Content area
Full Text
Kohei Takeuchi's career has come full circle in the last decade.
The founding CEO of Mitsubishi Motor Sales of America when it began selling cars in 1982, Takeuchi returned last summer after a six-year absence.
He replaced Kazue Naganuma, who had headed up Mitsubishi's U.S. operations since the end of Takeuchi's first American tour of duty in 1987. Naganuma received a big promotion, returning to Japan as deputy corporate general manager for international business in North America, a job that carries with it a seat on Mitsubishi's board.
The management shuffle doesn't surprise industry observers, given Japanese automotive companies' penchant for rotating their executives. It did, however, catch Takeuchi off guard.
"It came as a surprise. I was called into the office in May, and was told I'd be returning." Two months later he and his wife were ensconced in a rented home in Newport Beach.
The move reunites Takeuchi with Richard Recchia, Mitsubishi America's longtime COO/senior vice president. Recchia remains the "public face" of Mitsubishi in the U.S., communicating with dealers, running day-to-day operations and implementing decisions made by Takeuchi or handed down from Tokyo.
The shy, deferential Takeuchi contrasts sharply with the effusive Naganuma, but he inherits the same set of challenges. Among the challenges:
* Hard times for Japanese carmakers in general, brought on by the high yen, and a resurgence of America's Big 3 automakers. The high yen drives up the prices of Mitsubishi's Japanese-built vehicles, which represent about 40% of its U.S. sales. With a smaller percentage of its factory capacity here than the larger Japanese carmakers, swings in exchange rates are a bigger influence on Mitsubishi.
* Breaking out from the second-tier of Japanese automakers. Mitsubishi would require about a 70% boost in sales from its present 200,000 units a year to catch up with Mazda, Nissan and Toyota. Car sales have tripled in the last six years, but exchange rate problems and a 25% tariff on the popular Mighty Max pickup truck could put the brakes on a further major sales expansion.
* Redefining its long-term relationship with Chrysler Corp. Close links and a joint venture continue to tie the two companies, but a resurgence by the No. 3 U.S. automaker and changes in its product line...