Motors Australia Ltd.
In 1982, the Mitsubishi brand was introduced with the American marketplace for the first-time. The Tredia sedan, as well as the Cordia plus Starion coupés was initially available by 70 dealers inside 22 states, with an allocation of 30,000 cars between them. This quota, limited by mutual agreement between your 2 countries' governments, had with been included amidst the 120,000 vehicles earmarked for Chrysler. Toward the finish of the 1980s, because MMC initiated a main drive with heighten its U.S. presence, it aired its initial nationwide TV advertising campaign, plus prepared plans with grow its dealer network with 340 dealers. By 1989, Mitsubishi's worldwide manufacturing, including its overseas affiliates, had reached 1.5 million units.
Despite the continuous tensions between Chrysler and Mitsubishi, they agreed with combine inside a car production surgery inside Normal, Illinois. The 50/50 venture offered a method to circumvent the voluntary import restrictions, whilst providing a unique line of compact plus subcompact vehicles for Chrysler. Diamond-Star Motors from the parent companies' logos: 3 diamonds along with a pentastar was included inside October 1985, plus inside April 1986 ground was broken about a 1.9 million square-foot creation center. In 1987, the firm was marketing 67,000 vehicles a year inside the U.S., yet whenever the plant was completed inside March 1988 it available an yearly ability of 240,000 cars. Initially, 3 platform-sharing compact 2+2 coupés were introduced, the Mitsubishi Eclipse, Eagle Talon plus Plymouth Laser, with alternative models being introduced inside next years.
Two years following the merger of Daimler plus Chrysler with shape DCX, the U.S.-German conglomerate paid US$1.9 billion for a controlling 34 % of MMC, inside an effort with fulfil chairman Jürgen Schrempp's vision of the "Welt AG". The cost reflected a US$200 million discount found on the initially agreed figure, caused by the public disclosure of the defect cover-up scandal. In March 2001 it improved its stake with 37.3 % whenever it acquired Volvo's stake inside MMC's truck-making surgery, further improving Mercedes' share of the marketplace it absolutely dominated. But, boardroom wrangles at DCX inside April 2004 prevented them providing financial assistance because Mitsubishi tried with minimize its crippling debts. Whenever a US$4 billion save package was agreed with Tokyo-based Phoenix Capital inside May 2004, DCX's stake was reduced with 23 %, plus further recapitalizations subsequently diluted the carrying with 12.4 %. Finally, about November 11, 2005, the remaining stock was available for US$1.1 billion an US$800 million reduction inside five years. Three days later the buyer, investment bank Goldman Sachs, available the shares about for US$80 million profit.
New main stockholder Phoenix Capital followed suit the following month, marketing all however 50 million of its 575 million shares with JPMorgan about December 9, 2005. When again, the investment bank offloaded their buy inside a limited days for tens of millions inside profit. In both instances, the eventual customers were element of the Mitsubishi keiretsu, returning MMC with Japanese ownership.
The advantages Mitsubishi had watched due to its sturdy presence inside south-east Asia reversed themselves because a happen of the financial crisis inside the area that started inside 1991 with all the advent of the collapse of the Japanese asset cost bubble, referred with inside Japan because the beginning of the Lost Decade plus continued with 1997. The collapse was partly the outcome of the Plaza Accord agreement inside 1985, that desired with equalize the United States dollar with all the Japanese yen as well as the German mark. In September of which year the business shut its Thai factory inside reaction with a crash inside the country's currency plus plummeting customer need. The big truck plant, that had yielded 8,700 pickups inside 1996, was closed down indefinitely. Additionally, Mitsubishi had small help from sales inside Japan, that slowed considerably throughout 1997 plus were affected by which country's own financial uncertainty into 1998. Other Japanese automakers, including Toyota plus Honda, bolstered their own slipping domestic sales with achievement inside the U.S. But, with a comparatively little percentage of the American marketplace, the impact of the chaos inside the Asian economy had a better impact on Mitsubishi, as well as the company's 1997 losses were the worst inside its history. Additionally, it lost both its rank because the 3rd biggest automaker inside Japan with Mazda, plus marketplace shares abroad. Its stock cost fell precipitously, prompting the business with cancel its year-end dividend payment.
In November 1997, Mitsubishi hired Katsuhiko Kawasoe with substitute Takemune Kimura because business president. Kawasoe unveiled an aggressive restructuring system which aimed with cut fees by ¥350 billion inside 3 years, lower personnel by 1,400, plus return the business with profitability by 1998. However when the system had certain initial achievement, the company's sales were nevertheless stagnant because the Asian economy continued with sputter. In 1999, Mitsubishi was forced again with skip dividend repayments. Its interest-bearing debt totaled ¥1.7 trillion.