This year Mitsubishi Electric celebrates its 90th birthday. The history of Mitsubishi parallels the story of modern Japan. Mitsubishi Motors was formed as a wholly owned subsidiary of Mitsubishi Heavy Industries (MHI) in 1970. MHI is the modern incarnation of Mitsubishi Shipbuilding Co. Ltd., which bad been in existence since the mid-1880s and changed gears and started manufacturing automobiles in 1917. Following World War II, use of the corporate name Mitsubishi was banned for several years. MHI was chopped into three regional sections with the names East Japan Heavy Industries, Central Japan Heavy Industries, and West Japan Heavy Industries. Eventually the forbidden name began to reappear, and in 1964 MHI was reintegrated out of its three fragments. By 1967, MHI’s Motor Vehicle Division was producing about 75,000 cars a year. That division was spun off as an independent company in 1970, creating Mitsubishi Motors Corporation.
Mitsubishi Motors Corporation intended to grow as a global player and with a strong partner within the DaimlerChrysler it followed through on a global level with innovative, well-sought over technology. When they started the partnership with Chrysler, Chrysler bought 15 percent of company’s stock and by 1970s company was producing 260,000 cars a year. Chrysler quickly began to market Mitsubishi-built cars (Dodge Colt, Plymouth Arrow, Lancer and Celeste) in the United States. Company was growing rapidly. As Mitsubishi’s sales in the United States grew, friction began to arise between the company and its American affiliate Chrysler. Leading into the 80s tension over competing product models increase. By 1981, the company had captured 8 percent of the Japanese auto market, excelling beyond competitors Mazda, Toyota and Nissan. Mitsubishi entered the American automobile market under its own name for the first time in 1982. Seventy dealers in 22 U.S. markets sold the Mitsubishi line that year.
While the company was making its emergence into the U.S. market, sales in Japan began to sag. Mitsubishi Motors went public in 1988, ending its status as the only one of Japan’s 11 auto manufacturers to be privately held. To pave the way for the shift to public ownership, changes had to be made in the company’s stock agreements with both MHI and Chrysler. MHI agreed to reduce its share to 25 percent, retaining its position as largest single stockholder. Chrysler meanwhile increased its holding to over 20 percent. The $470 million in capital raised by the 10 percent initial offering enabled Mitsubishi to pay off part of its debt as well as to expand its investments throughout southeast Asia, where by now it was operating in the Philippines, Malaysia, and Thailand.
Toward the end of the 1980s, Mitsubishi initiated a major push to increase presence in the U.S. market. Part of Mitsubishi’s strategy to increase its American market share was to target buyers who were already likely to purchase Japanese or European cars, and offer its vehicles at prices slightly lower than comparable cars in other companies’ lines. As series of misfortunes in ate 90s brought trouble for Mitsubishi.
In hopes of reversing its fortunes, Mitsubishi entered into a partnership with DaimlerChrysler in March 2000, creating the world’s third largest vehicle maker, producing 6.5 million cars per year. On the eve of the transaction, though, Mitsubishi faced a crisis. The debacle did not cause DaimlerChrysler to jettison its deal, but Mitsubishi’s sales, particularly in Japan, slumped. Even with management shake-up the company still faced issues, like recalls hurt company profits. In 2002, Eckrodt took the helm of Mitsubishi and presided over additional changes. Most notable was the decision to spin off Mitsubishi’s truck and bus division to create a new company in 2003.
Although automobiles and Mitsubishi have become a popular duo in modern life, challenges still remain. Mitsubishi has and will continue to spend a lot of time boosting their safety and eco-compatibility without sacrificing any of the benefits or convenience they offer.
Symbol of prestige
Shape of the Mitsubishi Logo:
The name Mitsubishi was a combination of the words “mitsu” (three) and “hishi” (water chestnut, used in Japan to mean a rhombus or a diamond shape). The official translation of the name was “three diamonds.” The Mitsubishi logo was a combination of the Iwasaki family crest, three stacked diamonds, and the three-leaf crest of the Tosa Clan dating back to the companies origins in the 1800s. Some believe that the Mitsubishi logo represents a ship’s propellers, however that is a misconception.
The three diamonds signify reliability, integrity and success that helps Mitsubishi win the trust of its customers. The company is committed to provide its customers a safe and eco-compatible driving experience.
Color of the Mitsubishi Logo:
The Mitsubishi logo is colored red which denotes the confidence and attraction of the car company’s brands.
Font of the Mitsubishi Logo:
The Mitsubishi logo uses an elegant yet simple custom font. Car aficionados all over the world see the Mitsubishi logo as a symbol of excellence and continue to place their trust in their products.