ENVIRONMENTAL SUSTAINABILITY REPORT 2003

ENVIRONMENTAL SUSTAINABILITY REPORT 2003

Introduction to the Environmental Sustainability Report 2003

This Environmental Sustainability Report is a regular report published by Mitsubishi Motors Corporation (MMC) and Mitsubishi Fuso Truck and Bus Corporation (MFTBC) to keep our stakeholders informed of the environmental impact of our business activities and the various measures being taken to reduce their impact. (In January 2003, MMC spun off its truck and bus division to form MFTBC. However, this report was issued jointly by MMC and MFTBC.)

Corporate Profile (March 31, 2003)

Company name MITSUBISHI MOTORS CORPORATION

Establishment April 22,1970

January 6,2003

Head office (from May 2003) 2-16-4,Konan,Minato-ku,Tokyo 108-8285,Japan TEL:+81-3-6719-4601 (General Affairs Dept.)

Period: This report mainly covers the one-year period from April 1, 2002 to March 31, 2003, i.e. fiscal 2002. Activities ongoing since before this period, changes over time and other data from before fiscal 2001 are also described where necessary. In order to provide upto-date information on the situation up to the publication of this report, some information from after March 2003 is also included.

2-16-4,Konan,Minato-ku,Tokyo 108-8285,Japan TEL:+81-3-6719-2111

Scope: The bulk of this report consists of environment-related information on MMC and MFTBC’s activities in Japan. The environmental impact of all our business activities and our environmental protection activities are described by looking at the impact and activities being undertaken at each stage of the vehicle lifecycle. This report also includes key information on our economic and social activities. Some information is also provided concerning our domestic and overseas affiliates.

2) To develop, design, manufacture, assemble, sell or purchase, export and import and otherwise deal in agricultural machinery and industrial engines, etc., and components thereof and replacement parts and accessories thereof.

To ensure completeness and accessibility to readers, this report was produced following the Japanese Ministry of the Environment’s “Environmental Reporting Guidelines (FY2000 Version)”.

MITSUBISHI FUSO TRUCK & BUS CORPORATION

Asset 252,201million

20,000million

Objectives 1) To develop, design, manufacture, assemble, sell or purchase, export and import and otherwise deal in motor vehicles and components thereof and replacement parts and accessories thereof.

3) To sell or purchase used motor vehicles and components thereof and replacement parts and accessories thereof. 4) To sell test-machines, meters, gauges, etc. 5) To carry out an agent’s business of non-life insurance and insurance conforming to the Automobile Accident Compensation Security Act. 6) To carry out financial services. 7) To carry out any business incidental or relating to any of the foregoing.

1) To develop, design, manufacture, assemble, sell or purchase, export and import and otherwise deal in trucks, buses, commercial vehicles and any other motor vehicles and components thereof and replacement parts and accessories thereof. 2) To develop, design, manufacture, assemble, sell or purchase, export and import and otherwise deal in agricultural machinery and industrial engines, etc., and components thereof and replacement parts and accessories thereof. 3) To sell or purchase used trucks, buses, commercial vehicles and any other motor vehicles, components thereof and replacement parts and accessories thereof. 4) To sell precision machinery, including test-machines, meters, gauges, etc. 5) To carry out an agent’s business of non-life insurance and insurance conforming to the Automobile Accident Compensation Security Act. 6) To carry out financial services. 7) To carry out any business incidental or relating to any of the foregoing.

Employees 13,258

4,307

Turnover (consolidated) 3,885 billion (Passenger car division:

3,161 billion, Truck & bus division:

724 billion)

Homepage address http://www.mitsubishi-motors.co.jp/

http://www.mitsubishi-fuso.com/

Sections corresponding to the Japanese Ministry of the Environment’s “Environmental Reporting Guidelines”

Guideline headings

CONTENTS

Main corresponding pages

Basic headings CEO’s statement

Foundation of reporting

Summary of the nature of the business

PresidentÕs Message Environmental Sustainability Report 2003 Summary Economic Activities

P.2/P.66

Business Policy

Cover.2/P.19/P.57 Questionnaire/ Cover.3/Cover.4 Cover.2/P.4--11/ P.57/P.64--65

Outline of Performance in Fiscal 2002

Summary of policies, targets and achievements in environmental conservation

Activities within Japan Overseas Activities Group Companies

Environmental Activities Environmental Management Environmental Guidelines

Business policies and posture regarding environmental conservation

P.2/P.12/P.66

Summary of policies, targets, and achievements in environmental conservation

P.2--3/P.14--16/ P.66etc.

Environmental Sustainability Plan

Summary of environmental accounting information

P.20--21

ISO14001 Compliance

State of environmental management

Organizational Structure Measures by Affiliates Environmental Auditing Emergency Measures and Environmental Incidents, etc.

P.13/P.17--18/ P.20/P.25

Communication

State of research and development of technologies for environmental conservation and environment-conscious products/services

P.23/P.36--42/ P.45--46/P.48--49

Environmental Accounting

State of disclosure of environmental information and environmental communication

P.19/Questionnaire

[1] Development and Design

State of environmental management system

State of compliance with environmental regulations

P.18/P.29--31/ P.58--63

State of social contribution related to environment

P.19--20/P.53

State of activities for reduction of environmental burden

Internal Education and Personal Improvement

Environmental Activities Measures to Reduce Environmental Impact [2] Procurement [3] Production [4] Logistics [5] Sales [6] Use of Products [7] Recycling

A complete picture of environmental burdens

P.22 /P.25

State of environmental burdens from material/ energy inputs, and mitigation measures

P.26/P.28/P.45/ P.48/P.58--63

State of environmental burdens at the upstream, and mitigation measures

P.24

Making Barrier-Free Products

State of environmental burdens from output of refuse, and mitigation measures

P.26--31/P.58--63

Sports

State of environmental burdens at the downstream, and mitigation measures

P.34--49/P.56

[8] Environmental Protection in the Office

Social Activities Relations with Customers

Contribution to the Local Community Employee-Related Activities

Appendix Environmental Data on New Models

State of environmental burdens from transportation, and mitigation measures State of environmental burdens from cumulative soil contamination, land utilization and other environmental risks, and mitigation measures

P.32--33

Main Business Establishments and Affiliates Plant Report

P.18/P.30--31

Environmental Data of Affiliates

History of Environmental Activities

About MMC/MFTBCÕs Environmental Activities Questionnaire

P.2 P.3 P.4 P.7 P.8 P.10 P.11 P.12 P.13 P.14 P.17 P.17 P.18 P.18 P.19 P.20 P.20 P.23 P.24 P.25 P.32 P.34 P.35 P.43 P.49 P.50 P.52 P.53 P.54 P.55 P.56 P.57 P.58 P.62 P.64 P.66

1

President’s Message

There is now a global consensus that we must move away from a society of mass production, mass consumption and mass disposal to a more sustainable society, if we are to solve the problems of environmental pollution and resource depletion currently facing the world. One essential component for the creation of such a society is the adoption of sustainable management practices that balance economic, environmental and social needs.

reality. In order to reduce the environmental impact (in the form, for example, of energy and resource consumption, and emissions of greenhouse gases and environmental pollutants) of vehicles throughout their live, corporate activities emphasizing environmental sustainability are being steadily pursued in accordance with this action plan. The detailed results of our activities in the first year of the plan in fiscal 2002 are reported in this report (see P.15-16, for example).

Motor vehicles of course play a crucial social role in transportation and logistics in developed countries, and the number of vehicles on the roads in developing countries is also predicted to increase dramatically in the years ahead. In order to prevent the onward global spread of motor vehicles from leading to increased environmental pollution and global warming, or even to a public backlash against the automobile itself, we need to take every possible measure.

MMC is committed to continue implementing the Environmental Sustainability Plan, and we will be actively disclosing information on its progress and results. By steadily fulfilling our mission and realizing our vision, we believe we can demonstrate corporate social responsibility, and contribute to the creation of a sustainable society.

Under the above condition, Mitsubishi Motors Corporation (MMC) has formulated a new corporate “Vision” and “Mission” (see P.4). These define what kind of enterprise we will be and what our goals are, providing the cornerstones of MMC’s future development. Our Vision and Mission also incorporate as basic guiding principles the protection and improvement of the environment, balanced with the need of a mobile society, which we see as two of our most important goals.

Rolf Eckrodt President & CEO Mitsubishi Motors Corporation

The “Environmental Sustainability Plan” is a clear-cut mediumterm action plan drawn up in 2002 for translating the environmental principles embodied in our Vision and Mission into

Mitsubishi Fuso Truck and Bus Corporation (MFTBC) was established by separating the truck and bus operations of MMC on January 6, 2003. The new corporation, however, has the long history of Fuso brand that celebrated its 70th anniversary in 2002.

to maximize the synergy effect in our alliance with DaimlerChrysler. In this way, we will provide our customers with the trucks and buses that are excellent in low emission, fuel efficiency and recycling on top of safety and comfort at reasonable prices.

Trucks and buses, which are the main products of MFTBC, are important transportation methods of both people and goods to support our modern society. On the other hand, it has been called for us to transform the nature of our society from mass production, mass consumption and mass disposal to “sustainability” with efforts such as exhaust gas reduction for better air quality, better fuel efficiency for prevention of global warming and increased recycling ratio for prevention of resource depletion. MFTBC is playing its part and making serious efforts for eco-friendly product manufacturing from production to disposal.

We are committed to make our best in environmental efforts together with MMC in our union under the three diamonds.

MFTBC recognizes that the environmental issue is critical to be recognized as a full-fledged corporation that can contribute to the society. To this extent, we try to expand the mid-term environmental action plan called “Environmental Sustainability Plan”, jointly developed with MMC in 2002, in our own efforts and

2

Wilfried Porth President & CEO Mitsubishi Fuso Truck and Bus Corporation

Environmental Sustainability Report 2003 Summary

Below are the highlights of MMC and MFTBC’s economic, environmental and social activities in fiscal 2002.

Economic Activities Details: P.4-11

Establishment of MFTBC

P.5

MMC’s truck and bus division was spun off in January 2003 to form the newly Mitsubishi Fuso Truck & Bus Corporation (MFTBC).

Performance in fiscal 2002 Consolidated sales rose substantially on the previous fiscal year to profit hit a record high of 37.4 billion.

P.7 3,885 billion, and current

Main new models in fiscal 2002

P.9

The main new models launched were the Colt, Lancer Cargo and Canter.

Environmental Activities Environmental Management

Details: P.12-21

Environmental Activities Measures to Reduce Environmental Impact


P.14

Tangible progress was made in the plan’s first year following its launch in fiscal 2002.

Fiscal 2002 environmental accounting

P. 21

Total environmental protection costs came to 45.2 billion, which is in order to curb and reduce the impact of our activities on the environment.

Energy use at production stage

P.26

Total energy use (in terms of total CO2 emissions) came to 506,000t - CO2, a reduction of 1.7% from the previous fiscal year.

Promotion of spread of LEVs

P.38

The Colt gained U - LEV certification, and approximately 80% of the gasoline vehicles sold in fiscal 2002 (excluding MFTBC models) were LEVs.

Details: P.22-49

Operation of HEV buses

P.40

The Aero Star non - step HEV entered trial operation on ordinary bus routes in June 2002.

Entry of Eclipse EV in Shikoku EV ÒEkidenÓ

P.42

A trial prototype electric vehicle called the Eclipse EV was entered in the event, covering the 815km from MMC’s head office in Tokyo to Niihama in Ehime Prefecture.

Development of partnership with DaimlerChrysler on recycling in Europe

P.44

Agreement was reached with partner DaimlerChrysler regarding collaboration on development of a system for collection of ELVs in Europe.

Development of canister case made from cropped airbag material

P.45

The world’s first canister case made from recycled cropped airbag material was developed jointly with parts and material manufacturers.

Social Activities Details: P.50 - 55

Expansion of ÒNon-Step BusÓ lineup

P.53

The Aero Midi ME, Japan’s first small low - floor bus in the two - meter - width class was launched, completing the lineup of small to large Non - Step Buses.

Third consecutive Paris - Dakar victory

P.54

Hiroshi Masuoka driving the Mitsubishi Pajero Evolution was the overall winner of the Paris - Dakar rally for the second year running in 2003. (This was also the third time in succession and eighth time altogether that MMC has taken the overall crown.)

43

Economic Activities Business policy Outline of performance in fiscal 2002 Activities within Japan Overseas activities Group Companies

Economic Activities

P.4 P.7 P.8 P.10 P.11

Business Policy Vision/Mission of MMC In 2003, MMC has newly created and published our Vision and Mission mentioned below. These define what kind of enterprise we will be and what our goals are, providing

the cornerstones of MMC’s future development. Under the Vision, MMC promises to carry out our Missions.

VISION “We anticipate the automotive lifestyle of a new generation, based on: - Concept leadership & driving fun - Japanese craftsmanship, engineering & design - Environment technologies.”

MISSION - Deliver exciting vehicles and heartfelt services to delight our customers based on future trends - Feature highly profitable business systems with presence in key markets - Establish a globally distinctive “Mitsubishi Motors” brand - Achieve highest quality across whole value chain - Support social & environmental progress by good corporate citizenship

4

Economic Activities

Establishment of MFTBC In January 2003, MMC’s truck and bus business was spun off to create the newly independent Mitsubishi Fuso Truck & Bus Corporation (hereafter referred to as MFTBC). MFTBC’s shareholders are DaimlerChrysler (43%), MMC (42%) and the Mitsubishi Group (15%). As a result, MFTBC will not only enjoy the benefits of economies of scale offered by its partnership with DaimlerChrysler, but also gain access to DaimlerChrysler knowhow and technologies. The main synergies expected to be generated between MFTBC and DaimlerChrysler are as follows:

Progress of Turnaround Plan MMC is currently on the way of implementation of the Turnaround Plan. MMC is a strategic alliance partner with DaimlerChrysler group and the synergy effects by this alliance are expected to help more drastic business turnaround of our company. The Alliance relationship will help to focus our resources on our core business and technology developments that are vital for MMC’s further development. In FY2002, MMC has achieved our profit target in 2002 as the second year of our Turnaround Plan. (see P.7)

- Establishment of a dominant market position in Japan and overseas due to improvements in quality, costs and product strengths - Dramatic reduction of material costs due to the expansion of global purchasing - Dramatic reduction of development costs due to joint development of frames and components and shared investment in advanced technologies (including environmental technologies) - Reduction of costs due to sharing of components - Global complementarity of sales networks

In management efficiencies, we achieved the following targets in fiscal 2002, which was originally planned for 2003: 15% reduction in material costs; 14% reduction in headcount (9,500 persons); and a greater than 20% streamlining of production capacity. Now, we are promoting re-construction of sales organization in Japan, such as improvement of customer services and unification of corporate identity or visual identity of dealers Our business in new market has been launched utilizing DC alliance, in Canada, Mexico, and other counties.


World Engine Global Engine Alliance L.L.C, a joint venture formed by MMC, DaimlerChrysler and Hyundai, will produce new engines at Dundee, Michigan in the United States. It was established in May 2002 as a joint venture to undertake joint design, development and engineering of a new family of four-cylinder gasoline engines. The new engines will be produced initially by Hyundai in Asan in South Korea, and next by MMC in Kyoto, Japan, from the latter half of 2004. Production at the U.S. plant is scheduled to begin in 2005. Total unit output of engines by the three companies is expected to exceed 1,500,000 per year, making it the world’s most widely used engine series.

5

Economic Activities

Development of Safe Vehicles Traffic accidents are a serious problem, causing over one million fatalities and injuries a year. We therefore believe it is an important duty as an automaker to provide safe vehicles to customers. MMC has consequently introduced what it calls “RISE” (Refined Impact Safety Evolution) standards on vehicle construction to ensure that vehicles can withstand collisions from any direction, and vehicles are developed conducting a variety of computer simulations of conditions from the designing stage. After production of a prototype, various collision tests are conducted, such as head-on collisions, offset collisions, side collisions, rear-end collisions, and pole collisions, in order to verify the vehicle’s all-round safety. The results of development work are confirmed using data from the Institute for Traffic Accident Research and Data Analysis (ITARDA), and feedback used to make further improvements to the next development model.

MMC/MFTBC promote to improve safety systems and danger avoidance performance of vehicles in order to prevent traffic accidents. For example, using a unique driving simulator for simulating the driving of actual vehicles, development work is conducted to improve vehicle driving performance.

Driving simulator MMC /MFTBC also make ASV*1 and AHS*2 research models in order to manufacture safe vehicles in the future, and are pursuing R&D into new driver support systems.

Quality Control Under the Turnaround Plan, particular efforts have been made to drastically overhaul quality. The first step consisted of the introduction of the new “Quality Gate” development process control system using DaimlerChrysler know-how. This system consists of a number of “check gates” at each stage from the development planning stage to the production and marketing stages. At each gate strict checks are made, and the next step is not commenced unless all the necessary criteria, including quality standards, have been properly met. This system has been introduced for new and subsequent models launched in 2001. We are also introducing an automatic system to register information from consumers on defects, in order to improve after-sale quality and eliminate variation and omissions due to human factors in such information. In addition, we are developing a database of information on defects in order to speed up and improve the quality of countermeasures taken.

R Hand-Shape Switch *3

In order to make vehicles that are safe and easy to use, R&D on human factors is in progress. For example, MFTBC is working in association with Keio University to develop a hand-shape image analysis system for operating audio and air-conditioning equipment by means of simple gestures. This removes the need to hunt for switches while driving, thus reducing gaze movement and contributing to safe driving. Method of operation

Motion principle

Switch Operation using push switch

Computer simulations of collision Virtual switch

Inputted image

Push

Volume Temperature

Air conditioner/audio

Wind flow

Crash test

Notes

*1 *2 *3 6

: ASV (Advanced Safety Vehicle) Advanced safety vehicle research project being promoted by the Japanese Ministry of Land, Infrastructure and Transport (MLIT). : AHS (Advanced Cruise-Assist Highway Systems) A cruise assist highway system research project also being pursued by MLIT. : Hand-Shape Switch “Hand-Shape Switch” is a Japanese registered trademark of MFTBC.

CCD camera

Economic Activities


Outline of Performance in Fiscal 2002 For fiscal 2002, MMC reports consolidated sales of 3,884.9 billion, increases from one of fiscal 2001. MMC also earned an operating profit of 82.8 billion, ordinary income of 54.3 billion and net income of 37.4 billion. These greatly improved figures are the result of far-reaching reforms implemented under the Turnaround Plan for the purpose of returning the company to sustainable profitability. Sales income for MFTBC and its group companies is fully consolidated in the statements of income March 2003. Starting this fiscal year, MMC’s consolidated overseas subsidiaries changed their book closing date from December 31 to March 31 to synchronize with the parent company’s fiscal year. As a result, MMC’s consolidated financial statements for FY2002 reflect the last 15 months of figures for its overseas consolidated subsidiaries. This accounting change brings a one-time increase in overall net sales of approximately 433.4 billion, and decreases in operating profit by 10 billion, ordinary income by 13.1 billion and net income by 6.5 billion.

(

(

billion)

3,885

4,000

100

82.8

3,613 3,335

3,500

billion)

80

3,277

3,201

60

55.9

3,000

40.2

40

22.5

2,500

20 0

2,000

-20

1,500

- 40 1,000 - 60 500

▲ 73.9

- 80 -100

0 1998

1999

2000

2001

1998

2002

1999

2000

2001

Sales

Operating profit

(consolidated) (

(consolidated)

(

billion)

billion)

100

100

80

80

60

54.3

40

60

37.4

40

11.9

20

2002 (Fiscal year)

(Fiscal year)

20

0

11.3

5.7

0 ▲ 4.2

▲ 3.7

-20

-20

-40

- 40

-60

- 60

-80

▲ 23.3

- 80

▲ 94

▲ 278.1

-100

-100 1998

1999

2000

2001

2002

1998

1999

2000

2001

(Fiscal year)

Ordinary profit (consolidated)

2002 (Fiscal year)

Net income

(consolidated)

7

Economic Activities

Activities within Japan Development and Production

9 13 1 7

9 14

Sakahogi-cho, Kamo-gun, Gifu

11 13 12

(Mizushima Production Dept.)

14 13 12 14 10

5 3

5 6 10 8 5 5 6 2

1

7

2

8

3 4

11 14

5

13 12

9 10

8

6

Economic Activities


Sales

(3) Main new models launched in fiscal 2002

Colt

Lancer Cargo

Canter

9

Economic Activities

Overseas Activities Main Overseas Facilities (consolidated subsidiaries only listed)

Main overseas facilities

Eclipse Spyder (made in North America)

10

Space Star (made in Europe)

Canter (made in Europe)

Economic Activities


Group Companies The MMC group of companies comprises 124 subsidiaries, 25 affiliates and two other associates (as at 31 March 2003). The MMC group is engaged in the development, production and sales of passenger cars and parts for those cars. MMC is responsible for most of the development work. In Japan, Mitsubishi regular and small passenger cars and mini-cars are produced by MMC, with some recreation vehicle models (the Pajero, among others) also being produced by the Pajero Manufacturing Co., Ltd. These automobiles are sold in Japan by Tokyo Mitsubishi Motor Sales Co. and other Mitsubishi Motors sales companies. Mitsubishi Automotive Engineering Co., Ltd. undertakes some of the development of MMC automotive products, Mitsubishi

Production (Japan) Pajero Manufacturing Co., Ltd. Mitsubishi Automotive Bus Manufacturing Co., Ltd. Pabco Co., Ltd. Mitsubishi Automotive Techno-Metal Corporation, etc.

