Mitsubishi Cable to Make Money for Car Electronics in 3 Years

Mitsubishi Cable Industries aims to make the Car Electronics & Optics Components segment profitable after next 3 years. The firm will increase the overseas output ratio of automotive wiring harness from current 60% to 80% for higher cost competitiveness. The firm also advances reorganization of domestic auto parts plants, cost reduction at overseas sites and sales expansion for automakers other than Mitsubishi Motors Corporation.Mitsubishi Cable Industries announced on Thursday the firm posted consolidated operating loss of 1.356 billion yen for the segment in the first half of fiscal 2007 ended September, which improved by 177 million yen compared with the corresponding period of fiscal 2006, while the consolidated net sales of the segment increased by 34.3% to 18.065 billion yen in 1H of F2007 from a year earlier.The firm produces auto wiring harness mainly at overseas plants in China and Indonesia. The plant in Dalian City, China, established in 2005, currently became to produce auto wiring harness sufficient in volume and quality. Then Mitsubishi Cable Industries aims to start reorganization of the domestic productive sites where duplicate products are manufactured. The firm also integrates headquarters and administration functions between the parent and Ryosei Electro-Circuit Systems, a previous subsidiary merged with the parent in 2006.As to the sales expansion of auto wiring harness, the firm gained a new order from Japanese automaker other than Mitsubishi Motors and will start the shipment next summer. The firm seeks more order receptions from various automakers.