McEniry on offensive

Mitsubishi's chief executive Rob McEniry used much of the marque's allotted time on the official opening day of the Australian International Motor Show last week to go on the offensive.

And though (almost) a week is a long time in automotive news, the importance of the company to local manufacturing's critical mass means it would be remiss if CarPoint didn't document the event.

Rebutting an ABC TV report that claimed Mitsubishi was planning to close its Australian manufacturing operations, McEniry went on the front foot at AIMS, with the support of a crowd made up mainly of automotive industry members.

He confirmed Mitsubishi had no plans to close the Tonsley Park (SA) facility and that further, the national broadcaster had directly attacked the integrity of the company and its management team.

The latest airing of the rumours occurred in the lead up to the show on ABC TV's The 7.30 Report. The story, based on a leaked document which the ABC purports is Mitsubishi Australia's plant closure plan, was aired in September and disclaimed by Mitsubishi.

According to Mitsubishi sources, the document contains scenarios prepared by an external consultant as part of a risk management process. The scenarios and proposed policies within it were rejected by Mitsubishi management as "out of hand", McEniry said.

The ABC said the document dubbed "Project Phoenix" set out three possible dates for closure of Mitsubishi's Tonsley Park plant: February or October 2007, or March 2008.

It also said an announcement would be made just four months before the closure date, and the company would create the illusion of business as usual by continuing to place small orders for stock until one month before closure was announced.

Mr McEniry was visibly angry at the AIMS opening and used his speech to deny Mitsubishi planned to close down its facilities and put the ABC on notice.

"Let me then be clear," McEniry said after referencing the ABC's claims. "There is no plan, there is no decision, to cease manufacturing at the Tonsley Park plant. Period. Our statement to the media yesterday reaffirms this; our letters to the employees and dealers say it again -- no plan, no decision."

McEniry continued: "Our calls to government and unions again stress the same fact -- there is no decision to cease manufacturing in Australia."

"I do not know how many times we have to say it -- last month, then at the Paris motor show, then again yesterday and again today… All from  the same story source."

"What upset me, what annoyed me, what infuriated me most of all about the ABC's report is that it cast doubt on our integrity," McEniry fumed.

"I will not accept such innuendo and I will vigorously defend the management's integrity and credibility; individually and collectively," he said.

Mr McEniry said he also rejected the ABC's suggestions that the company would seek to mislead employees, suppliers, unions and government by announcing a closure just before it took effect.

"Nothing could be further from the truth," he said. "We have demonstrated a strong relationship with each of these groups based on a history of open and transparent communication. That is our modus operandi with all our stakeholders."

In a torrid question and answer session after the speech McEniry faced down his accusers from the ABC as well as a throng of automotive media.

Questioning centred on the 380's parlous sales performance and the recent announcement of a large rental fleet deal for the beleaguered model with Avis (see CarPoint story

McEniry said the private/fleet ratio of sales for the 380 was "very, very low" but commented that the large car segment itself was well down and the model was, in fact, tracking consistently with its predecessor in percentage terms (10-11 per cent of the segment). Though holding such a low share is hardly a glowing endorsement, McEniry also stated that early business plan "aspirations" of the 380's sales potential were "unrealistic".

He said the report the ABC based its accusations on was one of many the company undertakes as part of "good governance".

"I was very tempted today to bring 12 suitcases of the studies that we do -- for new product, development of the 380, for our dealer network or whatever -- and just put them on the floor and 'say go get them'," McEniry said

"I have a job as the senior executive in the organisation to look at every aspect of the business and review the job. That's what good governance is about [and] that's what any responsible corporate body does… So I'm not backing away from the fact we looked at that or we looked at this or whatever," he said.

On the decision to pursue the 2500-car Avis deal, he said it was "an indication of confidence [in the 380] going forward."

Called to task on his statements regarding rental deals affecting the 'whole of life' value of the 380 by CarPoint, he commented: "That was before we went through the whole price repositioning and model lineup [rejig].

"We certainly don't want to be dependent on rent-a-car business, that's for sure, but to get a base all the local manufacturers look for some locked-in volume.

"This [the Avis sale] with some other programs we working at gives us that base. It's profitable business, but as long as it doesn't get too carried away we are more than happy," he said.

with AAP