Automotive Logistics Co., Ltd. undertakes the transport of Mitsubishi auto products in Japan, and Mitsubishi Automotive TechnoService Co., Ltd. is responsible for inspection and servicing of certain new Mitsubishi vehicles. Replacement and accessory parts for the Japanese market are manufactured by MMC and are sold by the abovementioned sales companies, by Tokyo Mitsubishi Automotive Parts Sales Co., Ltd. and other parts sales companies. Overseas, in the United States Mitsubishi vehicles are produced and sold by Mitsubishi Motors North America, Inc. In Europe, Mitsubishi vehicles are produced by Netherlands Car B.V. and sold by Mitsubishi Motors Europe B.V. Mitsubishi Motors Australia Ltd. and MMC Sittipol Co., Ltd. (Thailand) are two of the many

facilities that produce and sell Mitsubishi vehicles in local markets in other regions around the world. Auto lease and financing services are provided by Mitsubishi Auto Credit-Lease Corporation in Japan and by Mitsubishi Motors Credit of America, Inc. in the United States. MMC spun-off its truck and bus operations and formed the Mitsubishi Fuso Truck and Bus Corporation (MFTBC), a fully-owned subsidiary, on 1 January 2003. MFTBC became an equity method company of the MMC group on 14 March 2003 when MMC sold 58% of its shareholding.MFTBC and its group companies are mainly engaged in the development, production and sales of trucks and buses.

Engineering & information systems Mitsubishi Automotive Engineering Co., Ltd. MMC Computer Research., Ltd. MMC System Service Co., Ltd, etc.

Other related companies DaimlerChrysler AG. Mitsubishi Heavy Industries, Ltd.

Mitsubishi Motors Corporation Mitsubishi Fuso Truck and Bus Corporation Overseas production & sales

Logistics & other services

Mitsubishi Motors North America, Inc. Mitsubishi Motors Europe B.V. Netherlands Car B.V. MMC Sittipol Co., Ltd. Mitsubishi Motors Australia Ltd, etc.

Mitsubishi Automotive Logistics Co., Ltd. Mitsubishi Automotive Techno-Service Co., Ltd, etc.

Sales (Japan) Tokyo Mitsubishi Motor Sales Tokyo Mitsubishi Fuso Sales Tokyo Mitsubishi Auto Parts, etc.

Auto finance Mitsubishi Auto Credit & Lease Corporation (Japan) Mitsubishi Motors Credit of America, Inc (U.S.)

: Passenger Cars : Trucks / Buses No Mark : Passenger Cars and Trucks / Buses

Finished and semi-finished autos and parts Services, etc.

11

Environmental Activities Environmental Management

Environmental Guidelines Organizational Structure Environmental Sustainability Plan Measures by Affiliates ISO14001 Compliance Environmental Auditing Emergency Measures and Environmental Incidents, etc. Communication Internal Education and Personal Improvement Environmental Accounting

Environmental Activities - Environmental Management

Environmental Guidelines

P. 1 2 P. 1 3 P. 1 4 P. 1 7 P. 1 7 P. 1 8 P. 1 8 P. 1 9 P. 2 0 P. 2 1

In order to clarify group policy on environmental protection, MMC replaced its “Basic Philosophy on the Environment” in August 1999 with the “Environmental Guidelines”. The basic policy affirms environmental protection as a priority and commits us to doing everything in its power to protecting the environment, while the behavioral standards lay down concrete measures for doing so. Our new “Vision” and “Mission” formulated in 2003 (see P.4) incorporate as basic guiding principles the protection and improvement of the environment and symbiosis with society. In order to embody these principles in all the products and services, MMC has clarified the environmental policy as “Environmental Guidelines”, and promoted concrete activities with “Environmental Sustainability Plan” (see P.14).

MFTBC will also be taking action to protect the environment following these same guidelines.

Basic business policy

Vision Mission Social and environmental principles

Policy on environmental protection

Environmental Guidelines

Concrete action plan


MMC/MFTBC ENVIRONMENTAL GUIDELINES Basic Policy MMC /MFTBC recognize that protection of the global environment is a priority for humankind and as such makes the following undertakings: (1) From a global viewpoint, we are committed to continual reduction of negative environmental impact of our corporate activities with all our strength, these including development, procurement, production, sales, and after-sale servicing activities related to automobiles. (2) As a good corporate citizen, we are committed to action to protect the environment at the level of local communities and society as a whole.

Behavioral Standards (1) We will endeavor to protect the environment by forecasting and assessing the environmental impact of our products at all stages in their life cycle. Priority is given to the following areas: Prevention of global warming by reducing emissions of greenhouse gases Prevention of pollution by restricting emissions of substances harmful to the environment Reduction of waste and maximizing efficient use of resources by promoting conservation of resources and recycling. (2) We will endeavor to improve our environment management practices as part of ongoing efforts to ameliorate the environment. (3) We will comply with environment regulations and agreements, and will work to protect the environment by establishing voluntary management targets. (4) We will encourage our affiliates and suppliers, both in Japan and overseas, to cooperate in working to protect the environment. (5) We will actively disclose environment-related information and will seek the understanding of local communities and of society at large.

12

Environmental Activities - Environmental Management ■ ENVIRONMENTAL SUSTAINABILITY REPORT 2003

Organizational Structure Environmental Council MMC has been committed to environmental protection through every aspect of its activities since establishing the Environmental Council chaired by the president in 1993. The Environmental Council meets as a rule once a year to determine basic corporate policy on measures to protect the environment and to consider and determine matters proposed by its various committees. With the spin-off of the truck and bus division in January 2003, the Environmental Council was reorganized as shown below. Environmental Councils were set up at both MMC and MFTBC, and a Product Committee, Production Committee and Environmental Management/Recycling Committee established under each.

The Automobile Recycling Law Task Force set up in August 2001 to coordinate MMC’s response to Automobile Recycling Law in Japan has functioned as a cross-company entity following MFTBC’s spin-off. In 2002, two additional organizations were established under the Environmental Management/Recycling Committee, these being the DfE Promotion Working Group (see P.23) and the Hazardous Substances Control Working Group. Regarding activities in fiscal 2002, measures were pursued in accordance with the company-wide Environmental Sustainability Plan drawn up last year based on traditional arrangements, and periodical follow-up surveys made of the state of progress by the Environmental & Technical Affairs Department, which comprises the secretariat.

Dedicated Environmental Organization Environmental Affairs Department was established in May 1999 to take overall responsibility for environmental activities throughout the company. (In April 2000, the department’s staffing was boosted and it was renamed Environmental & Technical Affairs Department.) The department’s main functions are to plan the strategy of MMC’s environmental activities and to act as a secretariat for the Environmental Council. In November 2001, the post of Environmental Officer was made a full-time position, and activities stepped up. In order to speed up action on recycling legislation in Japan and overseas, a Recycling Promotion Office was in addition established in March 2002. In MFTBC, Technical Administration Department acts as a secretariat for the Environmental Council.

(By the end of 2002)

Environmental Council Automobile Recycling Law Task Force

Truck/Bus Product Committee

Car Product Committee

Production Committee

Environmental Management/ Recycling Committee

(Since January 2003)

MMC

MFTBC

Environmental Council

Environmental Council Automobile Recycling Law Task Force

Product Committee



Product Committee



Main activities of each committee Product Committee : improvement of fuel efficiency, reduction of exhaust emissions, development of clean energy vehicles, improvement of traffic flow, etc. Production Committee : reduction of waste and resource conservation at the production stage, prevention of global warming at the production and distribution stages, reduction of use and emission of hazardous substances at the production stage, etc. Environmental Management/Recycling Committee : design for environment (DfE), collaboration with suppliers and dealers, promotion of vehicle recycling, etc.

13


Environmental Sustainability Plan MMC and MFTBC are pursuing environmental protection in accordance with a five-year medium-term environmental action plan beginning in fiscal 2002 called the Environmental Sustainability Plan. The plan sets concrete targets in four fields -environmental management, recycling, prevention of global warming, and prevention of environmental pollution-- and specifies as far as possible the means and timescale for their attainment. At Environmental Council in March 2003, this plan was partially revised taking into account activity outcomes and changes in social trends, and split into MMC’s and MFTBC’s.

The main revisions are as follows: - Completion of “Establishment of arrangements for DfE” and adoption of “Application of DfE”. - Regarding “Promotion of R&D on fuel cell vehicles (FCVs)”, adoption of “Participation in Japan Hydrogen & Fuel Cell demonstration Project (JHFC) subsidized by Ministry of Economy, Trade and Industry (METI)” - Regarding “High fuel efficiency/ultra low emission vehicles (approved for government use)”, “at least 85% of registered vehicles and 70% of mini-cars” was adopted as new target for fiscal 2005.

-Regarding “Use of lead-free paint for electrodeposition coating”, completion of switch to use of lead-free electrodeposition paint on all passenger car paint lines and adoption of “Use of lead-free paint on domestic truck electrodeposition paint lines”. -Regarding “Reduction of VOC emissions”, adoption of “Reduction of VOC use on truck paint lines to 20g/m2 or less by changing paints (by end 2005)” -Regarding “Reduction of dioxin emissions”, attainment of target of reducing dioxin emissions to one tenth of emission limit and maintenance at this level.

(1) Environmental management Category

Item

Target

DfE

Application of DfE

Pursuit of implementation of DfE process

MMC

Cooperation with suppliers (green procurement)

Promotion of acquisition of ISO14001 certification

Promotion of acquisition of ISO14001 certification by all suppliers (by end FY 2004)

MMC MFTBC

Cooperation with dealers

Support for introduction of environmental management systems by dealers

Establishment and operation of environmental management systems by all dealers

MMC MFTBC


Expansion of the acquisition of ISO 14001 certification at domestic and overseas plants, and promotion of the environmental activities as well as MMC and MFTBC, which had acquired it at all plants in Japan

MMC MFTBC

Cooperation with domestic production affiliates

Enhancement of “Environmental Sustainability Plan” and promotion of the certain action by MMC/MFTBC Group Plant Environment Liason Council (twice a year)

MMC MFTBC

Cooperation with overseas production affiliates

Regular monitoring of state of compliance with official regulations and regulatory trends (twice per year) Action to protect the environment in accordance with the demands of societies in host countries Strengthening of collaboration on environmental and recycling issue at International Production Conference with major affiliates

MMC MFTBC

Disclosure of environmental information

Regular publication and improvement of environmental reports Improved disclosure of information via the Internet

MMC MFTBC

(Design for Environment)

Collaboration with domestic and overseas production affiliates

Disclosure

(2) Recycling Category

Item

Target Activities for achieving 95% recycling rate

Promotion of vehicle recycling

Reduction of waste emissions and improved resource conservation at production stage

14

Compliance with Japanese and EU legislation on vehicle recycling/ improvement of recyclability/reduction of use of hazardous substances

1) Active involvement in development of recycling systems through collaboration with central and local governments and other related entities Development of network for collection of End-of-life vehicle (ELV)s through collaboration with related companies such as DaimlerChrysler in the EU 2) Promotion of easily recyclable products (Development of recyclable materials, design of easily recyclable constructions, expansion of use of recycled materials) 3) Reduced use of hazardous substances (lead, mercury, hexavalent chromium, cadmium, etc.)

MMC MFTBC

Zero emissions of landfill waste

Maintenance of zero emissions of landfill waste at all plants (achieved in FY 2001)

MMC MFTBC

Promotion of recycling

At least 98% recycling of waste (by end FY 2005)

MMC MFTBC

Reduction of emissions of byproducts

Reduction of metal scrap and waste casting sand

MMC MFTBC

Effective use of water resources

Reduction of water use through greater recycling, etc.

MMC MFTBC


(3) Prevention of global warming Category Improvement of vehicle fuel efficiency Reduction of use of air conditioner refrigerant

Production and logistics Improvement of traffic flow

Target

Item Compliance with new domestic fuel efficiency standards

Early attainment of new domestic fuel efficiency standards for 2010 (by FY2005)

MMC

Attainment of self-targets for EU fuel efficiency

Steady action to achieve self-targets for EU fuel efficiency in 2009

MMC

Improvement of truck and bus fuel efficiency

Further improvements in fuel efficiency

MFTBC

Reduction of use of HFC134a

Expansion of use of air conditioning systems using less refrigerant

MMC MFTBC

Promotion of development of HFC134a-free air conditioners

Promotion of development of CO2 refrigerant (jointly with airconditioning equipment manufacturers)

MMC MFTBC

Reduction of emissions of CO2 (energy conservation at plants)

Reduction of CO2 emissions by at least 20% compared with FY1990 (by end FY2010)

MMC MFTBC

Reduction of CO2 emissions at logistics stage

Reduction of CO2 emissions per unit shipped by at least 10% compared with FY2000 by improving transportation efficiency (by end FY2005)

MMC MFTBC

Reduction of packaging and packing materials

Reduction by at least 15% compared with FY2000 in use of wooden cases per knockdown unit sold (by end FY2005)

MMC MFTBC

Improvement of transport environment through use of ITS technology

Promotion of R&D and diffusion of ITS in-car equipment

MMC

(4) Prevention of environmental pollution Category

Target

Item

Continuation of research and application of technologies with DaimlerChrysler Participation in Japan Hydrogen & Fuel Cell demonstration Project (JHFC) subsidized by Ministry of Economy, Trade and Industry (METI)

MMC

Development and launch of compressed natural gas vehicles (CNGVs) and hybrid electric vehicles (HEVs)

MMC

Launch of Large bus HEV

MFTBC

At least 85% of domestically registered vehicle sales from FY2005 to be LEVs approved for government use (high fuel efficiency + U-LEVs) At least 80% of domestically registered vehicle sales from FY2003 to be Green Purchasing Law compliant At least 70% of domestically registered mini-car sales from FY2005 to be LEVs approved for government use (high fuel efficiency + U-LEVs)

MMC

Compliance with Japanese and overseas exhaust emission regulations

Timely release of vehicles compliant with exhaust emission regulations

MMC MFTBC

Development of low emission gasoline trucks

MFTBC

Use of lead-free paint for electrodeposition coating

Elimination of use of lead paints on domestic truck electrodeposition paint lines (by end FY 2004)

MFTBC

Reduction of VOC use on passenger car paint lines to 35g/m2 or less through adoption of waterborne paints (by end 2007)

MMC

Reduction of VOC use on truck paint lines to 20g/m or less by changing paints (by end 2005)

MFTBC

Maintenance of dioxin emissions from waste incinerators at the level of 10% or less of allowed limit

MMC

Promotion of R&D on fuel cell vehicles (FCVs)

Market launch of clean energy vehicles

Development and propagation of low emission vehicles, etc.

Reduction of use of hazardous substances at production stage

Expansion of high fuel efficiency low emission vehicles (LEVs)

Reduction of VOC emissions 2

Reduction of dioxin emissions

Targets and Performance in Fiscal 2002 (1) Environmental management Category DfE

(Design for Environment)

Cooperation with suppliers (green procurement)

Cooperation with dealers

Collaboration with domestic and overseas production affiliates

Disclosure

：Achieved

Item

Targets in FY 2002

：Partially achieved

Performance in FY 2002

：Not achieved

Assessment Related page

Establishment of arrangements for DfE

Establishment of development process to effectively reduce the environmental impact throughout the lifecycle of products

Completed

P.23


Promotion of acquisition of ISO14001 certification by all suppliers

59% acquisition rate achieved (304 of 512 suppliers)

P.24

Support for introduction of environmental management systems by dealers

Establishment and operation of environmental management systems by dealers

MMC: revised the promotion plan, and incorporated the construction of environmental management systems with “Dealer Standards” MFTBC: promoting establishment of environmental management systems

P.34


Expansion of ISO14001 certified operations

Acquired by Mitsubishi Automotive Techno-Metal in March 2003 Acquired by MMAL in March 2003

P.17

Cooperation with domestic production affiliates

Enhancement of “Environmental Sustainability Plan” and promotion of the certain action

Publicizing and implementation through “Group Plant Environmental Liaison Council” (twice a year) and “Plant Environment Topics”

P.17

Cooperation with overseas production affiliates

Strengthening of collaboration with main overseas plants

Strengthening of collaboration through follow-up surveys of state of measures, etc.

P.17

Disclosure of environmental information

Regular publication and improvement of environmental reports Improved disclosure of information via the Internet

Simultaneous release in English and Japanese in October 2002 Public announcement of “Environmental Sustainability Plan”

P.19

15


(2) Recycling

：Achieved

Category

Promotion of vehicle recycling

Reduction of waste emissions and improved resource conservation at production stage

Item

Targets in FY 2002

：Partially achieved


：Not achieved

Assessment

Related page

Promotion of collaboration with DaimlerChrysler for development of network for collection of End-of-life vehicle (ELV)s in the EU

Entered into contract in December 2002

Achievement of the target of recyclability rates (achieve at least 90% since FY 2000)

Achieved by new models (Colt, Lancer Cargo, Canter)

Prior assessment of recyclability

Prior assessment of recyclability of models developed in FY2002 in accordance with recycling design guidelines

Promotion of recycling waste materials produced in other industries

Use of recycled materials for Air-cleaner case made from recycled PP and waste paper etc.

Increase in collection number of replaced bumpers for recycling

A total of 73,520 replaced bumpers collected from dealers around the country (130 bumpers per a month increase from FY2001)

Zero emissions of landfill waste

Maintenance of zero emissions of landfill waste at all plants (achieved in FY 2001)

Maintenance of zero landfill waste emissions

P.27

Promotion of recycling

Improvement of waste resource recovery rate (achieve 98% or more by end of FY2005)

99.4% waste resource recovery rate

P.28

Reduction of emissions of byproducts

Reduction of metal scrap and waste casting sand

7.5%volume per sales amount reduction from FY2001

P.28

Effective use of water resources

Reduction of water use through greater recycling, etc.

14% water use reduction from FY2001

P.28

Compliance with Japanese and EU legislation on vehicle recycling/improvement of recyclability/reduction of use of hazardous substances

P.43 -- 49

(3) Prevention of global warming Category

Improvement of vehicle fuel efficiency

Reduction of use of air conditioner refrigerant

Production and logistics

Improvement of traffic flow

Item

Targets in FY 2002


Assessment

Related page

Compliance with new domestic fuel efficiency standards

Pursuit of measures to enable early achievement of 2010 standard by 2005

Increase of achieved vehicles by new models (Colt, Lancer Cargo)

P.35 -- 36

Attainment of self-targets for EU fuel efficiency

Steady action to achieve self-targets for EU fuel efficiency in 2009

Development of high fuel efficiency technologies (improvement of engines and drive systems, reduction of weight, etc.)

P.35 -- 36

Truck and bus measures

Development of high fuel efficiency components

Development of aluminum frames Promotion of expansion of lineup of vehicles fitted with idling prevention systems as standard and INOMAT vehicles

P.36 -- 37

Reduction of use of HFC134a

Use of air conditioners using less refrigerant in new models

Use in new models (Colt, Lancer Cargo, Canter)

P.37

Promotion of development HFC 134a-free air conditioners

Promotion of development of CO2 refrigerant air conditioners

Under joint development with airconditioning equipment manufacturers

P.37

Reduction of emissions of CO2 (energy conservation at plants)

CO2 emissions: 543,000t-CO2

506,000t-CO 2

P.26

Reduction of CO2 emissions at logistics stage

Reduction of CO2 emissions per unit shipped by improving transportation efficiency (at least 10% compared with FY2000 by end of FY2005)

Passenger Cars: 1.4% reduction from previous fiscal year (44.4kg-CO2/vehicle) Trucks: 3.0% reduction from previous fiscal year (45.3kg-CO2/ vehicle)

P.32 -- 33

Reduction of packaging and packing materials

Reduction in use of wooden cases per knockdown unit sold (at least 15% compared with FY2000 by end of FY2005)

Introduction of returnable racks/boxes for replacement parts on U.K., Swiss and Austrian routes

P.33

Improvement of transport environment through use of ITS technology

Promotion of R&D and diffusion of ITS in-car equipment

Increase in vehicles with ETC and car navigation systems and development of commercial ITS additional functions

P.42

(4) Prevention of environmental pollution Category 分類

項 Item 目 Promotion of R&D on fuel cell vehicles (FCVs)

Market launch of clean energy vehicles

Development and propagation of low emission vehicles, etc.

Expansion of use of high fuel efficiency low emission vehicles (LEVs)

Compliance with Japanese and overseas exhaust emission regulations

Reduction of use of hazardous substances at production stage

16

Use of lead-free paint for electrodeposition coating Reduction of VOC emissions Reduction of dioxin emissions

Targets 2002年度 in FY目標 2002

Performance 2002年度in実績 FY 2002

Assessment 評価

Related 参照項 page

Continuation of research with DaimlerChrysler

Establishment of cooperation system with DaimlerChrysler and promotion of research

P.40

Promotion of development of EVs, hybrid vehicles and CNG vehicles, etc.

