International. Mitsubishi Electric announced that it has decided to drastically restructure its automotive equipment business in accordance with a resolution adopted at the company's recent executive officer meeting.
The restructuring is designed to streamline business decision-making 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 and service, and electric (CASE).
Under the plan, Mitsubishi Electric now aims to spin off its automotive equipment business 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 quickly and efficiently.
As an important first 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 seeks to collaborate with excellent partners that offer technological synergies.
Strategically focusing 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 reducing costs and improving efficiency, reviewing commercial terms with customers.
