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MITSUBISHI ELECTRIC CONCLUDES
LONG-TERM CONTRACT WITH GENERAL MOTORS TO SUPPLY IGNITION COILS
(Approx. 87.0 billion yen)
Mitsubishi Electric
expands US subsidiary's production-supply structure
TOKYO, August 2, 2001-- Mitsubishi Electric Corporation
(President: Ichiro Taniguchi) today announced the conclusion 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.
*Ignition Coil: An ignition composite part that
generates the necessary high-voltage for ignition. A type of transformer.
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 (approx. 87.0 billion
yen, using the exchange rate of $1=120 yen). At peak times of production,
it is expected that ignition coils will be supplied for 2 million
engines per year.
Background of the Order
Mitsubishi Electric newly 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 particularly high 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 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:
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Mason, Ohio, USA |
| 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: |
President, Mr. Takeo Sasaki |
| Number of Nmployees: |
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 US$33BN in the year ended
March 31, 2001. Additional information on Mitsubishi Electric is
available at global.mitsubishielectric.com.
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