Continuation of development of EV component technologies and entry of EV in Shikoku EV Week 2002 Development of small HEV truck and exhibition at Tokyo Motor Show Entry into market for medium truck and small bus CNG vehicles

P.40 -- 42

Increase in proportion of registered vehicles sold domestically approved as LEVs for government use (high fuel efficiency + U-LEVs)

33.5% proportion of LEVs approved for government use

Increase in proportion of registered vehicles sold domestically covered by Green Purchasing Law

53% proportion of vehicles covered by Green Purchasing Law

Increase in proportion of mini-cars sold domestically covered by Green Purchasing Law

24% proportion of mini-cars covered by Green Purchasing Law

Increase in proportion of U-LEVs in registered vehicle sales of domestic gasoline passenger cars

33.5% proportion of U-LEVs

Timely introduction of vehicles compliant with standards

Market launch of vehicles with Canter small engines and Aero Star large engines complied with the 8LG LEV Introduction of small, medium and large trucks for Australian market

Elimination of lead use on domestic passenger car electrodeposition paint lines

Implemented on all passenger car lines

P.31

Promoting of construction of new paint factory using water-based paints at Mizushima Plant

P.29

Target attained through appropriate management of incinerators(0.4ng-TEQ/m3N)

P.29

● Preparation of introduce water-based paints No more than dioxin emission concentration target of 1ng-TEQ/m3N (10% of limit)

P.41

P.38 -- 39


Measures by Affiliates Collaboration with Domestic Affiliates The Mitsubishi Motors Group Plant Environment Liaison Council meets twice a year, bringing together MMC/MFTBC’s five main production affiliates to promote environmental measures on a par with those taken by MMC/MFTBC and to actively share information. In fiscal 2002, mid-term environmental action plans were drawn up for each company. The newsletter entitled “Plant Environment Topics” is published twice a year for distribution to 100 suppliers to keep them abreast of legislative developments and other trends. Passenger cars

ISO 14001 Compliance Collaboration with Overseas Plants The Production Committee of the Environmental Council (see P.14) conducts regular (twice yearly) follow-up surveys of the state of environmental protection at the main plants overseas. In the future, environmental activities will be promoted from a more global perspective by, among other things, holding meetings of environmental managers from these plants.

Energy use Environmental standards and emissions Information on overseas plants surveyed

Establishment of specific facilities Waste disposal Logistics-related matters Laws and regulations State of ISO14001 compliance

In order to ensure the transparency and reliability of their environmental activities, all MMC/MFTBC’s domestic plants have acquired ISO14001 certification, which is the international standard for environmental management systems, as shown below. In December 2002, MFTBC acquired an ISO14001 certification for environmental management systems in R&D processes, when an ISO14001 renewal audit was made of the production operations in Kawasaki Plant. MMC/MFTBC’s main affiliates in Japan and overseas are also pushing ahead with acquiring the certification, and those still without certification aim to acquire certification during fiscal 2003.

Trucks and buses

Mitsubishi Automotive Bus Manufacturing Co., Ltd. Mizushima Industries Co., Ltd.

Mitsubishi Automotive Techno-Metal Corporation

MTE ( Portugal ) NedCar ( Netherlands )

Pabco Co., Ltd. Pajero Manufacturing Co., Ltd.

Main Domestic Affiliated Plants

MSC ( Thailand ) MMNA ( USA )

ATC ( Philippines ) MMPC ( Philippines )

State of ISO14001 compliance

MMC/MFTBC

MMAL ( Australia ) Main Plants Overseas

Environmental Reports of Affiliates Affiliates such as Mitsubishi Automobile Engineering, Pajero Manufacturing and NedCar (Netherlands) produce their own environmental reports to actively provide information on their environmental measures.

Domestic affiliates

Overseas affiliates

Plant Environment Topics

● Nagoya Plant Nov. 1998 ● Kyoto Plant (now Powertrain Plant) Nov. 1998 ● Mizushima Plant Dec. 1998 ● Tokyo Plant (now MFTBC Kawasaki Plant) Dec. 1999 ● Truck & Bus R&D Office (now MFTBC R&D Office) Dec. 2002 ● Pajero Manufacturing Co., Ltd. July 1999 ● Mitsubishi Automotive Engineering Co., Ltd. Feb. 2000 ● Pabco Co., Ltd. June 2000 ● Mizushima Industries Co., Ltd. Oct. 2001 ● Mitsubishi Automotive Techno-Metal Corporation Mar. 2003 ●NedCar (Netherlands) Sep. 1999 ● ATC (Philippines) Oct. 2000 ● MMMA (USA, now MMNA) Mar. 2001 ● MSC (Thailand) June 2001 ● MMPC (Philippines) July 2001 ● MTE (Portugal) Feb. 2002 ● MMAL (Australia) Mar. 2003

NedCar’s environmental report

17


Emergency Measures and Environmental Incidents, etc.

Environmental Auditing In order to confirm that environmental management systems are functioning effectively and so maintain and improve their operation, each of MMC/MFTBC’s plants is audited internally by themselves at least once a year and also examined once a year by an outside third party. The internal audit consists of a check sheet of 600-700 items, which are checked by qualified internal auditors who have undergone internal and external training under the internal auditor license scheme. Non-conformances are checked and reviewed by the senior officer, and appropriate corrective action is taken.

Arrangements are also in place for adoption by other divisions when measures being taken by a particular division are found to be especially effective. External auditing of each of the plants in fiscal 2002 resulted in no major nonconformance, one minor non-conformance and 11 observations. Overall, environmental management systems were found to be being operated and maintained properly. Regarding minor non-conformances, systems will be immediately rectified and efforts continued to ensure that systems are operated at a higher level.

Incidents In fiscal 2002, there were no environmental incidents.

Review

Organization (plant)

Senior officer (Plant general manager) Audit instructions

Report of findings

Environmental officer (Senior executive) Report of findings

Audit instructions

ISO secretariat Preparation of auditing plan Instructions on points for auditing

Findings compiled Announcement of practices for wider introduction

Audit instructions

Audit team

Report of findings

Audit team

Audit team

Department A

Audit team

Department B

Department C

Department D

Department under inspection System of internal environmental auditing of plants

18

Audit team

Confirmation of corrective measures

Audit

Emergency Measures MMC/MFTBC constantly strive to maintain the safety and stability of production operations at its plants in line with appropriate operational and work standards to ensure safety and reduce the impact of its activities on the environment. In order to cope in the best possible way with natural disasters such as earthquakes and emergency situations that may foreseeably arise during everyday operations, the company has established guidelines to be followed in an emergency, and in addition conducts regular training exercises.

Department E

Complaints There were 14 complaints by residents in fiscal 2002. Most of them were concerned, for example, noises and smells. In such cases, we strive to identify the cause so as to take appropriate countermeasures. In some cases, however, causal relationships need to be investigated, and monitoring is continued through, among other things, regular patrols of plant environments. Legal Action A lower court ruling was made on October 29, 2002 regarding the Tokyo Air Pollution Case, an environmental lawsuit concerning automobile exhaust emissions, but it was appealed and the case continues. Environment-related Recalls Three of the recalls reported to the Ministry of Land, Infrastructure and Transport in fiscal 2002 were environment related. These consisted of the malfunctioning of exhaust gas emission controller oxygen sensors in Lancers produced between January 7, 1998 and April 3, 2002 (32,000 vehicles), malfunctioning of the fuel gas injection volume control device of Canter refuse trucks vehicles produced between June 16, 1999 and February 26, 2002 (88 vehicles), and malfunctioning of the motor supercharger of Super Greats and Aero Stars produced between January 29, 2000 and November 21, 2002 (6,611 vehicles). All were dealt with by replacing the affected parts.


Communication MMC/MFTBC are striving to enhance their environmental communication, primarily by publishing environmental reports and publishing information on their websites. Publication of Environmental Reports MMC/MFTBC’s environmental reports are published in two languages---Japanese and English---both as pamphlets and as online publications accessible internally and externally via the company’s intranet and internet website. Since first published in September 1999, they have been published annually, and this year’s report is the fifth. (The next report is scheduled to be published around the summer of 2004.) 1st issue 2nd issue 3rd issue 4th issue 5th issue

(1999) (2000) (2001) (2002) (2003)

Provision of Information via the Internet In order to widely publicize our environmental activities both within and outside the company, we have established a website called “MMC’s Environmental Activities”. This brings together a variety of environment-related information, including all past editions of environmental reports and the above environmental information on individual vehicle models. In June 2002, the site was redesigned to make it more accessible, and an “Environmental Sustainability Plan”(see P.14) page was added.

September 1999 August 2000 September 2001 October 2002 July 2003

Cooperation in External Events In order to publicize and encourage the spread of low pollution vehicles, MMC/MFTBC exhibits low emission vehicles of various kinds at exhibitions and fairs throughout Japan. In fiscal 2002, MMC/MFTBC participated in the following events. Main events attended in fiscal 2002

Provision of Environmental Information on Individual Models In order to promote green purchasing*1 within and outside the company, MMC/MFTBC participate in the Green Purchasing Network (GPN)*2. Among the activities targeted outside the company, we provide environmental information on main models (regarding, for example, fuel efficiency, exhaust emissions and recycling) by means of the GPN’s publications and homepage and on MMC/MFTBC’s own homepage in order to assist prospective car buyers make green purchasing decisions.(For details of green purchasing within the company, see P.49)

Environmental homepage (http://www.mitsubishi-motors.co.jp/ECO-E/)

MFTBC has a similar website which it uses to explain in accessible language the regulations and systems for trucks and buses.

Outline and effects of truck and bus environmental regulations (http://www.mitsubishi-fuso.com/jp/kisei/)

Up-to-the-minute environmental information that cannot be covered in this report is reported whenever necessary through press releases for the media and via our website.

Date

Region

Eco-Car World 2002

Ministry of the 6/1∼ 2 Environment, etc.

Automotive Engineering Exposition “People and Auto Technology Fair 2002”

Society of Automotive Engineers of Japan (JSAE)

7/23∼25

Yokohama

Shikoku EV Week 2002 (Shikoku EV “Ekiden”)

Shikoku EV Challenge 2000 Committee

8/22∼23

TokyoEhime

LEV Fair Nagoya 2002

Nagoya City, etc. 9/21∼ 22

Aichi

15th LEV Fair in Osaka

Osaka City, etc. 10/16 ∼19

Osaka

2002 Asahi Solar Car Rally in Kobe

Asahi Shimbun, 10/12∼13 etc.

Hyogo

Eco-Car Festa in Hachioji

Tokyo Hachioji Takao Lions 10/20 Club

Tokyo

LEV Test Drive Event (Odawara)

Odawara City, etc.

8th Japan EV Festival

Japan EV Club 11/4

Ibaraki

Natural Gas Vehicle Show 2002

Japan Gas 11/13∼15 Association, etc.

Tokyo

Osaka LEV Fair 2002

Osaka Prefecture

11/22∼23

Osaka

Nagoya International Conference on Environmentally Sustainable Transport (EST Nagoya Conference)

OECD, etc.

3/23∼25

Aichi

Publication of past environmental reports

Our environmental reports include questionnaires, the responses to which are used to improve the content of future issues. Since the 2002 edition, it is also now possible to order copies (Japanese version ) via our website.

Organizers

10/20

Tokyo

Kanagawa

EST Nagoya Conference

Our cooperation in external events also includes the provision of panelists and speakers for forums and symposiums organized by various organizations.

Notes

*1: Green purchasing

Preferential purchasing of environmentally friendlier products and services by businesses to reduce the impact on the environment, taking into full consideration purchasing needs and environmental factors as well as price and quality.

*2: Green Purchasing Network

An organization formed in 1996 by a number of companies, government agencies and private-sector bodies to promote green purchasing. Among its activities are the production of guidebooks providing information and guidelines on green purchasing.

19


Internal Education and Personal Improvement In order to make each and every employee fully understand trends in environmental issues and to raise awareness of environmental protection, a variety of educational and personal improvement activities are undertaken.

Internal environmental inspectors (see P.18) receive education and training inside and outside the company, and are qualified as environmental auditors. “Environment Month” Activities Every June, designated “Environment Month” by the Japanese Ministry of the Environment, a variety of awareness raising activities is undertaken, and during this time MMC/MFTBC organize the following activities to raise environmental awareness within the company. Type of activity

Personal development

Education of Employees of All Levels Educational activities are organized for employees of all levels. At the center of such activity are environmental departments, such as ISO Secretariats (see P.18). Education also continues to be provided for mid-level sales and service employees at dealers by staff of Environmental & Technical Affairs Dept. (see P.13)

Environmental Accounting

Details 1. Internal PR regarding Environment Month activities(Publication in the company newsletter and on the intranet of related articles, posting of posters and signboards) 2. Organization of briefings on environmental guidelines by environmental officers and the Environmental Council Secretariat (from fiscal 2002) 3. Participation in Environment Month symposiums

Promotion of Acquisition of Internal and External Environment-Related Qualifications MMC/MFTBC encourages employees to gain official environmental-related qualifications. The table below shows how many employees currently hold such qualifications. Category

Other activities

Environment education for new employees

Practical activities

4. Environment Month poster competition 5. Slogans invited 1. Inspection patrols at environmental facilities and environmental testing 2. Inspection of state of management of waste disposal and treatment contractors 3. Voluntary community cleanup activities (participation in local cleanup activities, etc.) 4. Campaign to eliminate littering 1. Inspection of greenery at sites and planting of commemorative trees 2. Participation in events organized by various organizations 3. Donation to nearby elementary schools of colored carp raised in factory effluent

Total (no. of employees)

Chief Air

6 35

Pollution control manager

Dioxins Noise and vibration

32

Energy manager

Heat Electricity

23

Water quality

6 46

23

MMC has also introduced its own qualification systems at some of its operations. At the Nagoya Plant, for example, the “Waste Paper Recycling Qualification System” has been launched as part of efforts to eliminate landfill waste emissions (see P.27)

Briefing on environmental guidelines by environmental officer (for managers)

Promotion of Idling Prevention Activities We instruct employees to prevent idling of vehicles when not in motion, and request to suppliers and customers.

Notes

*1: MOE Environmental Accounting Guidelines

The terms and table classifications used in this chapter are based on 2002 version of the guidelines.

20

When undertaking activities to protect the environment, in order to analyze and assess these activities, it is important to determine that appropriate spending is allocated to each activity and what effects are obtained. By introducing environmental accounting, MMC/MFTBC aim to further improve the sophistication and efficiency of their environmental protection activities. Approach to Environmental Accounting As for environmental accounting, there do not exist any common standards regarding the scope and calculation of effects as in the case of financial accounting. For this reason, individual companies and organizations are developing their own methods of accounting by a process of trial and error. Since publication of the 1999 Environmental Report (first version), MMC has published environmental accounting data. The data is compiled and published based on the Ministry of the Environment (MOE) Environmental Accounting Guidelines *1. The data are calculated for MMC and MFTBC, and cover the period from April 2002 to March 2003.


Environmental Accounting in FY2002 (1) Environmental protection cost Costs relating to activities serving to curb and reduce the impact on the environment were calculated focusing principally on the cost of waste disposal and energy conservation measures at plants and the cost of R&D in the R&D division. The environment-related portion of combined costs−i.e. spending on activities designed to meet other objectives as well as protection of the environment−was calculated by differential costing (i.e. the deduction of costs not relating to environmental protection from the total). Where this was not possible, costs were calculated by estimating the proportion

Category*1

Passenger car

Break down

Truck & bus

Total

3,421

1,059

4,479

104.0%

(437)

(1,940)

(91.7%)

(58)

(37)

(95)

(79.2%)

(1,860)

(585)

(2,444)

(118.1%)

(2) Upstream/downstream costs*

---

---

103

73.6%

(3) Management activity costs*

---

---

1,165

104.7%

39,247

100.0%

(4) R&D costs

11,359

27,887

(5) Social activity costs*

---

---

132

84.3%

(6) Environmental damage costs*

---

---

37

76.1%

45,164

100.4%

Total

12,631

32,532

(3) Economic benefits accompanying environmental protection measures*3 The economic benefits accompanying environmental protection measures are shown in the table . From this it can be seen that a reduction in various costs was achieved in comparison with the previous fiscal year. The above comprise only a tiny portion of the economic benefits, and effects are likely to be found in a wide range of other fields. Like last year, however, we wish to keep this report as objective as possible, and so have not included data on economic benefits that are based on conjecture. For example, environmental measures may also yield benefits in the form of reduced environmental risks, but it is no possible at this stage to put an exact figure on these benefits. (

YOY % change

(1,503)

Protection of the global environment

Resource recycling

(2) Environmental protection effects*2 The principal quantitative data used as indices of environmental protection effects are shown in the table . For data not shown in the table, please refer to the relevant pages in this report. Value ( million)

(1) Business area costs Pollution prevention

contributing to environmental protection. As an automaker, we place a strong priority on reducing the environmental impact of products themselves and on taking steps to protect the environment at the production stage, and the cost of these and related activities comprise the majority of the cost of environmental protection (R&D costs account for approximately 87% and business area costs for approximately 10). Total costs are equivalent to 2.2% of sales.

42

billion)

45

45.2

2001

2002

41.4 38

1998

1999

2000

(FY)

Change in total cost of environmental protection Environmental damage costs 0.1%

Business area costs 9.9% Upstream/ downstream costs 0.2%

Social activity costs 0.3% R&D costs 86.9%

Management activity costs 2.6%

:Only total value is entered because most of costs are common between passenger car and truck / bus.

*Environmental protection effects

Breakdown of environmental protection costs

Category

Item

Effects relating to inputs into business activities

- Energy consumption in production process (total CO2 emission) - Water use

Effects relating to environmental impact and waste resulting from business activities

- Quantity of waste for final disposal

Effects relating to goods and services produced by business activities Effects relating to transportation, etc.

- Average fuel efficiency by vehicle weight category

(gasoline passenger cars and commercial vehicles) - Number of old bumpers collected

- CO2 emissions during domestic transportation of BU vehicles

YOY% change

Related page

98.3% 86.4%

P.26 P.28

100t

9.1%

P.27-28

--73,500

--102.2%

P.35 P.48

15,200t-CO 2 83.3% 3,000t-CO 2 103.2%

P.32

FY2002

(passenger cars) (trucks)

Environmental protection effects

506,000tCO 2 6,004,000m 3

Item

Reduction of energy costs

Value ( million)

1,544

Reduction of waste disposal costs

Reduction of the cost of purchase of water

5

63

Economic benefits accompanying environmental protection measures

Notes

*1: Main categories of environmental protection costs

(1) Costs on energy conservation, saving resources, and waste disposal, etc. at each plant. (2) Costs on collection of used parts, etc. (3) Costs on ISO14001 certification and employee education concerning the environment, etc. (4) Costs on R&D related to improving fuel efficiency, reducing exhaust emissions, development of clean energy vehicles, and recycling, etc. (5) Costs on donations and membership fees paid to external environmental organizations, etc. (6) Costs on taxes and other charges paid to national and local governments, etc.

*2: Environmental protection effects *3: Economic benefits accompanying environmental protection measures

Defined by MOE guidelines as “the quantitative impact on the environment of an organization’s operating activities and the increase or decrease therein”. Defined by MOE guidelines as “the returns and the reduction and avoidance of costs to an organization arising from its environmental protection activities”.

21

Environmental Activities

Environmental Activities - Measures to Reduce Environmental Impact

Measures to Reduce Environmental Impact

[1] Development and Design [2] Procurement [3] Production [4] Logistics [5] Sales [6] Use of Products [7] Recycling [8] Environmental Protection in the Office

P. 2 3 P. 2 4 P. 2 5 P. 3 2 P. 3 4 P. 3 5 P. 4 3 P. 4 9

Vehicles impact on the environment in a variety of ways throughout their lifecycle. The diagram below shows the vehicle lifecycle and the main inputs (of energy, etc.) and outputs (emissions into the environment) generated as a result of MMC/MFTBC’s business activities and the use of vehicles. Of the total impact on the environment of automobiles throughout

[1]

Development and design

the lifecycle, most occurs at the production and use stages. However, MMC/MFTBC are taking steps to reduce the environmental impact at these and every other stage of the vehicle lifecycle. In the following pages, we describe the environmental impact at each stage of the lifecycle and the concrete steps being taken to reduce this impact.

P.23

Procurement

[2]

P.24

Parts, materials, etc.

[3]

Production

CO2,SOx,NOx,VOC wastewater, noise, chemicals, industrial waste, etc.

P.25

Parts and materials

Vehicles, parts, etc.

(Particular focus on recycling and reduction of environmental impact of use at the product development stage)

Gasoline, light oil, etc.

[4]

[5]

Logistics

Sales

P.34

Gasoline, light oil, etc.

[6]

Use of products

Used parts, recycled parts, etc.

P.35

End-of-life vehicles, waste parts, etc.

Physical flow

Recycling

P.43

Airbags, fluorocarbons, automobile shredder residue, etc.

Inputs Outputs

Proper disposal by contractors, etc.

manufacturers

CO2,NOx,CO HC,PM, noise,etc.

P.32

Vehicles, parts, etc.

[7]

22

Recyclable materials

CO2,NOx,CO HC,PM, noise,etc.

Recyclable materials, used bumpers, etc.

Energy (electricpower, city gas, oil, etc.), water, etc.



[1] Development and Design Promotion of DfE*1 In order to make products and services more environmentally friendly, MMC has traditionally chosen easily recyclable parts and materials, and improved fuel efficiency through lighter weight designs and the use of new technologies. Because of tightening environmental standards, growing public interest and increasing product liability, we have introduced DfE and established a framework for its implementation in order to develop more environmentally friendly products. At MMC, DfE principles are followed from the initial concept development stage prior to the stage at which specifications are determined. An examination is made of environmental concepts taking into consideration the environmental impact

Quality Gate

Design division,etc.

throughout the lifecycle. Ways of improving recyclability and reducing vehicle weight are also confirmed by means of appropriate methods of measurement and assessment, such as LCA*2 in order to reduce the environmental impact over the lifecycle as a whole, thereby allowing us to develop more environmentally conscious products. DfE principles will be properly undertaken with the “Quality Gate” development process management system introduced from DaimlerChrysler. The DfE Promotion Working Group, which is composed of members from various fields such as recycling, materials and production, set up under the Environmental Management/Recycling Committee of the Environmental Council will ensure full-scale implementation of DfE.

