TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has decided to drastically restructure its automotive-equipment business in accordance with a resolution adopted at the company's Executive Officers' Meeting held today. The restructure is designed to streamline decision-making in the business and accelerate the transformation of the company's automotive-equipment business in the face of rapid changes in this industry, including the shift to connected, autonomous, shared & service, and electric (CASE). Under the plan, Mitsubishi Electric now aims to spin off its automotive-equipment business in order to improve operational efficiency and restructure the business portfolio for greater profitability.
Last year, Mitsubishi Electric introduced a new Business Area structure to strengthen the company's business portfolio by reorganizing it into business areas that have the delegated authority needed to act with speed and efficiency.
As a first major step in CASE-related businesses, including electrification and advanced driver-assistance systems (ADAS), which have promising market potential and will require very high levels of investment, Mitsubishi Electric is seeking to collaborate with excellent partners that offer technological synergies. Focusing strategically on these fields and leveraging Mitsubishi Electric's cutting-edge technologies is expected to put the automotive-equipment business on a stronger growth trajectory.
Second, in fields where Mitsubishi Electric has competitive advantages, such as electric power-steering system products, strategies will focus on cost reduction and efficiency enhancement, reviewing business terms with customers, including to accelerate price shifting, and reallocating resources to the most profitable projects and models.
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Takeyoshi Komatsu
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Mitsubishi Electric Corporation
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