| Mitsubishi Electric,
General Motors Ink Nine-Year, $740 Million Contract |
 |
| Mitsubishi Electric Automotive America
to Provide GM with Ignition Coils for Two Million Engines |
|
| TOKYO, August 2, 2001 --- Mitsubishi
Electric Corporation (President: Ichiro Taniguchi) today announced
the signing of a contract with General Motors Corporation (GM)
(President: G. Richard Wagoner Jr.) for the long-term supply
of automotive ignition coils. |
|
| Furthermore, due to this order, Mitsubishi Electric will carry
out a capital investment for its US subsidiary, Mitsubishi Electric
Automotive America, Inc. (MEAA) to expand its production-supply
structure. |
|
| Details of Order |
| Current plans are that Mitsubishi Electric will deliver ignition
coils to GM in the nine-year period from 2001 to 2009. The total
amount of the order will amount to $730 million. At peak times
of production, it is expected that ignition coils will be supplied
for two million engines per year. |
|
| Background of the Order |
| Mitsubishi Electric began supplying ignition coils to GM in
January 1998. Since then its ignition coils have been built
into approximately 500,000 engines. Mitsubishi Electric’s
delivery results and the outstanding quality of its products
have been highly evaluated by GM. This led to GM awarding Mitsubishi
Electric the "Supplier of the Year" award for two
consecutive years in 1999 and 2000. This large order signifies
GM’s high appraisal of Mitsubishi Electric’s delivery
results. |
|
| Future Prospects |
| Mitsubishi Electric will develop and design the ignition coils
in Japan, and the Maysville, KY, plant of MEAA will be responsible
for production. In order to realize this plan, Mitsubishi Electric
will expand the Maysville plant, introduce additional production
equipment and prepare for the expansion of the production-supply
system. In line with the production schedule of individual ignition
coils, Mitsubishi Electric is planning to make additional equipment
investments in steps. |
|
| By using this business opportunity, Mitsubishi Electric will
propose other business ideas to General Motors regarding automotive
equipment items to develop new businesses. |
|
| About Mitsubishi Electric Automotive
America, Inc. (MEAA) |
|
| Head Office: |
|
Mason, Ohio |
| Established: |
|
June 1987. Company’s name changed
and production and sales merged in July 1997. |
| Business: |
|
Production and sales of automotive products
including alternators, starters, car-audio and car-electronics |
| Capital: |
|
$25.5 million (100% owned by Mitsubishi
Electric Corporation) |
| Top Executive: |
|
Mr. Takeo Sasaki, President |
| Number of Employees: |
|
Approx. 860 employees |
| Annual Sales: |
|
Approx. $700 million in 2000 |
|
|
| About Mitsubishi Electric Corporation |
| With 80 years of experience in providing reliable, high-quality
products to both corporate clients and general consumers all
over the world, Mitsubishi Electric Corporation (FTSE: 6503q.l)
is a recognized world leader in the manufacture, marketing and
sales of electrical and electronic equipment used in information
processing and communications, space development and satellite
communications, consumer electronics, industrial technology,
energy, transportation and construction. The company has operations
in 34 countries and recorded consolidated group sales of over
$33 billion in the year ended March 31, 2001. |
| |
| Additional information on Mitsubishi Electric is available
at global.mitsubishielectric.com. |
|
| For more information: |
Matthew Nicholson
Public Relations Dept.
Mitsubishi Electric Corporation
Tel: +81-3-3218-2346
Matthew.Nicholson@hq.melco.co.jp |
| |