Project manager

DfE promotion division Data organization and proposal of environmental concepts

Adoption of LCA MMC has been looking into the introduction of LCA since fiscal 2000. From fiscal 2002, LCA has been clearly identified as an important tool for promoting DfE, and further steps are being taken to introduce it. In fiscal 2002, a database of vehicle production processes forming the basis for LCA by MMC was established, and the study of new models using this launched. MMC will reflect knowledge about LCA on developing concepts of vehicles, verify environmental impact throughout those lifecycle in the stage of studying specifications, and promote to reduce the impact in the project. Methods and databases will continue to be developed in order to further raise accuracy and efficiency. Reduction of CO2 emissions

Improvement of fuel efficiency

Verification of effect over entire lifecycle (CO 2 emissions)

- Concepts - Draft application indices and numerical targets - Costs and feasibility

Current vehicle (for comparison) All steel body

Production

QG F: Determination of product concept

Determination of concepts and plans of numerical targets

- Numerical targets by component - Planning of target attainment activities

?

Disposal

(Negligible compared with production and use)

QG E: Determination of framework

QG C: Validation of prototype QG B: Completion of development

Design, prototype, and testing

+ (Increase in energy use due to aluminum refining)

(Increase in fuel efficiency due to weight reduction)

Determination of numerical targets

QG D: Determination of specifications

New vehicle Steel + aluminum body

Use

Design conception

Use of aluminum

Reduction of body weight

? (Dependent on level of increase in fuel efficiency and distance traveled during use)

Lifecycle

Design assistance, and verification using appropriate methods of measurement and assessment

Quantitative assessment by LCA

Outline of use of LCA

QG A: Conclusion of final quality confirmation

DfE process

Notes (Design for Environment) *11:: DfE Approach designed to reduce the environmental impact of a product throughout the entire lifecycle at the product design and development stage. *2: LCA (Life Cycle Assessment) *1: A method of comprehensively and qualitatively forecasting and assessing the impact on the environment throughout the life of a product from the extraction *1: of oil and minerals and manufacture of materials and products to their use and ultimate recycling. *1: The ISO14040 series of standards provides global standards for expressing the scale of the impact on the global environment of products. *

23


[2] Procurement Green Procurement To make procurement more environmentally friendly, MMC/MFTBC began to engage in what is called “green procurement” in November 2000. As part of this, MMC/MFTBC are calling on all suppliers of parts and materials to acquire ISO14001 certification (the international standard for environmental management system) by March 2005. Acquisition of ISO14001 certification helps to reduce the environmental impact of not only the goods supplied by suppliers, but also suppliers’ business activities.

304 of MMC/MFTBC’s 512 suppliers (59% of the total) had acquired certification as of the end of fiscal 2002. Under consideration, etc. 5%

Already acquired 59%

We are also working in collaboration with suppliers to reduce the quantity of hazardous substances in parts and materials. A particular focus is on using substitutes for the four substances whose use is restricted in Europe (lead, mercury, cadmium and hexavalent chromium).

Will acquire 36%

State of ISO14001 compliance of main suppliers

Use of FSC*1-certified paper In order to make its own small contribution to protecting the forests in the world, MMC used FSC-certified paper to produce catalogs for the Grandis launched in May 2003. This is paper that is made of wood from forests that have been responsibly managed, from planting and rearing to felling, paying proper consideration for the surrounding environment and local community. In the future, we aim to simultaneously make effective use of resources and protect the woods by making balanced used of FSC-certified paper and recycled paper for our publications. (This report is also printed on FSC-certified paper.)

FSC-certified mark on the catalog

FSC - JPN - 0008 FSC Trademark

1996 Forest Stewardship Council A.C.

Catalog for the Grandis

Notes (Forest Stewardship Council) *11:: FSC A nongovernmental organization (NGO) that operates a forest certification system. The FSC acts as a third-part body that checks *1: and certifies whether forests are sustainably managed according to its own independent standards. *

24



[3] Production Automobile production activities have a bearing on everything from environmental problems at a local level to global environmental concerns. Recognizing this, MMC/MFTBC are taking concerted action to continuously reduce the impact on the environment. Environmental Setup MMC produces vehicles such as passenger cars, commercial vehicles and mini cars, at three plants in Japan, and MFTBC produces vehicles such as trucks and buses of all sizes at one plant in Japan. A number of production processes take place at plants, including casting, forging, machining, heat treating, resin forming, stamping, welding, painting and assembly. Core parts, such as engines and car bodies, are manufactured within the company, while other component parts are procured from specialist makers for assembly into vehicles. MMC/MFTBC take proactive measures to reduce and prevent the environmental impact of activities at its plants, and the leading role in this is played by the Environmental Council’s Production Committee. As can be seen in the diagram opposite, each subcommittee has a number of teams that work on specific issues.

Global environmental problems Destruction of the ozone layer

Environmental problems over a wide area

Acid rain

Local environmental problems Global warming

Photochemical smog

Soil pollution

Noise

Depletion of earth’s resources

Vibration Water pollution

Bad smells Ground subsidence

Air pollution

Environmental problems surrounding production activities

Production Committee (Meets twice a year)

Nagoya subcommittee

Environment protection steering team

Kyoto subcommittee Secretariat

(Secretariat Council)

*

Mizushima subcommittee

Saving energy steering team

Truck / Bus subcommittee*

Logistics steering team

: Transferred to MFTBC’s Production Committee from fiscal 2003.

Organizational structure of the Environmental Council’s Production Committee

Production Committee (Functions)

Environmental Council (deliberation of policy)

Policy Reports and proposals

Auditing of environmental measures Horizontal communication of information Deliberation of direction of measures

Policy Reports and proposals

(Categories of measures)

District subcommittees (at each plant)

Protection of plant environments Energy conservation measures Reduction of industrial waste Improvement of production processes (reduction of environmental impact) PRTR compliance Improvement of logistics Cooperation with domestic production affiliates Concern for the environment in relation to overseas operations Instructions Reports

Working groups Groups of specialists at each plant established to consider specific issues

Activities of the Environmental Council’s Production Committee

25


Energy Conservation (Prevention of Global Warming) In order to conserve energy so as to preserve the earth’s resources and prevent global warming, we are working to cut energy use (such as use of electricity and fuels) and to curb emissions of the greenhouse gas CO2 generated as a result of such use. Main energy saving measures 1. Appropriate operation of cogeneration systems*1 2. Reduction of motor outlet pressure (plant air, steam) 3. Minimization of energy consumption outside 3. production hours 3. (stoppage of intake and exhaust fans) 4. Introduction of more efficient equipment 5. Revision of work and operating conditions 3. (temperature settings, drying furnace ignition times, etc.)

As a result of energy conservation at plants in fiscal 2002, total energy use at the production stage (total CO2 emissions) was down 1.7% from fiscal 2001 to 506,000tCO2, meeting the target of keeping use below 543,000t-CO2. CO2 emissions in relation to sales were 25.1t-CO2 per 100 million, a reduction of 10% from fiscal 2001. We will continue to revise work patterns to suit the operating status of production lines and to conduct detailed checks on energy use by means of activities such as energy conservation patrols in order to further reduce CO2 emissions. (t-CO2 / 100 million) 35 30

29.4

20

600

Sequencer

( ) Improvement of cupola melting efficiency Optimum control of the combustion air feed to casting cupolas has improved combustion efficiency and reduced use of coke for fuel by 10% compared with in the past. Improvements to hot water flow capacity have at the same time enabled electric furnaces to be partially shut down and electricity use to be reduced.

Category

25.1

648t/year

Electricity

1,865,000kWh/year

Cupola melting furnace

CO2

2,812t-CO2 /year

( ) Introduction of steam compressor By feeding high-pressure steam (2.0MPa) generated from a cogeneration system waste heat boiler to a steam turbine (150kW output), the shaft power load of the compressor motor (300kW) has been reduced by 50% (recovered energy: 1,080,000kWh/year). ( ) Control of number of small boilers in operation The number of small boilers operated is controlled to meet changes in steam demand (1t/h per boiler, 8 boilers).

Others(purchased steam, gasoline, light oil, coke) 8% Kerosene/fuel oil 7%

City gas 12% 515 506

Intake

Ventilator

Steam compressor

Small boilers

(%) 40

283,000k /year

Purchased electricity 58%

12 10 11

(crude oil equivalent)

City gas for cogeneration 15% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 (FY)

Trends in energy consumption (CO2 equivalent)

Introduced at Kyoto Plant-Kyoto (Oct. 1997)

20

10

0

Introduced No.2 unit at Kawasaki Plant (Oct. 2001)

30

400 200

Airflow meter

Reductions in energy consumption, etc.

Total CO2 emissions

720 691 690 679 705 706 701 662 626 611 594

Ventilator inverter

Reduction

Coke

CO2 emissions to sales

29.0 29.5 27.9 27.6 27.0 28.6 27.2 27.4 26.7 26.5 26.8

25

(1,000t-CO2) 800

Examples of energy saving measures

Breakdown of energy consumption, FY2002

Introduced at Nagoya Plant-Oye (Oct. 1992)

1 0

2

2

2

6 2

17

Introduced at Kawasaki Plant (Jul. 2000)

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 (FY)

Percentage of total electricity output generated by cogeneration(whole company)

Notes System *11:: Cogeneration Cogeneration is a means of efficiently extracting energy by simultaneously generating electricity by turbine (such as gas turbines powered by city gas) *1: and using the waste heat as a heat source for uses such as air conditioning and water heating facilities. *

26

15


Reduction of Waste Measures to reduce the amount of waste generated during the production stage focus mainly on increasing the recycling rate and reducing the amount of landfill waste produced. The main forms of waste produced are metal scrap, slag (waste casting sand, etc.), waste oil and sludge. Emissions of these are being reduced by improving production methods and improving material yields*1. Waste that is still generated is recycled and reused wherever

The thorough sorting of municipal waste (into waste paper, empty cans and plastic containers) and increased recycling, meanwhile, has substantially reduced emissions of waste for incineration, enabling the waste incinerators at three plants to be shut down. In order to keep emissions at zero and further promote the 3Rs*3 in the future, we will continue to take necessary action.

possible. As a result, the target of achieving zero emissions*2 of landfill waste was attained at all plants in March 2002, and emissions were kept at zero in fiscal 2002. As regards performance in fiscal 2002, waste emissions came to 254,000t/year and the resource recovery rate to 99.4%, both improvements on fiscal 2001. Plant

Zero emissions achieved

Nagoya Plant

March 2001

Kyoto Plant (now Powertrain Plant) Mizushima Plant

March 2002

Truck & Bus Production Office (now MFTBC Kawasaki Plant)

Reuse(95.3%)

Metal scraps Waste oil Waste paper Slag Glass and ceramic waste

Recycled metals Recycled oil Recycled paper Roadbed material Cement feedstock, etc.

Recycling (95.2%)

Waste


Incineration Incineration ash (4.8%)

Sludge Waste plastics Waste oil, waste alkalis Waste paper, waste wood

Thermal recycling(4.2%)

Heat recovery

Direct landfill (0.02%) Glass and ceramic waste, other slag

Reduction (0.5%)

Resource recovery rate : 99.4%

Steam, etc.

Landfill (0.05%)

Waste disposal process in FY2002

500

481 488

498

484 493

Waste

400

300

200

0

438 443

404

100

299

257 254

Landfill disposal 24 26 27 21

50

82 80

95

97 98

99 Waste plastics 2%

76 73 75

78

General waste 1% Other waste 1%

Sludge 2%

87

90

67 51 49

(%) 100

93

342 339

29 100

(1,000t / year) 150

Waste

Landfill disposal

(1,000t / year) 600

Waste oil 3%

Metal scraps 63%

79 80 Slag 28%

70

Total 254,000t /year

60

11

8 4.2 1.1 0.1

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

0

50

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

(FY)

Waste emissions and landfill disposal

(FY)

Waste recycling rate

Breakdown of waste for landfill in FY 2002

Notes

*11:: Yield proportion of raw materials that is actually used in products. *2: The Zero landfill emissions *1: MMC/MFTBC define emissions as “zero emissions” if the proportion of waste generated disposed of by landfill is 0.1% or less of the total. *3: 3Rs *1: Reduction, reuse and recycling * 27


(1) Reduction of byproduct emissions As part of moves to promote the “3Rs” to reduce waste emissions, MMC/MFTBC are paying particular attention to reducing emissions of metal scraps and waste casting sand (which accounted for 87% of waste emissions in fiscal 2002) in proportion to production output (emissions to sales) by 2% from the level in fiscal 2001 by the end of fiscal 2006. Emissions per 100 million in fiscal 2002 were 11.1t, a reduction of 7.5% from fiscal 2001. Main measures: 1. Improvement of yield through use of tailored blanks*1 2. Improvement of yield by shaping two parts together 2. in presses

(2) Recycling As a means of recycling waste as raw materials, a form of recycling known as “material recycling”, MMC/MFTBC are promoting the recycling of waste casting sand as roadbed material, the use of chemical sludge from the painting process to make cement, and the reduction and recycling of waste paper generated by offices. MMC/MFTBC are also promoting “thermal recycling”, for example, recovering the waste heat produced when combustible materials such as waste plastics, paper and wood are incinerated using waste heat boilers to generate steam for use at plants.

3. Reduction of waste shavings through reduction

Generate source

2. of machining area

Examples of recycling uses

Kinds of waste

Casting shop Waste casting sand Iron material, roadbed material Stamping shop Metal scraps

Painting line

Whole plant

Office, etc.

Casting material

Chemical sludge

Cement materials

Paint sludge

Fuel

Washing thinner

Recycled thinner, fuel

Waste oil

Recycled oil, fuel

Plastic waste

Plastic material, cement materials, fuel

Waste water treating sludge

Cement materials

Glass and ceramic waste

Glass material, roadbed material

Dust

Cement materials

Grinding sludge

Cement materials

Incineration ash

Roadbed material

Paper

Recycle paper materials

Rationalization of Water Use During the production stage, use is made of water such as industrial water, well water and city water. In order to conserve resources, action plans have been drawn up for each plant to reduce water use, and rationalization of water use is continuing.

(1,000m3/year)

Well water Industrial water City water

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0 1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Trends in water use

Well water 29%

City water 17%

6,004,000 m3/year Industrial water 54%

(after melting and solidification)

Breakdown of water use in FY2002

Reduction of kitchen refuse Kitchen refuse from employee refectories is fed to a processor for drying and reduction by indirect heating, reducing the 160 tons generated annually to 50 tons. The smell of the waste gas generated during drying is removed by a deodorizing unit, and trials are planned to be conducted regarding reuse of this dried matter. Kitchen refuse processor

Notes blanks *11:: Tailored A technique for manufacturing parts such as panels for vehicles whereby steel sheets of different thickness or strength are welded to form a single blank that is *1: then processed in a press. By using a thicker or stronger sheet for parts that require greater strength and a thinner sheet for other parts, it is possible to reduce *1: weight while at the same time maintaining strength. Other advantages of this method are that it reduces the number of parts used and cuts material *1: and processing costs. *

28

2002

(FY)


Prevention of Air Pollution (1) Sulfur oxides (SOx) The use of cleaner energy sources containing less sulfur, such as kerosene and city gas, for combustion facilities, such as boilers and industrial furnaces, has enabled SOx emissions to be reduced to extremely low levels, and we shall continue to take steps to reduce fuel use and curb SOx emissions by promoting energy conservation measures in the future. (See P.58-61 regarding emissions at each plant.) (2) Nitrogen oxides (NOx) We have made every effort in the past to minimize NOx emissions, such as by installing low NOx boilers, and using low NOx burners, and will continue taking active steps to conserve energy and cut fuel use and NOx emissions in the future too. (See P.58-61 regarding emissions at each plant.) (3) Dust We are working to cut emissions of dust generated by casting facilities, boilers and waste incinerators, etc. by capturing dust with high-performance dust collectors such as bug filters and removing it using afterburners, and also limit emissions by proper maintenance and control of combustion.

(4) VOCs*1 We are working to curb emissions of solvents during the body painting process. Measures being taken include the introduction of high transfer efficiency painting equipment, the adoption of new painting methods, use of low-solvent cleaning methods for cleaning paint guns when changing colors, increased recovery and use of cleaning thinner, and the equipping of ovens with exhaust treating equipment. In the body painting shop renewal project, moreover, we are introducing low-solvent technologies such as waterborne paints to help curb emissions of VOCs further. We are also working to reduce the VOC emissions from the processes of painting components such as engines, transmissions and axles, by using powder and waterborne paints that use hardly any solvent.


(5) Measures against dioxins We have taken comprehensive action to curb emissions of dioxins, including improving waste incineration facilities, closely controlling combustion, and managing waste for incineration (such as by separating waste containing chlorine and reducing the quantity of incineration waste produced). By sorting (into waste paper, empty cans and plastic containers) and recycling municipal waste, the volume of combustible waste produced has been drastically reduced, as a result of which the waste incinerators at three plants have been shut down. The one waste incinerator still in operation is subject to strict combustion control in order to reduce dioxin emissions to one tenth of the limit (1ng-TEQ/m3N).

Industrial waste incinerator

Melting furnace dust collector

Notes

*11:: VOCs * Volatile organic compounds (Xylene, Toluene, etc.)

29


Prevention of Water Pollution Sources of water pollution at plants include process wastewater generated during production processes such as painting, and domestic-grade wastewater from sources such as refectories and toilets. As the pollution load of process wastewater varies depending on the process, it is first put through appropriate primary and secondary treatment before undergoing advanced wastewater treatment (such as activated carbon filtration) at a general treatment facility in order to purify it. The quality of water discharged into public bodies of water is controlled in accordance with voluntary standards that are stricter than legal requirements, and is constantly monitored by automatically measuring quality of water. We have also taken every possible precaution to deal with emergencies, such as by installing emergency water tanks, and are working hard to prevent eutrophication*1. Ways of doing so include the use of sub-materials for production that do not contain nitrogen and phosphorus, which cause eutrophication of closed bodies of water (such as lakes, marshes and bays), so as to cut emissions

of such substances, and the establishment of wastewater treatment facilities equipped with denitrification systems. BOD

(Tons per year)

50 40 30 20 10 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 (FY)

Changes in BOD*2, COD*3

Prevention of Noise and Vibrations In order to reduce the impact on localities around plants from main sources of noise and vibrations, such as stamping, compressors, blowers and engine test sites, we are making increasing use of quiet, non-vibrating equipment, improving layout and improving sound insulation of buildings, and soundproofing and vibration-proofing. When establishing new facilities, we also conduct simulations of noise and vibration levels off-site to enable appropriate countermeasures.

Denitrification of domestic-grade wastewater The ammonia nitrogen contained in domestic-grade wastewater is oxidized to form nitrous acid, and then nitrite nitrogen. In order to denitrify it, it is placed under anaerobic conditions (in a denitrification tank) in this state, the nitric acid in wastewater is reduced by the action of denitrifying bacteria, and emitted into the atmosphere as nitrogen gas. Aeration tank (aerobic tank)

Sedimentation tank

(BOD treatment process) N2

Nitrification tank (aerobic tank) (NH4＋

NO3−)

Methanol

Denitrification tank (anaerobic tank)

Sedimentation tank

Denitrification process

Wastewater treatment (denitrification process)

COD

60

Denitrification flow diagram (activated sludge method)

Sedimentation tank

Reduction of Bad Odors Casting shops, painting lines and wastewater treatment facilities, etc. are all sources of bad odors. These smells are dealt with in various ways depending on their individual properties. Solutions include activated carbon adsorption, afterburning (direct, catalytic and regenerative combustion) and deodorization by chemical dosing. Action is also taken in the course of day-to-day management to prevent bad odors by, among other things, monitoring odors around plants by conducting patrols and simulations of bad odors.

Casting facility deodorizing facility

Prevention of Soil and Groundwater Pollution In order to prevent any effects on human health, we have always surveyed levels of harmful substances in groundwater (using existing wells) to confirm the absence of pollution. To make doubly sure, however, we are also establishing new observation wells to monitor groundwater. In order to ensure appropriate action regarding this issue, we set up a Soil Environmental Protection Study Taskforce in July 2001, and are taking voluntary action to prevent soil and groundwater pollution by formulating a company-wide position on the issue, investigating history of using chemical substances at each plant, and drawing up manuals on proactive preventative measures to prevent soil pollution.

Notes

*11:: Eutrophication of nutrients such as nitrogen and phosphorus in enclosed bodies of water such as lakes, marshes and bays results in an abnormal proliferation *1: Oversupply of plankton and the occurrence of red and blue tide, which harms the fishing industry and reduces water quality by causing it to smell. *2: BOD (biological oxygen demand) *1: An indicator of water pollution that measures the amount of dissolved oxygen consumed by the oxidation and decomposition of organic matter (waste) *1: by aerobic microorganisms in water over a certain period of time. *3: COD (chemical oxygen demand) *1: An indicator of water pollution that measures the amount of oxygen consumed by the oxidation of organic matter in water. * 30


Chemical Substances Management Regarding the use of chemicals, the properties of new chemicals and details of plans of use are carefully examined and the advisability of introduction examined under the existing system of pre-screening for toxicity of chemical substances. In addition, steps are being taken to reduce emissions of chemicals in order of priority according to risk level. Daily inspections are also made of handling facilities in order to ensure safety (in respect of concern for dangerous substances and the working environment) and protect the local environment. (1) Emissions of PRTR*1 substances In fiscal 2002, we used 6,930t of 30 substances covered by the PRTR system (21 substances if the type 1 designated chemicals whose use is below the five tons per year cutoff point are not included). A breakdown of the release and transfer of chemicals shows that approximately 30% was emitted into the environment, 11% was transferred as waste, and the remaining 59% was recycled, consumed or eliminated. The majority of emissions into the environment are of toluene and xylene used in the painting process, and in order to cut emissions of these substances, we have incorporated the use of waterborne paints as part of our paint shop renewal project.

