Global Production, Outsourcing and Logistics: Hot Topic


This paper is about the recent news article that appeared in Fox Business, titled ‘Mitsubishi Motors announces Production, Sales and Export Figures for January 2008 (dated February 26th, 2008). The news article gives detailed figures for the company’s performance for January 2008. Figures include its global production, domestic and international sales, and export figures. The company produced a total of 115,805 units indicating a healthy growth rate of 7.5 percent.

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This was also a consecutive increase in production for the company since March 2007. The domestic figures in January also showed an increase of 14.5 percent which amounted to 72,622 units, indicating a consecutive increase for the past sixteen months. The main reason for this increase was due to the rising demand for its Lancer models in Russia, North America, Middle East, and Africa. There was a demand for 24,717 units which means an increase of 34 percent.

Another model was also responsible for the rise in production. The company’s Outlander model had good demand in Europe and China and the increase was 24 percent or 24,680 units. International production went down by 2.3 percent to 43.183 units. This was a decline of 2.7 percent when compared to the figures in January last year. This was in contrast to its past performance because the figures had been increasing since August 2007.

Global Production

Domestic sales in the Japanese market showed a fall in numbers. The number of vehicles sold was 15,145 and this was a fall of 2.3 percent when compared to last year. Out of this passenger cars showed an increase of 1.3 percent while the commercial vehicle sales showed a decline of 13.8 percent. The figures were 12,017 units and 3,148 units respectfully. The rise in passenger car sales was due to the success of its two models, the Lancer Evolution X and the Galant Fortis.


Exports from Japan showed an encouraging trend. There was a 36 percent increase in exports and the company had been maintaining a rising trend for the past fifteen months. Asian exports stood at 2,141units and showed an increase of 5.5 percent.

This was due to the encouraging demand in China for its Outlander and Pajero models. Mitsubishi has a tie-up with Hunan Changfeng Motor Co., Ltd. Exports to Europe showed a whopping increase of 100 percent and stood at 29,136 units, fuelled by the huge demand for Lancer and Outlander models as well as the buoyancy of the Russian and Ukrainian market. Mitsubishi Motor Corporation was formed in 1970 and is responsible for the production of a wide range of products from cars to heavy vehicles to consumer electronics. The company has also financial services for the benefit of its customers. More details about this company can be obtained through its website,


Even though this is a statistical site about production, sales, and exports of a privately owned corporation, this article refers to the three topics of discussion namely, global production, outsourcing, and logistics. Mitsubishi has manufacturing facilities and joint ventures in many countries. It has a presence in Asia, Europe, United States, Africa, and Australia. In other words, it is a global producer.

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A company this big, with production facilities, global sales, and exports would be dependant on efficient logistics. The Company has a separate unit for logistics called the Mitsubishi Logistics Company. Outsourcing is now a global phenomenon and most multi-national companies outsource a lot or some of their work to third parties. A joint venture with Hunan Changfeng Motor Co is taking place for the manufacture of vehicles in China. Any scenario that refers to any large organization will have all the topics covered. (JCN Newswire. 2008).


JCN Newswire. Comtex. Mitsubishi Motors Announces production, sales and export figures for 2008. Web.

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