(2) Storage of PCBs*2 The PCBs (polychlorinated biphenyls) used as insulating oil for sealing transformers and condensers are properly controlled as required by law. The total number of transformers and condensers at the end of fiscal 2002 was 2,074. MMC


Measures to Reduce Lead Use (Lead-free Electrodeposition Coating) MMC have expanded the use of lead-free electrodeposition paints at the undercoating stage, and in fiscal 2002 completed the elimination of lead from electrodeposition coating lines at passenger car production plants in Japan.

1,210

MFTBC

864

Total

2,074

PCB storage warehouse

Electrodeposition coating (undercoating)

(tons/year) 4,000

3,680

3,000

3,131

3,177 2,227

2,000

2,067

1,000

0

1998

1999

2000

2001

2002 (FY)

Spot-billed duck family relaxing in a pond at a plant

Changes in emissions (total emissions into the atmosphere and public bodies of water)

Notes (pollutant release and transfer register) *11:: PRTR Under the PRTR system, businesses themselves survey and report to the authorities emissions into the atmosphere and transfers of waste from plants *1: and business establishments. These data are compiled by the authorities and published together with information on toxicity. *1: (In March 2003, those data were published for the first time.) *2: PCBs (polychlorinated biphenyls) *1: Chemically stable substances with excellent insulating properties that are widely used for insulating oil, insulating media and plasticizers. *1: Because of their accumulation in the human body and the difficulty of disposing of them due to their toxicity and chemical stability, however, their production *1: and use has been banned in Japan since 1972. *

31


[4] Logistics in order to prevent global warming and protect the environment, and are actively developing an environmentally friendly logistics system.

MMC/MFTBC Logistics (1) Domestic logistics Procurement logistics:

Transportation to plants for production parts manufactured by parts makers

Production logistics:

Transportation of production parts between plants Transportation of vehicles manufactured at plants to motor pools

Measures to Increase Transport Efficiency(Reduction of CO2 emissions) As a result of the various steps shown below taken to reduce emissions of CO2 during transporting of built up vehicles, CO2 emissions during transportation in fiscal 2002 were down 1.4% from the previous fiscal year to 44.4kg per unit shipped (CO2 weight equivalent) for passenger cars, and down 3.0% to 45.3kg per unit shipped for trucks. Passenger cars

Transportation from motor pools to dealers

Marketing logistics:

Total emissions (bar graph)

Transportation from plants to variant makers Transportation from variant makers to dealers Transportation of service parts from parts centers to dealers

Inbound logistics

Production logistics

Outbound logistics

Suppliers

Motor pool MFTBC dealers

Variant makers

Parts sales

Parts centers

companies

(2) Overseas logistics As well as built-up (BU) vehicles, knockdown (KD)*1 parts, service parts and production line equipment are also exported from Japan.

Overseas suppliers / service parts centers Overseas production plants

Export operations

BU vehicles Parts

Overseas

Service parts

MMC / MFTBC

KD parts and equipment

Notes vehicles *11:: Knockdown Vehicles exported in parts for assembly at local plants. *

32

dealers

(Japan)

BU vehicles

Overseas

KD parts

25,000

50

20,000

48

15,000

46

10,000

44

5,000

42

1999

2000

2001

2002 (FY)

40

CO 2 emissions during domestic transportation of BU vehicles

MMC / MFTBC

Import operations

(kg-CO 2 /unit)

0

MMC dealers

Trucks

(t-CO 2 )

production plants

BU vehicles

Emissions per unit shipped (line graph)

MMC/MFTBC recognize the importance of reduction of packing materials and improving transport efficiency at the production, sales and service stages


Promotion of “modal shift”*1 In order to develop an efficient transport system utilizing multiple means of transport---principally trucks, ships and railways---we are promoting a switch from a mainly land-based transport system to a marine one. The transport policy has already been changed in such a way that 100% of passenger cars that can be transported by sea are now transported by sea.


More efficient use of trailers Taking advantage of a relaxation in the regulations, vehicles are now also loaded over the top of transporter tractor units in order to increase the number of vehicles transported per transporter and so increase transportation efficiency.

Measures for Reduction of Packing and Packaging Materials In order to reduce the use of packing and packaging materials used in transporting production parts and service parts to production and sales affiliates, we are taking steps such as the following:

Promotion of idling prevention, etc. Regarding land transport, MMC/MFTBC are taking steps to encourage fuel-efficient driving by, for example, giving advice on driving at economic speeds, and prohibiting sudden starting, acceleration and unnecessary idling. Loading tractors are in addition equipped with digital tachographs*2 in order to raise the efficiency of control of operations and promote fuel-efficient driving.

Increased use of returnable racks and boxes*3 Use of returnable racks and boxes was introduced in 2002 for the transportation of service parts to the United Kingdom, Switzerland and Austria, and introduction on other routes, such as to the U.S., is planned.

Marine transport Returnable plastic boxes

Marine transport is also being used more for trucks, and in the case of land transport of small trucks, we are switching from the existing system of transporting the trucks under their own power to a system of using transporters as in the case of passenger cars.

Returnable steel racks

Replacement of wooden with steel packing cases Use of steel cases for transportation of knockdown parts, principally to Asian countries such as India, Vietnam and China, is under consideration. Tachograph

Transportation of small trucks by transporter

Rail transport is also being used in certain regions where improvement in efficiency can thus be obtained.

Expansion of joint transportation with other manufacturers Steps are being taken to improve the efficiency of transportation in cooperation with other manufacturers, such as through the reciprocal use of the return legs of transportation journeys on land.

Partnership with DaimlerChrysler Expansion of “round use”*4 of returnable racks is being considered. Other measures Other steps being taken include the use of stretch film packing and simplified packaging specifications.

!

Production parts packing

Rail transport

!

Service parts packing

Proportion of returnable packaging materials (FY2002)

Notes shift **11::: Modal Optimized transportation by combining several means of transportation, in order to reduce the impact on the environment and to reduce transportation cost. tachographs **21:: Digital Detailed data on driver operations (time, speed, distance, engine speed, etc.) are collected for analysis by computer to increase the efficiency of operations. racks and boxes **31:: Returnable After unpacking at their destinations, the racks and boxes used for packing parts are folded up to between one third and one tenth of their original size and sent to Japan. These steel racks and plastic boxes can be used for more than 10 years. (The wooden, plywood, or steel boxes previously used were disposed **11:: back of at each destinations.) use **41:: Round Utilization of returnable racks for multi-destination before the racks get returned to the original place. the service parts shipped to Europe by the returnable racks are also used for service parts shipments from DaimlerChrysler in Europe to DaimlerChrysler **11: E.g. in Japan, instead of just returning empty racks directly to Japan from Europe.

33


[5] Sales MMC/MFTBC’s products reach the customers through networks of dealers. Dealers function as the interface, as it were, between MMC/MFTBC and customers in other ways as well. For example, they repair vehicles, replace parts, and take back ELVs. As dealers play such an important role, it is also growing increasingly important that they too take action to protect the environment and recycle vehicles by appropriately disposing of industrial waste and ELVs, and collecting and recycling parts. MMC/MFTBC provide support for and seek to raise the awareness of dealers throughout Japan regarding environmental protection activities in order to raise the environmental performance of the corporate group as a whole.

Company-wide action to achieve continuous improvement

Attainment of management targets for categories of activity

Development of Setup for Environmental Action by Dealers MMC/MFTBC not only of course require it dealers to meet the necessary legal requirements regarding environmental measures, but also consider it important that they establish and maintain systems to protect the environment and proactively prevent emissions of environmentally hazardous substances. Working with the Mitsubishi Motors Sales Association, MMC issued in December 2000 a manual for dealers on how to make their environmental activities compliant with the ISO14001 standard for environmental management systems. (Due to the enactment of new legislation in recent years, the number of headings was increased and a revised edition published in January 2003.)

To promote environmental activities in MMC dealers more certainly, MMC revised the plan to promote them, and incorporated the construction of above management system with “Dealer Standards” in fiscal 2002, which was newly set in order to reform domestic sales organization. Measures Taken by Dealars (1) MMC dealers Improvements are constantly being made in areas such as storage of replaced bumpers and sorting of waste.

Environmental management system Establishment of structure and identification of persons in charge Determination of current situation and formulation of plan Declaration on environmental action by top management (president)

Activity plan

Activities Report and inspection Review

A manual for environmental activities “Action by Dealers to Cope with Environmental Problems”

Current situation Outline of management systems of dealers

Categories of activity by dealers

Disposal of waste oil and parts Collection of replaced bumpers* Treatment of wastewater at repair shops Disposal of ELVs* Collection of air-conditioner refrigerant* Proper management of CFC coupons＊ Proper disposal of airbags* Compliance with PRTR law Disposal of ordinary business waste

*See P.46-48 for details of vehicle recycling by dealers.

34

Following this manual, dealers are establishing management systems for company-wide environmental action, supervised directly by the presidents of the companies concerned, that clarify the loci of responsibility for environmental activities. Continuous improvements are being made to these systems to achieve and maintain management targets in various categories of activity. (These categories are outlined in the left table .) Dealers also report the results of their activities to MMC/MFTBC every May for assessment.

(2) MFTBC dealers Various innovations are being made regarding the location and method of storage of waste due its bulk.

(3) Parts dealers As parts dealers do not directly generate any industrial waste, the focus of their activities is on segregating wastes, etc. in the office.



[6] Use of Products Prevention of Global Warming The Earth’s six billion human inhabitants consume vast quantities of energy. The carbon dioxide (CO2) emitted by vehicles and the CFC substitute (HFC134a) used as a refrigerant in car air conditioners are greenhouse gases, and emissions of these gases need to be cut in order to prevent global warming. MMC/MFTBC take action to develop powertrains that generate lower CO2 emissions and are continuously making design improvements to car bodies (such as by reducing their weight and air resistance). We are also reducing use of refrigerants in air conditioners and developing air conditioners that are HFC134a free.

Improvement of vehicle fuel efficiency In Japan, target standards for fuel efficiency*1 are laid down under the Energy Conservation Law to reduce CO2 emissions from vehicles. (These targets are to be met by gasoline vehicles by fiscal 2010, and by diesel vehicles by fiscal 2005.) MMC works to improve fuel efficiency by, among other things, improving engines and drivetrain systems, reducing the weight of vehicles, and reducing running and air resistance, as we bring new models to market in order to achieve the 2010 standards ahead of schedule by around fiscal 2005. The new models introduced in fiscal 2002 (Colt and Lancer Cargo) meet the above target standard for fuel efficiency.

Average fuel efficiency by weight class (10-15 mode) (km/ ) 24

2000 Fiscal year 2001 Fiscal year 2002 Fiscal year Fuel efficiency standard (fiscal 2010)

22 20 18 16 14 12 10 8 6

875kg

1000kg

1250kg

1500kg

1750kg

Gasoline vehicles

(km/ ) 24

2000kg

2250kg


22 20 18

10 -15 mode fuel consumption rate and actual on-road fuel efficiency

Speed (km/h)

The oft-cited “10-15 mode fuel consumption rate” is measured based on a town driving pattern consisting of 10 driving modes and high-speed urban driving consisting of 15 driving modes, including idling, acceleration and deceleration, as shown in the figure below. Fuel consumption is measured under fixed test conditions laid down by law (e.g. two vehicle occupants, air conditioning off, etc.). Actual on-road fuel efficiency can consequently differ from 10-15 mode fuel efficiency depending on the mode and conditions of driving (such as how the accelerator is pressed, whether the air conditioner is on, average speed, repeated trips of short distances, and so on). 70 60 50 40 30 20 10 0

7 2 1

3 6 8 10 9 4 5

1

2

9 13 8 3 6 7 10 12 11 4 14 5 15

16 14 12 10 8 6

mini~750 structure A

mini 875 structure A

mini 875 structure B

mini 1000

lightweight 1250

Gasoline truck / Automatic transmission vehicle (km/ ) 24 22 20


18 16

Town driving pattern

0

1st cycle

2nd cycle

High-speed driving pattern 660 (seconds)

3rd cycle

14 12 10 8 6

mini~750 mini~750 mini 875 mini 875 mini 1000 lightweight lightweight structure A structure B structure A structure B 1000 1250

Gasoline truck / Manual transmission vehicle

Mini-structure A: Minica vans, etc. Mini-structure B: Minicab vans, minicab trucks Lightweight: Lancer Cargo

Notes efficiency standards *11:: Fuel Set for passenger cars and commercial vehicles of a gross vehicle weight of 2.5 tons or under. *

35


Improvement of fuel efficiency of passenger cars and light trucks (1) High-efficiency engine The MIVEC*1 engine, which contributes to improved fuel efficiency, reduced exhaust emissions and increased output, was adopted for all models of new Colt launched in 2002.

Colt

Improvement of truck and bus fuel efficiency

Drive pulley

Steel belt

Driven pulley

Low gear

Overdrive

CVT

(3) Energy-saving air-conditioner system The air conditioner used in the Colt employs the following new technologies in order to offer both improved air conditioning performance and greater practical fuel efficiency. 1. More efficient component parts (air compressor, air conditioner unit and condenser) 2. Optimized control (energy conservation control, harmonized control of air conditioner and engine) 3. Reduced air conditioner weight Condenser

(1) Direct-injection diesel engine technology Direct-injection diesel engines offering outstanding fuel efficiency and durability have traditionally been used for truck and bus engines. To meet 1998-1999 Japanese exhaust emission regulations and further improve the fuel efficiency of truck and bus engines, use is additionally made of VG turbo chargers and intercoolers to provide sufficient air for combustion at both low and high speeds, and of an electronically controlled common-rail fuel injection system, EGR system (see P.39) and MFTBC’s new MIQCS combustion system to ensure a proper mix of fuel and air to increase combustion efficiency. VG (variable geometry) turbo charger Uses a movable vane to make effective use of exhaust energy, which tends to be insufficient at low speeds, to ensure sufficient induction of air from low speeds upward. Exhaust

Actuator

Colt MIVEC engine (1.3L)

Guide vane

(2) Expansion of use of CVT*2 A compact, lightweight CVT employing a metal belt to transmit motive power and capable of continuous variable transmission has been developed and phased into use for small cars in the Lancer range launched in May 2000. All Colt and two-wheel-drive Lancer Cargo models are also equipped with CVT, helping to improve fuel efficiency.

Turbine

Air compressor

VG turbo charger Air conditioner unit

Colt air conditioner system

Inter-cooler High-temperature air pressurized by the turbo charger is cooled and the air density increased. At the same time, the combustion temperature is lowered, fuel efficiency increased, and exhaust emissions reduced. Inter-cooler

Turbo charger

Radiator Engine

Lancer Cargo

Notes (Mitsubishi Innovative Valve Timing Electronic Control System) *11:: MIVEC Generic term for MMC engines equipped with variable valve timing mechanisms. *2: CVT (Continuously Variable Transmission) *1: Capable of efficiently getting the most out of engines. *

36

Inter-cooler turbo engine


MIQCS (Mitsubishi Innovative Quiescent Combustion Engine) This new combustion system simultaneously keeps the airflow in the combustion chamber down to an appropriate level, and mixes air and fuel through high-pressure injection from multihole injection nozzles, achieving both high fuel efficiency and low exhaust emissions. The system was awarded the “Technology Development Award” by the Society of Automotive Engineers of Japan in April 2002.

(4) Reduction of weight At the 2002 Tokyo Motor Show, we exhibited a Super Great large truck with a super-lightweight aluminum frame. Due to the use of new construction techniques, this new type of frame is substantially lighter (about 300kg lighter to be precise) than steel frames.

Aluminum frame MIQCS combustion

Conventional combustion

(2) Idling stop system Idling stop and start system that automatically engine off when a vehicle is not in motion (e.g. at traffic lights) and automatically engine on when the vehicle sets off is an effective to reduce fuel consumption and exhaust emissions. Large, medium and small buses traveling mostly on regular urban routes are fitted with idling stop systems either as standard or as an option. (3) INOMAT mechanical automatic transmission Since 1996, MMC has been equipping with a fuzzy control mechanical automatic transmission system called INOMAT (Intelligent and Innovative Mechanical Automatic Transmission) into MFTBC’s heavy and medium trucks and buses. The INOMAT reduces driver fatigue and offers low fuel consumption by its electronic control that optimizes gear selection and gearshift timing. In order to make driving even more comfortable, we are continuing to make improvements to technologies such as control systems.

(5) Other technologies, etc. In order to further raise fuel efficiency, we are working to reduce vehicle air resistance and expand use of low rolling-resistance tires. Tips for truck and bus users on how to improve fuel efficiency are also clearly explained on our website.


Reduction of use of air-conditioner refrigerant (HFC134a) In order to reduce use of HFC134a, which has even more of a warming effect than CO2, we have been phasing in the use of refrigerant-saving air conditioners with more compact heat exchangers and more efficient condensers since the 1997-model year, and the new models in fiscal 2002 (Colt, Lancer Cargo and Canter) were equipped with such technology. We are also working in collaboration with airconditioner manufacturers to develop air conditioners that use CO2 as a refrigerant instead of HFC134a. In order to prevent the release of fluorocarbons into the atmosphere, vehicles sold in Japan have since April 1, 2002 been labeled with caution labels regarding compliance with the Fluorocarbons Collection and Destruction Law.

Caution label regarding compliance with the Fluorocarbons Collection and Destruction Law

http://www.mitsubishi-fuso.com/jp/info/

37


Prevention of Air Pollution In order to abate air pollution, which is a particularly serious problem in urban areas, Japan, Europe and North America, along with other countries and regions, are tightening vehicle exhaust emission standards. MMC/MFTBC are taking action to achieve a cleaner level of exhaust emissions and meet these standards ahead of schedule.

Ultra LEV :

75% lower than 2000 exhaust emission standard

LEV :

50% lower than 2000 exhaust emission standard

Reduction of Diesel Engine Exhaust Emissions

Transitional LEV : 25% lower than 2000 exhaust emission standard

As well as high-tech systems such as electronically controlled common-rail fuel injection and MIQCS combustion systems, almost all of engines for trucks and buses are equipped with EGR system to make emissions cleaner and improve fuel efficiency. In order to reduce PM*1 emissions by vehicles already on the market (to comply with short and long-term exhaust emission regulations), MFTBC provides oxidization catalysts as an aftertreatment system in order to reduce emissions. MFTBC is in addition continuing to research and develop new ways of further reducing exhaust emissions, such as by improving combustion chambers and injection systems, NOx catalysts and DPF.*2 At the Tokyo Motor Show held in October 2002, a variety of exhaust-reducing technologies were exhibited, including our next-generation clean diesel engine.

LEV certification standards and certification sticker

Ultra LEV LEV

Reduction of Gasoline Engine Exhaust Emissions

Transitional LEV Others

100%

In Japan, exhaust emission standards were tightened in 2000, and a low emission vehicle (LEV) certification program has been introduced to encourage wider use of vehicles that cut emissions by more than required under the new standards (classified either as Transitional LEVs, LEVs or Ultra LEVs). MMC launched its first cars approved under the system in fiscal 2000, and new models launched in fiscal 2002 (the Colt and Lancer Cargo) have all been certified as ultra low emission vehicles (U-LEVs). Approximately 80% of Mitsubishi-made gasoline vehicles sold in fiscal 2002 (excepting those made by MFTBC) were LEVs. (1978 standard)

20.6 80%

20%

26.1 0%

Unregulated period=100

98%

7.5

12.0

0.2

2000

2001

2002

(FY)

Proportion of gasoline vehicles sold that were LEVs

Next-generation clean diesel engine

Construction of next-generation clean diesel engine High-precision EGR system

After-treatment system

- feedback control EGR system - Reduction of NOx and PM emissions during acceleration (improvement of trade-off)

- Integrated DPF + NOx catalyst system EGR cooler EGR valve

Airflow sensor

HC

High-efficiency supercharger

IN

50

96%

0 100

99%

OUT EGR cooler

Outlet throttle

Intake throttle Exhaust throttle

High-performance inter-cooler

NOx

EGR valve

50

92%

0 1970

1980

1990

97% 2000

Domestic gasoline passenger cars Trends in exhaust emission regulations

Notes

*11:: PM Matter *2: Particulate DPF (Diesel Particulate Filter) *1: Device for removing particulate matter from exhaust gas. *

38

48.1

40%

50

95%

17.1

92.2

CO

0 100

19.3

60%

(2000 standard)

100

56.7

PCV valve Intake throttle

PCI combustion (Premixed Compression Ignition)

NCRS (Next Generation Common Rail System)

- Acceleration of premixing and reduction of excess air-fue mix due to early direct injection - Simultaneous reduction of smoke and NOx due to premixed combustion and large-volume EGR

- Optimum control of injection rate waveform - Reduction of exhaust emissions, improvement of fuel efficiency, reduction of noise

Electronically controlled common-rail fuel injection system This system allows fuel to be injected at high pressure regardless of engine speed, accelerating the mixing of finely atomized fuel and air, and inhibiting emission of black smoke in exhaust gas. The advanced electronic control of fuel injection additionally makes it possible to achieve more optimal combustion than in the past, making for cleaner emissions. High-pressure fuel supply

Common rail Injector

Fuel filter

ECU

Fuel tank Fuel supply High-pressure fuel supply pump

Common-rail fuel injection system EGR EGR is short for exhaust gas recirculation. Recirculation of exhaust gas containing large quantities of CO2, which has a high specific heat, lowers the combustion temperature and reduces NOx emissions. PM reducer Since October 2003: the launch of diesel truck and bus operation controls under environmental ordinances effective in the metropolitan area, vehicles traveling continuously through affected areas have had to be fitted with particle matter reducers designated by the eight prefectural and metropolitan governments concerned (see P.41). MFTBC prepares PM reducers for each model. (For details, please contact any MFTBC dealer in Japan.)

Noise Reduction Noise emissions by vehicles are being reduced by cutting the amount of noise generated by engines themselves, intake and exhaust systems, drive systems and tires, and by arranging sound absorbing and soundproofing materials more effectively. In Japan, regulations on passenger car and truck and bus noise emissions have been phased in between 1998 and the present (1998-2002 limits). Passenger cars were made fully compliant by fiscal 2001, and bus and trucks are being progressively made compliant. In April 2002, a MMC research proposal on the theoretical analysis of tire cavity resonance and methods of reduction during motion was awarded the Society of Automotive Engineers of Japan’s Asahara Award for the Promotion of Science (see below).


（A）

Large trucks Passenger cars

95

'

&'

90

Noise limit dB


85

&$

&" &

&! &

80

%&

& %$

75

70 1971 limit

1976-77 limit

1979 limit

1982-87 limit

Latest limit

Trend in vehicle noise limits (acceleration noise)

Reducing tire noise Indentation

One type of road noise generated when a vehicle is in motion is tire cavity resonance. This arises from the relation between the shape of the tire and wheel and the road surface, and has until now Protrusion been difficult to solve in practice. This research showed that it was possible to explain how unpleasant noise is generated by vehicle tires when a vehicle is in motion by going back to first principles, untrammeled by established theory. This theoretical advance led to a new solution that consisted of making Prototype tire

irregularities on the tire and wheel, and tests on a prototype corroborated that this reduced the amount of noise generated. The research proposal was awarded the Asahara Award for the Promotion of Science by the Society of Automotive Engineers of Japan “for closely matching the current need to create a human-friendly environment, for its high potential for future application in all vehicles in the future due to its utility, and for being a valuable technology for improving human, automotive and environmental systems”. Studies are currently underway to solve cost and weight problems and incorporate the proposed construction into new products. PM reducer (oxidation catalyst)

39


R&D on clean energy vehicles (CEVs) Electric vehicles Electric vehicles (EVs) are clean vehicles that do not emit exhaust gas. While there remain obstacles to be overcome before EVs become a truly viable option, such as the limited distance that they can travel continuously and the time required for recharging, the technologies for components such as the electric motor and battery of EVs are also crucial to the fuel cell vehicles that are expected to play such an important role in the future. Because of their future potential, MMC is continuing to research and develop EVs, and entered “Shikoku EV Week 2002” in August 2002 with the Eclipse EV, an experimental car driven by a highperformance motor and battery, successfully confirming the utility of the technologies used (see P.42 for more details).

Hybrid Vehicles MFTBC is currently working on development of a mass production model of the Canter HEV, a small hybrid truck exhibited at the Tokyo Motor Show in 2002 that combines a small clean diesel engine and parallel hybrid system with electronically controlled mechanical automatic transmission to offer low emissions, high fuel efficiency and ease of driving. Another HEV developed by MFTBC is the Aero Star non-step HEV. This is a large bus fitted with a high-performance series-type hybrid system that is driven by a motor and only uses its engine to generate electricity. With the cooperation of the Enshu Railway Company in Shizuoka Prefecture, this bus has been in trial operation on ordinary bus routes since June 2002, and is scheduled to go on sale at the end of 2003. Other activities in this area include the development of a CNG hybrid truck as part of the Japanese Ministry of Economy, Trade and Industry’s (METI) ACE Project*1.

Construction of hybrid system Series type

Parallel type Engine Motor/generator

Engine

Generator

Inverter Battery

Battery

Fuel Cell Vehicles Fuel cell vehicles (FCVs) run on electricity produced by reacting hydrogen with the oxygen in air, and have considerable future potential as clean energy vehicles (CEVs). MMC is currently pushing ahead with development work in collaboration with DaimlerChrysler (DC) in order to produce a commercial FCV. MMC is manufacturing a FCV, which is made from a “Grandis” newly launched in May 2003 and fuel cell system produced by DC. And MMC plans to have this FCV authorized by the Minister of Land, Infrastructure and Transport (MLIT), and join the METI’s “Japan Hydrogen Fuel Cell Demonstration Project (JHFC)” in FY2003 with the FCV. LPG*2 Vehicles LPG vehicles emit less NOx than diesel engines, and also produce no smoke. Reflecting the comparatively welldeveloped infrastructure for LPG vehicles already in place, demand for such vehicles is increasing as interest in LEVs grows. Taking advantage of the full revamp of the Canter small-truck range in June 2002, the range was expanded by the addition of a completely restyled LPG-powered Canter in December.

Motor/generator 1,000

Inverter

&

800

Reduction gear Unit sales

Reduction gear

$'

600

%"#

$'' #"%

#""

#'&

" ! 400

! &

!!#

200

0

1998

1999

2000

2001

Unit sales of CNG (left) and LPG (right) vehicles Canter HEV (with parallel-type hybrid system)

Aero Star Non-Step HEV (with series-type hybrid system)

Notes Project *11:: ACE MFTBC has been involved in research for the METI’s ACE Project to develop high-efficiency CEVs since 1997 under a seven-year plan. *1: The program is one of the world’s most pioneering, and ranks alongside the government-industry projects in Europe and North America, *1: such as the Car of Tomorrow and PNGV programs. *2: LPG *1: Liquefied petroleum gas *

40

2002 (FY)


Natural Gas Vehicles CNG*1 vehicles powered by natural gas emit less CO2 than gasoline vehicles and also emit no black smoke, making them ideal for use as CEVs. MMC/MFTBC develop and market CNG vehicles of various types (see right-hand table), and in fiscal 2002 the range of CNG vehicles was dramatically expanded.

Up to fiscal 2001 Minica van / Minicab van and truck

Launch in 1992

Libero Cargo

Sale stopped in September

Fighter NX (medium truck)

Launch in July

Launch in 1997

Model change

Launch in 1998 Models added

Rosa (small bus)

Launch in June

Introduction of CNG vehicles

1. Natural gas vehicles (CNG vehicles) 2. Electric vehicles 3. Hybrid vehicles 4. Methanol vehicles 5. High fuel efficiency and low emissioncertified vehicles Unit shipments of these vehicles in fiscal 2002 were as shown in the table below. (All these types of vehicles are covered by the Green Purchasing Law.)

Shipments of CEVs and similar vehicles Unit shipments in FY2002 (figures in parentheses indicate percentage change on previous year)

Passenger cars

CEVs

1

Certified high fuel efficiency LEVs 2

Commercial vehicles

Total

Standard and small cars

Mini-cars

Standard and small cars

Mini-cars

Buses

Natural gas vehicles

30 (81%)

0

434 (127%)

105 (71%)

29 (153%)

598 (110%)

Ultra LEV

44195 ( 4)

0

1548 ( 4)

0

0

45743 ( 4)

4037 (293%)

39911 ( 4)

0

15866 ( 4)

0

59814 (4334%)

22458 (50%)

3513 (167%)

0

0

0

25971 (56%)

107 (81%)

59 (50%)

579 (105%)

0

0

745 (93%)

70827 (153%)

43483 (1962%)

2561 (286%)

15971 (10864%)

☆☆☆

LEV ☆☆

Transitional LEV ☆

Compliance with local government LEV certification schemes MMC/MFTBC are taking active steps to reduce exhaust emissions and gain certification under the various LEV certification schemes run by local governments. These include the 8LG LEV*2, LEV-6*3 and Tokyo LEV certification programs. MFTBC has been progressively launching low-emission buses that comply with these schemes since 2000. In fiscal 2002, however, unit output shot up, and more than 400 such buses have now been produced. A breakdown of sales shows that 8% of the total in fiscal 2002 were lowemission buses. In fiscal 2003, this proportion is projected to reach around 15%, and in fiscal 2005 almost all buses sold are expected to be low-emission types.

Total

3

1：EVs, Hybrid vehicles, and Methanol vehicles weren’t shipped. 2：Vehicles meeting Energy Conservation Law fuel efficiency standards ahead of schedule and LEVs certified under the LEV certification program Certified LEVs (See P.38 regarding the certification standards for LEVs.) 3：LPG vehicles are not covered by the Green Purchasing Law. 4：No sales in fiscal 2001.

29 (153%)

132871 (269%)

Unit sales per FY

400

LPG vehicles

January to March

Launch in 2001

Pajero Bi-Fuel

Aero Star (large bus)

Promotion of Spread of CEVs In order to promote the further development and spread of CEVs, the MoE, METI and MLIT jointly drew up an action plan entitled the “Clean Energy Vehicle Development and Propagation Action Plan” in July 2001. This plan establishes as a target having at least ten million CEVs on the roads as soon as possible by fiscal 2010, and calls for close collaboration on various measures. The types of cars covered are as follows:

Fiscal 2002 July to October to September December

April to June

Launch in 1997

Canter (small truck)

CNG Rosa


!#!

300 200 100 0

!

#

2000

2001

2002 (FY)

Unit output of certified LEVs produced by MFTBC

Notes

*11:: CNG natural gas *2: Compressed LEV Certification System for Eight Local Governments (8LG LEV) *1: A system of assessment and certification in accordance with MoE LEV exhaust emission guidelines operated by eight local governments in the Kanto region *1: around Tokyo (the prefectures of Tokyo, Kanagawa, Saitama and Chiba, and the cities of Yokohama, Kawasaki, Chiba and Saitama). Saitama City joined the *1: scheme in April 2003. *2: LEV-6 (formerly the Low NOx Emission Vehicle Certification System of Six Local Governments) *1: A system similar to the 8LG LEV program run by six local governments in the Kansai region around Osaka (the prefectures of Osaka, Kyoto and Hyogo, *1: and the cities of Kobe, Osaka and Kyoto). *

41


Measures to assist traffic flow Around 11% of vehicle fuel consumption in Japan is estimated to be wasted due to traffic jams. If traffic congestion could be eased by ITS*1 technology, it would enable CO2 emissions arising from wasteful fuel consumption to be cut. ITS technologies are broad in scope, and include some currently at the research and development stage. Some technologies, such as car navigation systems, VICS*2 and ETC*3., however, are already in practical operation. MMC/MFTBC are working to promote the spread of ITS by offering VICS-compliant car navigation systems and ETC onboard transponders as options, and marketing their own logistics and service support systems.

Mitsubishi Fuso Total Support System This is a proprietary system developed by MFTBC and launched in 1999, and is currently used by companies such as major refrigerated haulers. An onboard computer automatically gathers data on things such as the operational status of the vehicle, position (determined by GPS), speed and fuel efficiency, and this is transmitted instantaneously by packet transmission to a control server.

This information can be monitored in real time via the Internet from terminals in offices and sales branches. In addition to vehicle management and transport quality control, this system assists operations by allowing information to be given on optimum routes and directions to be given to drivers to improve fuel efficiency, thus helping to reduce the impact on the environment.

GPS satellite

NTT DoCoMo In-vehicle terminal

DoPa

Internet Customer terminal

MAE server

Vehicle data and GPS position data transmitted to server by packet transmission

System composition

Eclipse EV and the Shikoku EV “Ekiden” Following its participation in the 2001 public road trial around Shikoku, MMC entered the Eclipse EV test prototype in the Shikoku EV “Ekiden” in the run-up to Shikoku EV Week in August 2002. The Shikoku EV “Ekiden” is an event in which each team races for the finishing post along a course of their choosing using existing recharging points, or “eco stations”, and is one of the foremost events in Japan for empirically testing the level of mobility of EVs. The Eclipse EV started out from MMC’s head office in Tokyo at 6:30 on August 22. Recharging at Hamamatsu, Kyoto and Kobe, it traveled 815km before reaching the finishing point at the EV Week main venue (at Niihama National College of Technology in Ehime) at 15:17 the following day (August 23). The Shikoku EV “Ekiden” was covered live on the Internet via MMC’s website, which showed real-time data on the Eclipse EV’s progress, such as its current position, speed and remaining battery power.

Information obtained in real time from server via the Internet : MAE Mitsubishi Automotive Engineering Co., Ltd.

Start at MMC’s head office in Tokyo

Second recharging at Kyoto station

Finish line at Niihama National College of Technology

Eclipse EV course

Notes

*11:: ITS Transport Systems *2: Intelligent VICS *1: Vehicle Information and Communication System *3: ETC *1: Electronic Toll Collection * 42



[7] Recycling Vehicle Recycling Systems in Japan and Europe (1) Japan July 2002 saw the promulgation in Japan of the End-of-Life Vehicle Recycling Law (hereafter referred to as the Automobile Recycling Law), which is scheduled to enter effect in around January 2005. The main goals of the Automobile Recycling Law are as follows: 1. Prevention of illegal dumping 2. Continued recycling and appropriate disposal of ELVs 3. Minimization of landfill disposal 4. Establishment of mechanisms ensuring fair competition based on existing recycling system

New vehicle owner

Payment

Fund managing corporation

End owner Duty to hand over, receive

ELV

Collector (registered)

(vehicle dealer or garage, etc.) Duty to hand over

ELV

Duty to hand over, receive fluorocarbons

Fluorocarbons collector (registered) ELV

Duty to hand over, receive airbag

Duty to hand over

Dismantler (licensed) ELV shell

Duty to hand over, receive shredder residue

Flow of ELVs

Reused parts, etc.

Duty to hand over

Duty to hand over, receive shredder residue

Metals, etc.

Markets for serviceable parts and useable metals, etc.

(responsible for recycling themselves or outsourcing to others)

Car manufactures and importers (approved)

Recycling fee

Bill for payment

In order to achieve these basic goals, car manufacturers and other related parties are each required to play appropriate roles. Applying the principle of “extended producer responsibility (EPR)”*1, car manufacturers are responsible under this law for appropriately removing and recycling (or destroying in the case of fluorocarbons) the fluorocarbons, airbags and shredder residue from ELVs that they themselves produced.

Automobile deregistration system (under Road Transport Vehicle Law)

Recycling is essential for reusing the resources consumed during the vehicle lifecycle, and is attracting growing interest as one of the most important fields of environmental protection activity by car manufacturers. In Japan and Europe, legislation has been introduced on vehicle recycling, clarifying the obligations of car manufacturers. In keeping with this trend, MMC/MFTBC are taking active steps to recycle its own end-of-life vehicles (ELVs) in Japan and abroad.

Flow of money

Outline of Automobile Recycling Law (Based on Government’s Materials)

Notes producer responsibility (EPR) *11:: Extended The principle that producers of products have a responsibility not only for product performance, but also for the environmental impact of products from production *1: through to disposal. This includes responsibility in relation to the environmental impact of the choice of raw materials, production processes, use and disposal. *

43


Through arrangements such as these, car manufacturers are required to achieve a target recycling rate of at least 95% from 2015. Regarding environmental pollutants, mounted bodies on commercial vehicles and motorcycles, which are not subject to the Automobile Recycling Law, firms in related industries will be taking voluntary action in parallel with measures to comply with the Automobile Recycling Law when it comes into effect. MMC/MFTBC corporate with the Japan Automobile Manufacturers Association (JAMA) in developing mechanisms for handling, for example, the depositing of the recycling fees and electronic manifest data by providing some staff from our companies.

Item

Outline

Promulgation and entry into effect

- Promulgated July 12, 2002 - To enter into effect around January 2005

Types of vehicle covered

Four-wheeled passenger vehicles and four-wheeled commercial vehicles (from mini-cars to large trucks and buses)

Requirements for car manufacturers

Cost

(2) Europe In the EU, the Directive by the European Parliament and Council on End of Life Vehicles came into effect in October 2000. In December 2002, MMC/MFTBC and DaimlerChrysler (DC) agreed to cooperate on recycling in Europe. We are working in partnership with DC to research national laws and regulations in Europe, methods of recovery and disposal of ELVs, and costs, and develop a system for efficiently and infallibly taking back ELVs.

- Collection and recycling of fluorocarbons, airbags, shredder residue - Determination and publication of recycling fees - Design and manufacture of vehicles taking account of recycling and the environment - Provision of information on the construction, parts and materials of vehicles Borne by user

Summary of Automobile Recycling Law Outline

Item

Environmental pollutants

Mounted bodies of commercial vehicles

Motorcycles

- Promotion of easy-to-recycle designs - Reduction of use of environmental pollutants - Promotion of recycling and appropriate disposal of materials difficult to recycle and process - Establishment of network of businesses participating in disposal and resource recovery Establishment of collection points and resource recovery facilities - Free collection of vehicles with recycle mark - Reduction of use of environmental pollutants

Compared with other manufactured products, a high proportion of vehicles are recycled, and the recycling rate is currently almost 75~80%. However, the remaining 20~25% is buried or incinerated as shredder residue. Because of the shortage of sites for disposal of industrial waste and the need to build a more environmentally sustainable society, further increasing the recycling rate is an important priority. Hood (steel)

ELV

Promulgation and entry into effect Types of vehicle covered

Requirements of car manufacturers

Cost

Summary of voluntary measures

Vehicle recycling at present

Outline

Item

- Publication of numerical reduction targets (for lead, mercury, cadmium and hexavalent chromium) - Applied starting with new models covered by law - R&D on alternative technologies

- Promulgated October 2000 - Anticipate enactment of legislation in EU member states in 2002-2003 - Passenger cars with seating capacity of 9 or under - Commercial vehicles with gross vehicle weight of 3.5 tons or under

- Establishment of ELV collection and recycling network - Prohibition of use of environmental pollutants (lead, mercury, cadmium, hexavalent chromium) - Recyclability rate of 95% or more

Cost borne as a rule by car manufacturers

Summary of EU ELV Directive

Vehicle dismantler

Shredding operator

Dismantling

Shredding and sorting

Engine, tires, doors, electrical parts, etc.

Nonferrous metals, battery, etc.

Recycled as used parts

Industrial waste disposal operator Shredder residue

Steel, nonferrous metals, etc.

Recycled as materials

Landfilling

50~55%

20~30%

20~25%

Present state of recycling of ELVs

auto parts and general steel products

Engine (steel, aluminum) general steel products, aluminum products Coolant (alcohol) auxiliary fuel for boilers and incinerators Wire harness (copper) copper products, etc. Battery (lead) batteries Engine oil (oil) auxiliary fuel for boilers and incinerators Radiator (copper, aluminum) brass/aluminum products

Body (steel) Doors (steel)

auto parts, general steel products auto parts, general steel products

Windows (glass)

glass wool, etc.

Seat (urethane foam, fiber)

automobile noise insulator

Trunk lid (steel)

Front bumper (plastic)

auto parts, general steep products

bumpers, internal and external fittings, tool boxes, etc.

Suspension (steel, aluminum)

general steel products, aluminum products

Tires (rubber)

Cement feedstock and fuel, etc.

Rear bumper (plastic)

bumpers, internal and external fittings, tool boxes, etc.

Wheel (steel, aluminum)

Transmission (steel, aluminum)

auto parts, general steel products, aluminum products

general steel products, aluminum products

Gear oil (oil) auxiliary oil for boilers and incinerators Catalytic converter (precious metals) catalytic converters

Recycling uses of ELVs (Both diagrams prepared from the materials produced by Japan Automobile Manufacturers Association)

44


Measures at the Research and Development Stage 3R (“reduce, reuse, recycle”) principles are actively followed in the development process right from the initial stages of vehicle development. As well as setting recyclability rates and other targets for each vehicle, we also seek to reduce the types of materials used and employ easyto-recycle materials, recycled materials and easy-to-dismantle constructions by evaluating recyclability in accordance with recycling design guidelines at the stage of designing concept of vehicles. New models from the 2002 model year, such as Colt and Canter, greatly exceed our own voluntary recyclability targets.

Voluntary-target (new models)

（%）

90

Recyclability rate

(2) Choice of materials Easily recyclable thermoplastic resin is used for most interior and exterior fittings, including the bumpers, radiator grill and instrument panel. MMC is also actively introducing the use of easily recyclable thermoplastic elastomers for the engine hood and tailgate weather strips, which have been made of rubber, which creates recycling problems.

85

80 FY2002 (Colt)

Colt recyclability rate Colt parts made from easily recyclable resin

(1) Resource recovery For Colt, active steps have been taken to make products more compact and lightweight and unification of parts used. These include using tailored blanks (see P.28) and high-tensile steel sheet for body and chassis parts, and reducing the amount of wire used in wire harnesses (24 circuits reduced). We are also expanding use of rustproof steel sheets for bodies and use of body sealer and undercoat in order to improve rustproofing. Also being developed are technologies to lengthen the life of plastic and other parts.

In order to reuse cropped ends produced during the production process, we have begun recycling bumpers and internal plastic fittings such as interior trimmings for the same uses, and have also started using cropped carpet ends for floor insulation in Colt. In addition, we have developed the world’s first canister case*1 made from cropped airbag material in collaboration with parts and material makers.

Cropped airbag material and canister case

At least 90% since end of 2000

FY1997 (Average of new models)


For the white exterior fittings of trucks that need to be both attractive and highly weatherproof, MFTBC has adopted originally colored plastic, improving recyclability due to the elimination of the need to strip paint as well as reducing emissions of paint solvents.

As a way of recycling waste materials produced in other industries, we now use recycled materials made from PET*2 drinks bottles for carpets, floor mats, engine covers, engine oil level gauges and similar parts. We also use materials made from recycled polypropylene (PP) food containers and wastepaper to make aircleaner cases. Use is additionally made of recycled PP bottle containers (such as beer crates) to make plastic parts such as truck awning.

Recycled PP food containers

Corner panel

Lower grill

White exterior fittings made from originally colored plastic

Paper tubes (waste paper)

Air-cleaner case

Air-cleaner case made from recycled PP and waste paper

Investigations are currently underway on the use of new materials that have less environmental impact, such as vegetable resins and timber substitutes.

Notes case *11:: Canister A device that temporarily absorbs the steam of the gasoline that occurs from a fuel tank. *2: PET (polyethylene terephthalate) *1: Used for drink containers, photographic film and magnetic tape, etc. *3: PP (polypropylene) * Used for film and molded products, and melted and spun into textile products.

45


(4) Labeling In order to ensure the quality of recyclable materials in the recycling process, it is necessary to separate materials into their individual categories. In addition to plastic parts of 100g or over, therefore, we have expanded marking of materials to include rubber parts. Large parts such as bumpers, meanwhile, are marked continuously lengthwise to assist when they are cut up during disassembly.

Labeling of rear combination lamp

46

(5) Reduction of hazardous substances We are continuing to make every effort to eliminate use of environmental pollutants such as lead by, for instance, developing new materials. For example, we are aggressively expanding use of lead free materials, such as lead-free glass ceramic prints and electrodeposited body paints as well as radiators, heat cores, fuel tanks, wire harnesses and hoses, in order to achieve the new targets laid down by JAMA (reduction of lead use to less than one tenth of the level in fiscal 1996 from 2006, and less than one quarter in the case of large commercial vehicles including buses) ahead of schedule. (g/vehicle) 2000 Lead use

(3) Construction MMC/MFTBC are actively making constructions easier to dismantle by, among other things, reducing the number of fastenings and eliminating connection of different materials in accordance with recycling design guidelines. Colt’s bumpers, for example, are made easier to dismantle by reducing the number of connecting bolts (4 bolts used in Colt, as compared with 6 in usual model “Mirage Dingo”) and eliminating use of sheet metal reinforcements. We are also integrating and modularizing parts, as in the case of resin intake manifolds integrating the surge tank with the resonator. In the case of Canter, MFTBC was the first in Japan to introduce headlamps that can be broken down and recycled for servicing by making lens parts detachable.

Voluntary-target (new models)

1000

0 FY1996 (Automobile industry average)

FY2002 (Colt)

Less than one tenth by 2006 (compared with automobile industry average in FY1996)

Lead use in Colt

Under the EU’s ELV Directive, use of four environmental pollutants (lead, mercury, cadmium and hexavalent chromium) is in principle prohibited. In Japan as well, therefore, MMC/MFTBC will cut use of all four substances as part of voluntary efforts under the Environmental Sustainability Plan. In Colt, only minimal quantities of mercury and cadmium are used (in parts such as fluorescent lighting), and mercury use in combination meter lighting has been eliminated by using LEDs.

Measures by Dealers (1) Proper disposal of airbags Almost all passenger cars are nowadays fitted with airbags, and, more than half of all ELVs are expected to have airbags from 2005. In 1996, in order to ensure the safe disposal of ELVs, the Japan Automobile Manufactures Association drew up a manual stipulating that airbags should be deployed prior to dismantling, and this was distributed to service shops and used car dealers. In order to further increase the quantity treated and improve the safety of disposal work, the joint development and testing of a system for removal, collection and processing of airbags was launched in 1999 in association with the Parts Industry Association, and MMC/MFTBC are also providing assistance for this project.

Consignment to suitable disposer

Proper removal of inflator and delivery to next stage

Deployment

Deployment

Outline of airbag disposal system and roles of parties concerned

(2) Collection and destruction of car air-conditioner fluorocarbons As the CFC-12 that used to be used as the refrigerant in car air conditioners destroys the ozone layer and also has an extremely strong warming effect (approximately 7,100 times that of CO2), MMC/MFTBC halted its use in production vehicles by January 1994. It has also sought to collect and recycle CFC-12 by providing all its dealers with equipment to collect and recycle CFC12. However, because of the recent spread of vehicles using the CFC substitute HFC-134a as a new refrigent, opportunities for reuse of CFC-12 have declined, resulting in far more CFC-12 being collected than can be used. As a consequence, MMC/MFTBC are working with its partners in industry to develop a system for collecting and destroying CFC12 in order to destroy the surplus, and nationwide deployment of this system was completed in October 1998.

Although the new refrigerant HFC-134a does not destroy the ozone layer, it is a greenhouse gas with a greenhouse effect some 1,300 times that of CO2. In order to prevent global warming, therefore, MMC/MFTBC have introduced the use of car air conditioners that use only minimal quantities of refrigerant (see P.37). Dealers are in addition introducing collectors to collect HFC-134a in the same way as old refrigerants in order to comply with the Automobile Recycling Law (P.43-44) and the Fluorocarbons collection and Destruction Law.

Collection of fluorocarbons

Fluorocarbons

User

Request for collection

Dealer

Collection

High-pressure gas

Fluorocarbons

Empty Empty Transporting containers Fluorocarbons containers company manufacturer Collection and transportation Destruction and disposal

Fluorocarbons collection and destruction system

Route A

Route B

Recycler

Delivery of ELV to suitable disposers and payment of share of processing costs

Concentrated processing

Routes for collection and recycling of flares

(4) Promotion of issuing of manifests Manifests are documents that clearly record the receipt of waste and identify responsibility for disposal as stipulated in the Waste Disposal Law. A vehicle that may have outlived its original purpose is not treated as waste as long as it is in economic circulation due to money changing hands (e.g. for the removal of useful parts). When disposal costs are incurred, however, the waste producer must issue a manifest to confirm the state of disposal and manage results up to final disposal under the Waste Disposal Law. MMC/MFTBC are promoting the proper issuing of manifests for ELVs and appropriate disposal of ELVs by dealers, which are not yet technically “waste” and so subject to legal requirements.

ELV manifest

End disposer (landfill site, etc.)

Proper removal of inflator and delivery to next stage

Collection agent (flare manufacturer)

Processing facilities

Disposal contractor (shredder, etc.)

Dismantlers

(3) Collection and recycling of flares In cooperation with its partners in industry, MMC/MFTBC established in April 2002 two routes for the nationwide collection and recycling of flares whose use-by-date has expired and that have been replaced by dealers.

Parts dealers

Distributors and repair shops

Collection and disposal system

Haulage contractor (dismantler, etc.)

End user

Collection and transport contractors

Processing contractors

Dealer (MMC/MFTBC)

Company registered under the system


Waste producer (dealer, etc.)


Manifest for shredder residue

Path of manifests

47


Collection and Recycling of Parts (1) Collection and recycling of bumpers In the past, the waste bumpers produced when dealers repair vehicles were shredded and disposed of in landfills. In order to reduce the amount of waste generated by dealers and to make more effective use of resources, however, MMC/MFTBC began collecting and recycling polypropylene waste bumpers replaced by dealers in May 1997. In fiscal 2002, a total of 73,520 bumpers were collected from dealers around the country (130 bumpers increased per month compared with results in fiscal 2001). The bumpers collected were processed into pellets by resin recyclers after removing impurities such as metal brackets, and recycled into auto parts by parts makers. Recycled bumper materials are presently used for a whole range of plastic parts, including battery covers, wheel house covers, center ducts, filler neck protectors, and so on.

Dealers and main repair workshops (690)

Collection contractors

(2) Use of recycled parts Some parts that have been replaced by dealers, such as engines, transmissions and power steering gearboxes, are rebuilt to make them as good as new and then sold. We are currently also looking at ways of expanding the range of parts recycled in order to meet user needs and reduce the amount of waste produced by dealers. (3) Sale of used parts As part of its efforts to promote the effective use of resources, we have launched a scheme for recycling reusable parts from ELVs around the country, sale of which began in July 2002. Customers search for recycled parts via a recycled parts network accessed at dealers, and can have their vehicles repaired using the used part of their choice if available.

Resin recyclers

Resin parts manufacturers

Examples of use

Development of Technology for Recycling of ELVs MMC/MFTBC consider the use of shredder residue as feedstock and heat for smelting plants and the use for power generation and heat by means of pyrolytic gasification*1 to offer promising ways of recycling. We are therefore conducting basic research into these and other recycling technologies. (1) Assessment of thermal recyclability of automobile plastics The plastics used in automobiles tend to contain reinforcing materials and flame retardants such as talc and glass fiber. In order to determine the thermal recyclability of such composite materials, it is vitally important to know their combustion properties. Working in collaboration with Gunma University, MMC/MFTBC are investigating the combustion properties of polypropylene-based materials containing talc and glass fiber widely used for interior and exterior fittings for vehicles, and these results are used to help assess their thermal recyclability.

Battery covers, wheel house covers, etc.

Collection and recycling of bumpers (1,000 bumpers) 80

60

40

20

0

1998

1999

2000

2001

Number of bumpers collected

2002 (FY)

Examples of use: center duct (left), filler neck protector (right)

Notes gasification *11:: Pyrolytic A process whereby waste is “baked” in a low oxygen environment to inhibit the generation of dioxins and separate the waste into gas and solids * (which are in a charcoal-like state). The gas can be used for energy, while the metals contained in the solids can be recovered without oxidizing them.

48



[8] Environmental Protection in the Office (2) Basic research on decomposition of automobile shredder residue MMC/MFTBC are engaged in research into technologies for decomposing and reusing vehicle shredder residue. So far, basic research has been conducted into the combustion and decomposition properties of shredder residue decomposed using super critical water.*1 As vehicle shredder residue contains substances with varying properties, such as inorganic and organic substances, there arises the problem that reactions cannot be controlled to keep conditions optimal for individual substances recycled by means of chemical processes. Processing using supercritical water allows organic substances to be efficiently breakdown under high-temperature and high-pressure conditions, offering an attractive means of decomposing substances that are difficult to process. However, satisfactory results have not yet to be obtained decomposing and converting to oil vehicle shredder residue that still contains a variety of substances. Trials using all kinds of catalysts have yielded improvements, such as a slight improvement in the oil conversion rate, but the clear separation of organic substances and metals presently remains difficult. In the future, we will continue to develop technologies to reduce the environmental impact of automobile recycling, with the focus being on how to rethink the design of automobiles made using materials with various properties to make them more amenable to recycling.

Measures to Conserve Resources and Energy Energy saving activities, such as reduced use of fluorescent lighting and switching off of lighting during lunch breaks, are now firmly established throughout the whole company, and MMC/MFTBC aim to make further improvement by, for example, choosing more efficient equipment when taking out new leases on office equipment. We are also curbing the use of office paper within the group by cutting paper use through office automation and encouraging the use of the reverse side of used paper. （t） 400

351.8

300

Promotion of Green Purchasing Purchase of environmentally friendlier products is encouraged. One example of this is the purchase and use of refillable toner cartridges for fax machines and printers. MMC/MFTBC are also a member of the Green Purchasing Network (P.19), providing us with access to information on recyclable products and contributing to green purchasing. Another way we are helping is through our involvement in a program run by King Jim Co., Ltd. to collect used tape cartridges for the TEPRA*2 label writer. The head office district has taken part in this activity since April 2001, and other offices participate recently.

304.3

200

81%

96%

2001

2002

100 0

(FY)

In-house paper use and rate of use of recycled paper

Environmental design of new head office building In May 2003, MMC/MFTBC moved their head office to Shinagawa Mitsubishi Building. As well as making efficient use of space, this building was designed to be environmentally friendly in other ways. Some of the measures taken include: - Automatic control of lighting and blinds using sunlight sensors - The area air-conditioning powered by a cogeneration system - Effective use of recycled wastewater and rainwater - Provision of space for separate collection of waste

Collection boxes for segregated waste disposal

New head office building (Shinagawa Mitsubishi Building)

Notes critical water *11:: Super Water of at least a temperature of 374 C and pressure of 22.1MPa. It has the ability to rapidly dissolve organic matter, but requires plant technology *1: and energy in order to maintain the high temperature and pressure required for operation. *2: TEPRA *1: TEPRA is a Japanese registered trademark of King Jim Co., Ltd. * o

49

Social Activities

Social Activities

Relations with Customers

Relations with Customers Making Barrier-Free Products Contribution to the Local Community Sports Employee-Related Activities

P. 5 0 P. 5 2 P. 5 3 P. 5 4 P. 5 5

Automobile Information Service for Schoolchildren Every year since 1993, MMC has provided an automobile information service for schoolchildren. This takes toll-free calls and also handles inquiries sent by letter and postcard regarding MMC and the automobile industry. Fiscal 2002 marked the tenth year of the program, which lasted from July 22 to November 30. MMC is the only company in the auto industry to offer such a specialist information service for schoolchildren. It has proved a hit with children and teachers alike, and we are flooded every year with notes of thanks and reports from children who made use of the service. We have also launched a page providing information especially for children, called “Heart-Beat KIDS Information for Children”, on our website in order to provide greater access to information. This was expanded and relaunched in 2002 with the addition of the “All You Wanted to Know about Automobile Manufacturing” page. Using illustrations and written in simple language, this answers some of the most commonly asked questions received by the Automobile Information Service for Children.

Schoolchildren’s information service homepage (http://www.mitsubishi-motors.co.jp/KIDS/)

In 2002, while the number of phone calls and letters received fell (from 306 to 158), the number of website hits doubled. This is thought to be due to a combination of the website’s renewal plus the shift in inquiries from schoolchildren to web-based queries due to the expansion of IT education at elementary schools. 200,000

168,218 150,000

100,000

73,240 50,000

0

2001

2002

Among other activities designed to increase children’s knowledge of the automobile industry, MMC has also produced a simple, educational pamphlet, entitled “Konnichiwa, It’s Mitsubishi Motors”, providing a simple introduction to the automobile industry, for distribution to local elementary schools through dealers.

An educational pamphlet “Konnichiwa, It’s Mitsubishi Motors”

Customer advice center The following customer advice centers have been established to provide single company-wide points of contact for inquiries. Subject of inquiries

50

(FY)

Website hits

National toll-free number

Service hours(excluding scheduled holidays)

MMC and passenger cars

0120 - 324 - 860

Mon-Fri: 9：00∼18：00 Sat / national holidays: 9：00∼12：00 / 13：00∼17：00

MFTBC and trucks / buses

0120 - 324 - 230

Mon-Fri:

9：00∼12：00 / 13：00∼17：00

Social Activities

Safe Driving MMC continues to provide basic knowledge and information on safe driving through its website and pamphlets distributed by dealers.

Mitsubishi Fuso Summer Painting Competition A regular summer event is the Mitsubishi Fuso Summer Painting Competition for preschool children. Every year, the competition attracts a huge number of lively and imaginative entries from children around the country. The 24th competition in 2002 attracted a total of 68,262 entries from 948 preschools. Each and every entry was carefully judged, and prizes were awarded for 88 entries: 3 first prizes, 5 second prizes, 10 third prizes, and 70 runners-up prizes.


Free Live Concerts In the showroom at head office, MMC plays occasional host to “Heart-Beat Live” concerts. These free live concerts featuring music of all genres have proved a hit with ordinary customers. A total of 10 events were held in fiscal 2002.

Information on the MMC website

Pamphlets

To promote driving course, MMC also runs a snow driving school (held 19891998 and 2001-2002) to provide training on safe and comfortable driving in snowy conditions.

Three winning entries for the 24th competition

Mitsubishi Auto Gallery The Mitsubishi Auto Gallery was established at MMC’s Passenger Car R&D Center in Okazaki City, Aichi Prefecture, in 1989 to give ordinary customers as well as employees the opportunity to learn about the various passenger cars produced by MMC and their development over the years right up to the present, starting with the Mitsubishi Model A first made in 1917. Since opening, the gallery has attracted over 150,000 visitors. Among the exhibits on display at the gallery, which covers an area of some 1,100 square meters, are engines, information and drawings of famous groundbreaking vehicles of their time, epoch-making models, and racing cars from the world of motor sports. Overall, the gallery provides an easy and interesting introduction to the history of Mitsubishi passenger cars and the concepts underlying the manufacture of passenger cars right down to the high-performance models of today. Please apply for admission before your visit. Inquiries and admission reservations Development Planning Department Research & Development Office MITSUBISHI MOTORS CORPORATION 1, Nakashinkiri, Hashime-cho, Okazaki, Aichi 444-8501, Japan TEL:0564-32-5203 Opening hours

08:15 - 17:15

Closed

Sat / Sun (also consecutive holidays in May, August and over the New Year period)

67 51

Social Activities

Making Barrier-Free Products The motorcar has broadened the horizon of human activity, and is now increasing the mobility of the elderly and physically handicapped. Population aging and the establishment of legislation such as the Long-Term Care Insurance Law*1 and the Barrier-Free Traffic Law*2 are expanding demand for vehicles for people with limited mobility. To meet this demand, car manufacturers are increasing their model and specification ranges to broaden user choice. As a result, sales are growing strongly by the year. MMC/MFTBC have varied lineups of welfare vehicles, ranging from mini-cars to large buses, which are helping to create a barrier free society. 40,000 35,000

Mini-cars Buses Small cars

8,868 7,880

Vehicles per FY

30,000

4,075 20,000 15,000

0

2,932

3,698

2,462 1,938 2,231

10,000 5,000

4,411

5,313

25,000

“Hearty Run” Series MMC’s range for the mobility impaired goes under the name of the “Hearty Run” series, which consists mostly of passenger cars. The name “Hearty Run” was coined to embody the concept of driving in close companionship with others. MMC has an outstanding lineup of cars that have been specially modified to meet the varied needs of users such as the physically disabled due to illness or injury who depend on wheelchairs to get around, and those such as the elderly who find it difficult to walk and get in and out of vehicles. In May 2002, eK Wagons with moving and revolving passenger seats to help users get in and out of vehicles were added to the lineup. This was followed in December the same year by the launch of a revolving passenger seat version of the Colt.

17,774

20,760

22,206

24,517

12,379

1998

1999

2000

2001

2002 (FY)

Domestic sales of welfare vehicles (Prepared from data published by the Japan Automobile Manufacturers Association)

To allow users to see vehicles and equipment at firsthand, MMC has permanent showrooms and takes an active part in events around the country such as exhibitions and test-driving events. Permanent showrooms

Locations

Mitsubishi Auto Garden Tama Barrier Free Lounge

1-16-1 Karakida, Tama-shi, Tokyo

Mitsubishi Auto Garden Osaka Barrier Free Lounge

7-20-1 Fukushima, Fukushima-ku, Osaka

29th Home Care and Rehabilitation Exhibition (September 2002) For further details of Hearty Run series, please visit the homepage (http://www.mitsubishi-motors.co.jp/ japan/heartyrun/).

Wheelchair model

Possible to get in and out while in a wheelchair

Boarding assistance model

Revolving passenger seat model

Fitted with passenger seat that rotates and slides out from the car to make getting in and out easier

Moving passenger seat model

Fitted with electrically-powered passenger seat that rotates and slides in and out of the vehicle to make getting in and out easier

Outline of Hearty Run series

Minicab wheelchair model

Colt revolving passenger seat model

Notes Care Insurance Law *11:: Long-Term Law establishing standards on care need and service provision and detailed provisions on public long-term care insurance. Entered effect in April 2000. *2: Barrier-Free Traffic Law *1: Known officially as the Law on Promoting the Facilitation of Movement by the Elderly and Physically Handicapped, etc. Using Public Transport. *1: Entered effect in November 2000. *

52

Social Activities


Contribution to the Local Community Low-Floor Buses Demand for low-floor buses accessible to all is spreading since the introduction of the Barrier-Free Traffic Law. Starting with the launch of Japan’s first large low-floor bus as “Non-Step Bus” in 1997, MFTBC has sought to encourage the spread of low-floor buses. In April 2002, Japan’s first small low-floor bus in the two-meter width class, the Aero Midi ME, was launched, filling the last gap in the lineup of small to large Fuso NonStep Buses. This was followed in November the same year by the launch of the Aero Midi MK Non-Step Bus.

Coexistence with local residents and community groups MMC/MFTBC’s plants seek to maintain close and harmonious ties with local residents through the activities below. Factory tours

- Tours open to local residents, schools and families of employees, etc. (all plants) Total participants: 22,820 (FY2002)

Cooperation with schools - Baseball school held once a year for junior high schools in the city (Nagoya Plant-Okazaki) - Provision of instructors to high schools (Powertrain Plant) - Work experience for junior and senior high school students, etc. (Mizushima Plant) - Donation every year of varicolored carp raised at plant on treated wastewater to elementary schools (Mizushima Plant)

Opening of company facilities to the public - Gyms and sports grounds, etc. opened to the public (all plants) - Culture fairs and “thank you” events (Kawasaki Plant)

Promotion of road safety - Donation of equipment such as convex traffic mirrors to promote road safety (Nagoya Plant)

Participation in local neighborhood associations Sponsorship of festivals and other events Participation in and donation to environmental and other groups

The Mizushima Plant has in addition launched a website to provide information. Factory tour reservations can also be made online.

Mizushima Plant website (http://www.mitsubishi-motors.co.jp/mizushima/)

Community Cleanup and Tree-Planting Activities All plants organize their own cleanup activities to clean up nearby public roads and rivers (such as the Yahagi River, Tenjin River and Takahashi River), or take part in cleanup campaigns organized by local governments, in order to keep local communities clean. The Kawasaki Plant in addition takes part in flower-planting and floral campaigns run by Kawasaki City, and helps promote green town development.

Aero Midi ME Positioned in wheelchair area

Rear display

Side display

Marking on body

Stop button

External display External display

Wheelchair accessible sticker in wheelchair area

Handrail Horizontal handrail in wheelchair area

External display Front display

Handrail Vertical handrail in wheelchair area of movement Internal display Indicator showing next stop

Width of wheelchair aisle 810mm

Wheelchair access device

Entry step Edged in yellow

Ramp

Height of entry from ground 335mm Marking on body

810mm wide entry

Provision of wheelchair space 1300 × 750mm Wheelchair retainer

Wheelchair accessible sticker External speaker (for buses boarded from front)

Height of exit from ground 295mm

Contribution to communities in Thailand The Thailand Environment Institute (TEI) runs a project to protect elephants in the Kaeng Krachan National Park, which is home to around 180 elephants. To support this project, MMC’s Thai affiliate, MMC Sittipol Co., Ltd. (MSC), has established the MMC Jumbo Fund. MMC and MSC have also donated a Strada G-Wagon to the TEI.

Aero Midi ME Barrier Free Traffic Law compliance measures

53

Social Activities

Sports Motor Sports MMC takes part in a number of internationally famous rallies such as the Paris-Dakar rally and the World Rally Championship (WRC), where it takes on other car manufacturers in a spirit of friendly rivalry. These rallies push cars to the limits and lead to the evolution of new and improved technologies, providing spinoffs for ordinary production vehicles and thrilling motor sport fans around the world. MMC is therefore committed to staying at the top of the sport. (1) Paris-Dakar rally The Paris-Dakar rally across the African continent is famous for requiring greater durability and reliability than any other motor sport event. Since first competing in 1983, MMC has continued to enter this spectacular adventure rally, and has won the overall crown on eight occasions in all.

(2) World Rally Championship (WRC) Regarded as the pinnacle of motor sports alongside F1 Grand Prix racing, the World Rally Championship attracts huge interest worldwide. MMC won the Drivers Championship for four years in succession from 1996, and in 1998 also won the Manufacturers Championship. In the Group N class for production cars, MMC won the Drivers Championship for seven years on the trot from 1995 to 2001. In order to restructure its racing setup, MMC will be taking a break from the 2003 season, but will return in 2004.

Other Sports (1) Soccer In 1990, MMC took over the running of Mitsubishi Heavy Industries’ soccer team, which was relaunched as the Mitsubishi Motors Soccer Club. To coincide with the launch of the J-League, Japan’s professional soccer league, MMC also established Mitsubishi Motors Football Club Co., Ltd. in 1992 to manage the Urawa Red Diamonds, a professional soccer team in Japan.

(3) Participation in other major motor sport events Overseas

Cross-Country Rally World Cup Asia-Pacific Rally Championship

Japan

All Japan Rally Championship All Japan Dirt Trial Championship All Japan Gymkhana Championship Super Endurance Series

Mitsubishi wins the 25th Paris-Dakar rally to take crown for third successive time The 2003 Dakar rally (known officially as Telefonica-Dakar 2003 and more commonly as the Paris-Dakar rally) began in Marseille, France on January 1, 2003, and finished 18 days and 8,600km later in Sharm El Sheikh, Egypt, on January 19. The overall winner was Hiroshi Masuoka driving the Mitsubishi Pajero Evolution. Masuoka covered a total of 5,257km over 16 stages in an overall time of 49 hours 8 minutes 52 seconds to win the race for the second time in succession, making him the fourth driver in the 25-year history of the ParisDakar to win the race twice and the first Japanese to do so. The victory was the eighth for MMC since first participating in 1983. As in the previous year, the Mitsubishi team made it a clean sweep, taking second, third and fourth places overall as well.

C T.YAMAZOE

(2) Baseball MMC/MFTBC’s baseball teams frequently represent their blocks in the Intercity Baseball Tournament, and the Kawasaki Team won the 2000 tournament. The teams have also produced players who have gone on to represent Japan in the Olympics and play in professional teams, making an important contribution to the development of Japanese baseball. Sponsorship of Sports Events For example, MFTBC has sponsored the Miura International Citizen Marathon as a special sponsor since 1989, and MMC has supplied vehicles for a long-distance relay race event “Hakone Ekiden”.

Mitsubishi Pajero Evolution driven by overall winner Hiroshi Masuoka Miura International Citizen Marathon

54

Social Activities


Employee-Related Activities Health and Safety (1) Occupational safety In order to maintain health and safety in the workplace, we continue to pursue activities to prevent occupational accidents in line with the basic principle that safety comes above all else. MMC/MFTBC are endeavoring to eradicate accidents of all kinds, including those resulting in minor injuries as well as lost-time and non-lost-time injuries, and our ultimate aim is to completely eliminate accidents. As the graphs below show, frequencies of injuries (frequency rate*1) at MMC/MFTBC are fewer than the average in manufacturing and the automobile industry in general. In order to combat the upward trend in recent years in the number of accidents, however, safety measures are being strengthened and more rigorously enforced. : MMC/MFTBC : Automobile industry average

1.5

1

20

▲

▲

10

0

1998

1999

▲ ▲

2000

▲

2001

0.5

2002 (FY)

Frequency rate (line graph)

Number of injuries (bar graph)

30

(2) Road safety In order to seek to eradicate traffic accidents involving employees, safe driving courses are offered, general inspections made of vehicles used by employees to commute, and hazard awareness tests given to new employees. To contribute to greater information sharing and help raise safety awareness, moreover, employees are also required to report any traffic accidents in which they are involved. (3) Positive health Based on the principle that the individual should take responsibility for keeping healthy, we continue to offer various programs to promote positive health and fitness. These include voluntary health monitoring and positive health campaigns, general health consultations provided by hygienists and dietitians in the workplace, guidance on lifestyle-related diseases based on the results of medical check-ups, and physical strength tests. Category of activity

Safety management

0

Injuries at MMC/MFTBC

Frequency rate

1.5

: MMC/MFTBC : Automobile industry average : Manufacturing average

1

Road safety

Sanitation

0.5

Other activities 0

1998

1999

2000

2001

2002 (FY)

Lost-time injuries at MMC/MFTBC

(4) Mental health Employees are given easy access to advice on mental health matters from psychiatrists and counselors, and an externally provided health advice telephone service. As part of management training, we also provide instruction on the basics of stress and mental health, and methods of assisting people returning to their former posts. Personnel System As part of the Turnaround Plan, MMC/MFTBC are reforming its personnel structure. What this means in concrete terms is the sweeping away of the seniority-based structure based on experience and past performance, and a shift instead to an emphasis on current performance in personnel evaluation, promotion and pay. The new performancebased personnel system was introduced for management from April 2002, and was expanded to cover all ordinary employees (non-managerial class) in April 2003.

Priority focus

Details

(1) Eradication of unsafe behavior

- Enforcement of safety duties of managing supervisors - Thorough education in safety fundamentals (rules and behavior) - Promotion of safety dialogue

(2) Comprehensive prevention of similar accidents

- Proper implementation of steps to prevent similar accidents

(3) Continuous improvement of intrinsic safety of equipment

- Improvement of safety of existing/remodeled equipment and new/transferred equipment - Promotion of voluntary and regular inspections of mechanical equipment

(4) Guidance on safety management for onsite partners, etc.

- Support for council activities and safety activities of individual companies

(1) Thoroughgoing steps to prevent road traffic accidents

- Thorough guidance on road safety, including safety in employees’ private lives - Thorough prevention of onsite vehicle accidents

(1) Promotion of clean and comfortable working environment

- Promotion of improvement of work and working environment

(2) Promotion of measures to prevent diseases and promote positive health

- Promotion of mental health - Active promotion of activities to prevent diseases

(1) Fire prevention

- Thorough onsite fire control

(2) Promotion of health and safety measures for employees sent overseas

- Promotion of health and safety management before dispatch and at destination

(3) Switch to health and safety management system

- Promotion of establishment of management system in the workplace

Health and safety measures

Notes rate *11:: Frequency The frequency rate is the number of industrial injuries per million hours worked, and indicates the frequency of injuries. *1: (Frequency rate = number of industrial injuries / total hours worked _ 1,000,000) *

55

Appendix Environmental Data on New Models

Colt

Model name

Lancer Cargo

Launch

November 2002

December 2002

Types Standard/ Casual Version/ Elegance Version

Standard/ Sport Version/ Sport-X Version

Seating capacity UA-Z25A

Model

Engine

UA-Z27A

UA-Z28A

UB-CS2V

4G15 MIVEC

4G15

1.343

1.468

1.468

Type

DOHC 16V 4 cylinders

SOHC 16V 4 cylinders

Fuel

Unleaded regular gasoline

Unleaded regular gasoline

ECI multi (electronically controlled)

ECI multi (electronically controlled)

Fuel supply system Max. output (net) (kW(PS)/rpm) Max. torque (Nm(kgm)/rpm)

Drive train

UA-Z26A

E/ G

2〈 5 〉

4G19 MIVEC

Displacement (L)

Drive system

66（90）/ 5600

72（98）/ 6000

66（90）/ 5250

121（12.3）/ 4250

132（13.5）/ 4250

133（13.6）/ 3750

2WD

4WD

2WD

Transmission

Fuel consumption rate

Exhaust emissions

2WD

4WD

5M / T

CVT

4A / T

1010/1030

1090/1100

1020/1030

1100

1130

1160

1250

10-15 mode fuel efficiency (km/Ე)

20.0/18.4

17.4

18.0

17.0

16.0

15.8

14.0

CO2 emission (g/km)

118/128

136

131

139

147

149

168

Compliant with 2010 new fuel efficiency standard

Compliant with 2010 new fuel efficiency standard

U-LEV gasoline passenger car

U-LEV

CO

0.67

0.67

HC

0.02

0.02

NOx

0.02

0.02

PM

----

----

Meets 1998 standard (76dB-A during acceleration)

Meets 1998 standard (76dB-A during acceleration)

Type of refrigerant

HFC134a

HFC134a

Refrigerant use (g)

550

550

JAMA 2005 target (1/3rd level in1996) attained

JAMA 2005 target (1/3rd level in1996) attained

Bumpers, instrument panel, interior trims, radiator grille, etc.

Bumpers, hood weather strips, instrument panel, interior trims, etc.

Sound absorbing materials, engine oil level gauge

Air cleaner case, resonator, sound absorbing/proofing materials, etc.

Additional data Legally required level

10-15 mode limit (g/km)

Noise compliance level

Air conditioner

4WD

CVT

Gross vehicle weight (kg)

Environmental information

E /G

5

Vehicle models

Lead use

Parts made from easy-to-recycle materials

Use of recycled materials

Environmental data on main models can be found at MMC’s website (http: // www.mitsubishi- motors.co.jp / ECO/ ).

56

E /G

Appendix ■ ENVIRONMENTAL SUSTAINABILITY REPORT 2003

Main Business Establishments and Affiliates June, 2003

MMC

Business establishments Head Office

2-16-4, Konan, Minato-ku, Tokyo 108-8410, Japan

(03)6719-2111

Research and Development Office

1, Nakashinkiri, Hashime-cho, Okazaki, Aichi 444-8501, Japan

(0564)31-3100

Tokachi Proving Ground

9-3, Otofuke-cho, Kato-gun, Hokkaido 080-0271, Japan

(0155)32-7111

Tama Design Center

1-16-1, Karakida, Tama, Tokyo 206-0035, Japan

(0423)89-7307

Okazaki

1, Nakashinkiri, Hashime-cho, Okazaki, Aichi 444-8501, Japan

(0564)31-3100

Oye

2, Oye-cho, Minato-ku, Nagoya, Aichi 455-8501, Japan

(052)611-9100

Kyoto

1, Uzumasa, Tatsumi-cho, Ukyo-ku, Kyoto 616-8501, Japan

(075)864-8000

Shiga

2-1, Kosunamachi, Kosei-cho, Koga-gun, Shiga 520-3212, Japan

(0748)75-3131

Mizushima Plant

1-1, Mizushima Kaigandori, Kurashiki, Okayama 712-8501, Japan

(086)444-4114

Head Office

2-16-4, Konan, Minato-ku, Tokyo 108-8285, Japan

(03)6719-4601

Research and Development Office

10, Okura-cho, Nakahara-ku, Kawasaki, Kanagawa 211-8522, Japan

(044)587-2000

Kitsuregawa Proving Ground

Nagoya Plant Powertrain Plant (former Kyoto Plant)

MFTBC

Telephone

Address

Production Plant

4300, Washijuku, Kitsuregawa-cho, Shioya-gun, Tochigi 329-1411, Japan

(028)686-4711

Kawasaki

10, Okura-cho, Nakahara-ku, Kawasaki, Kanagawa 211-8522, Japan

(044)587-2000

Nakatsu

4001, Nakatsu Aza Sakuradai, Aikawa-cho, Aiko-gun, Kanagawa 243-0303, Japan

(0462)86-8111

Oye

3998-16, Aza Minami, Motohoshizaki-cho, Minato-ku, Nagoya, Aichi 455-0025, Japan

(052)611-9155 April, 2003

MMC

Main affiliates

Location

Ownership

Capital

Mitsubishi Automotive Engineering Co., Ltd.

Kawasaki City, Kanagawa

Development and design of vehicles and parts

100%

450m

MMC Computer Research., Ltd.

Okazaki City, Aichi

Computer development related work

100%

30m

Pajero Manufacturing Co., Ltd.

Kamo-gun, Gifu

Manufacture of Pajero, die-cast and sheet metal parts

100%

610m

Mizushima Industries Co., Ltd.

Kurashiki City, Okayama

Manufacture of light special purpose vehicles and vehicle parts

100%

64m

Ryowa Sheet Metal Processing Co., Ltd.

Chiryu City, Aichi

Manufacture of sheet metal parts (doors, hoods, etc.)

100%

150m

Mitsubishi Motors Training Center Co., Ltd.

Okazaki City, Aichi

Center for car mechanic training and domestic and overseas repair and servicing skills training

100%

750m

Mitsubishi Automotive Techno-Service Co., Ltd.

Shinagawa-ku, Tokyo

Servicing of new passenger cars, diesel engine recycling

100%

400m

MMC Test and Drive Corporation

Okazaki City, Aichi

Test driving, measuring and servicing of test vehicles

100%

50m

Ralliart Inc.

Minato-ku, Tokyo

Participation in and support for motor sports

100%

54m

Mitsubishi Auto Credit-Lease Corporation

Minato-ku, Tokyo

Credit services, car rental, leasing

43.25%

960m

Mitsubishi Automotive Logistics Co., Ltd.

Minato-ku, Tokyo

MMC International Corporation

Minato-ku, Tokyo

JIN, Inc.

Minato-ku, Tokyo

Original contractor for transport of finished vehicles for domestic and export markets Vehicle and parts export procedure agency and technical translation services Education and training services relating to corporate personnel development

USA

Manufacture, import and marketing of vehicles and collection of related information

Netherlands Car B. V.（Ned Car）

Netherlands

Manufacture of vehicles

Mitsubishi Motors Europe B. V.（MME）

Netherlands

Overall control of European facilities

Mitsubishi Motors North America,Inc. （MMNA）

Mitsubishi Motors Philippines Corp.（MMPC） Philippines

MFTBC

Line of business

75%

300m

100%

40m

100%

11m

100%

US$811.6m

85%

EUR1,214m

100%

EUR1,283m

Import, assembly and marketing of vehicles

51%

Pesos1,640m

5.3%

Asian Transmission Corporation（ATC）

Philippines

Assembly of engines and transmissions, etc. for vehicles

MMC Sittipol Co., Ltd.（MSC）

Thailand

Mitsubishi Motors Australia Ltd.（MMAL）

MMPC80%

Pesos350m

Manufacture, import and marketing of vehicles

99.91%

Baht16,145m

Australia

Manufacture, import and marketing of vehicles

100%

A$279m

Mitsubishi Automotive Techno-Metal Corporation

Nihonmatsu City, Fukushima

Manufacture and machining of cast/forged products

100%

1,940m

Mitsubishi Automotive Bus Manufacturing Co., Ltd.

Nei-gun, Toyama

Bus body mounting

100%

6,400m

Pabco Co., Ltd.

Ebina City, Kanagawa

Truck mounting (decks, van bodies, etc.)

100%

600m

USA

Import and marketing of trucks

100%

US$10m

Portugal

Import, assembly and marketing of commercial vehicles

99.66%

EUR7.5m

Mitsubishi Fuso Truck of America,Inc. （MFTA） Mitsubishi Trucks Europe（MTE）

257

Appendix

Plant Report Technical terms used in tables

ordinances and environmental protection agreements applied to these plants. In the case of emissions into the atmosphere, maximums are shown. Shown in following PRTR tables, type 1 designated chemicals whose annual use is below 1 ton per year are not included.)

On the following pages data can be found on the state of emissions regarding the main indicators of air and water quality and use of substances covered by the PRTR system at each of MMC/MFTBC’s plants in fiscal 2002. (The limits shown are the strictest laid down under the various laws,

NOx SOx BOD COD SS ND

Nitrogen Oxide Sulfur Oxide Biochemical Oxygen Demand Chemical Oxygen Demand Suspended solids in water Not detectable

MMC Nagoya Plant (ISO14001 certified: November 1998) Okazaki Plant

The water

The air Substances

NOx

Dust

Equipment Small boiler

Unit ppm

Boiler

1, Nakashinkiri, Hashime-cho, Okazaki, Aichi

Established

1977

Total site/ building area

425,000/140,000m2

Dioxins

Substances

Regulation Unit mg/Ე 10 mg/Ე 10

Max.

Min.

Average

8.0

1.5

3.4

8.8

4.2

6.1

10

2.0

1.0

1.0

mg/Ე

2

1.5

0.5

0.6

60

8.6

5.0

7.0

120

45

BOD

ppm

100

70

COD

Oven

ppm

250

64

SS

mg/Ე

Incinerator

ppm

200

100

Oil

Small boiler

g/m N

0.1

0.003

Total nitrogen

mg/Ე

Boiler Oven

g/m3N g/m3N

0.1 0.1

0.002 0.008

Total phosphate

mg/Ე

8

1.4

0.03

0.3

Copper

mg/Ე

0.5

0.01

0.01

0.01

Incinerator

g/m3N

0.1

0.095

Zinc

mg/Ე

1

0.12

0.02

0.05

wt%

1

0.003

Manganese

mg/Ე

3

0.5

0.1

0.2

g-TEQ/m3N

10

0.4

Total chrome

mg/Ე

0.1

0.02

0.02

0.02

Lead

mg/Ე

0.1

0.005

0.005

0.005

3

SOx (sulfur rate in fuel) Address

Regulation Actual value

Incinerator

Substances covered by PRTR (Unit: kg/year) Emissions Movements Public water Sewerage system Waste Air 0 24 0 975

Substance no.

Substance name

Quantity used 7,927 9,916

0

0

0

6,322

0

0

66,373

25,997

Recycled

Eliminated Consumed

0

0

6,928

297

0

10

9,609

0

122

0

4

6,196

0

0

0

0

0

40,376

Employees

1,800

1 9

Main products

Passenger cars

30

Zinc compounds (water-soluble) Bis (2-ethylhexyl) adipate Bisphenol A type epoxy resin

40

Ethylbenzene

43

Ethylene glycol

195,775

0

0

0

0

0

0

195,775

63

Xylene Ethylene glycol monoethyl ether acetate

501,957

124,747

0

0

2,004

991

180,903

193,312

1,076

1,065

0

0

0

0

11

0

Toluene

601,425 1,346

76,291 0

0 1

0 0

6,474 41

4,282 0

211,105 0

303,274 1,304

Production process

Stamping, welding, painting, assembling, resin forming

101 227 230

Lead and its compounds

232

Nickel compounds

1,303

0

12

0

636

0

0

655

299

Benzene Manganese and its compounds

16,775

136

0

0

0

0

0

16,638

311

Total 179

Oye Plant

Dioxins (g-TEQ/year)

2,376

0

118

0

782

0

0

1,475

1,412,570

228,236

115

0

11,331

5,273

392,032

775,543

0.169

0.040

0.000

0.000

0.129

0.000

0.000

0,000

The water

The air Substances Equipment NOx Dust

Incinerator*

Unit ppm

Gas turbine Incinerator*

Dioxins

68

BOD

ppm

39

37

SS

g/m3N

0.4

0.051

g/m N wt%

Incinerator* ng-TEQ/m3N

Established

1920


177,000/136,000m2

Employees

100

Main products

Rear axle

Production process

Machining

58

Regulation

Max.

Min.

Average

20

19.0

1.6

6.2

20

18.0

2.0

6.2

mg/Ე

5

1.5

0.5

0.7

0.04

0.007

mg/Ე

60

9.0

3.6

6.4

0.05

0.003 ---

Total phosphate Copper

mg/Ე

8

0.4

0.1

0.2

mg/Ე

1

0.01

ND

0.01

Zinc

mg/Ე

5

0.11

0.03

0.07

Total chrome Lead

mg/Ე

2

ND

ND

ND

mg/Ე

0.1

ND

ND

ND

Manganese

mg/Ე

10

ND

ND

ND

10

* 2, Oye-cho, Minato-ku, Nagoya, Aichi

Unit mg/Ე mg/Ე

Oil Total nitrogen

Relegated to another company since July 2002

Address

Substances

74

3

Gas turbine SOx (sulfur rate in fuel)

Regulation Actual value

Substances covered by PRTR Substance no.

Substance name

Quantity used

179

Dioxins (g-TEQ/year)

0.063

Emissions Movements Public water Sewerage system Waste Air 0.048 0.000 0.000 0.015

Recycled 0.000

Eliminated Consumed 0.000

0.000

Appendix ■ ENVIRONMENTAL SUSTAINABILITY REPORT 2003

MMC Powertrain Plant (former Kyoto Plant) (ISO14001 certified: November 1998) Kyoto Plant

The air

The water

Substances Equipment

NOx

Dust Address

1, Uzumasa, Tatsumi-cho, Ukyo-ku, Kyoto

Established

1944


299,000/259,500m2

Employees

2,400

Main products

Passenger car engine

Production process

Casting, machining, assembling

Heating furnace Oven

Dioxins

2-1, Kosunamachi, Kosei-cho, Koga-gun, Shiga

Established

1979


172,800 / 64,000m2

Employees Main products

500 Passenger car engine

Unit

Regulation

Max.

Min.

BOD

mg/Ე

25.0

1.0

7.1

COD

mg/Ე

600 ---

15.0

10.8

69

SS

mg/Ე

600

8.0

5.0