Mitsubishi Auto Leasing and Mitsubishi HC Capital Auto Lease Sign Merger Agreement

Feb 24, 2023 16:37 JST

Source: Mitsubishi Corporation

TOKYO, Feb 24, 2023 - (JCN Newswire) - Mitsubishi Corporation (MC), Mitsubishi HC Capital Inc., Mitsubishi Auto Leasing Corporation and Mitsubishi HC Capital Auto Lease Corporation are pleased to announce the merger of Mitsubishi Auto Leasing and Mitsubishi HC Capital Auto Lease. The merger, which is scheduled to take place on April 1, 2023, has already been agreed to by respective parent entities MC and Mitsubishi HC Capital and contractually confirmed by Mitsubishi Auto Leasing and Mitsubishi HC Capital Auto Lease. The newly merged entity shall retain the name Mitsubishi Auto Leasing, with MC and Mitsubishi HC Capital holding equal shareholder voting rights.

Wide-scale reforms are taking place throughout mobility industries, as countries around the world continue to search for solutions that will decrease carbon footprints, increase logistics efficiencies and safety, eliminate restrictions on movement, and otherwise improve our societies.

One of the greatest challenges facing virtually all industries is to help realize carbon neutrality by spreading the use of eco-friendly vehicles, as evidenced by the Japanese government's strategic aim to have all newly sold passenger vehicles within the country be electric by the year 2035.

Mitsubishi Auto Leasing has been doing its part to provide Japan's market with electric vehicles (EVs) and related services that are customized to meet drivers' needs, automobile usage rates and other factors, work that has included a demonstration project on EV-charging management and the development of a service for visualizing greenhouse gas emissions. At the same time, Mitsubishi HC Capital Auto Lease has been developing its own line of mobility services, focusing mainly on the use of data to improve the safety and reliability of EV infrastructure, consulting for customers looking to decarbonize, and so on. Among its services is a one-stop EV solutions platform that is designed to help its partner companies electrify their vehicles.

Having already adopted the slogan "Creating New Value in Mobility solutions," the post-merger Mitsubishi Auto Leasing plans to stimulate evolution not only in auto leasing, but throughout the entire mobility-services industry. One example is the company's e-Mobility initiative, which will seek to build environments conducive to EV proliferation, make Japan's so-called "regional societies" (i.e. those outside major urban centers) more resilient, and create mechanisms dedicated to energy optimization. In addition, the post-merger company will be taking advantage of new digital technologies to make customer-oriented fleet-management services more sophisticated, expand mobility-management services, and otherwise enhance the products offered by its respective pre-merger entities, while also developing new mobility services, such as those that leverage ICT,1 IoT2 and other digital-space options, and a CASE3-designed energy-management platform.

Both the original Mitsubishi Auto Leasing and Mitsubishi HC Capital Auto Lease have broad customer bases, experience and know-how, which this merger will fuse to create new synergies. Its aims are twofold, one being to demonstrate those synergies by growing existing operations and strengthening businesses invested in safer driving, and the other being to evolve into a leading company in the development and proliferation of eco-friendly vehicles. The plan is to achieve the latter of those two aims by helping societies to decarbonize, build circular economies and otherwise solve many of the challenges facing them today.

In May 2022, MC unveiled its latest management plan, entitled "Midterm Corporate Strategy 2024 - Creating MC Shared Value." Among the plan's objectives is to jointly promote businesses that will further both digital (DX) and energy (EX) transformations and help to revitalize Japan's regional societies. By investing itself in this objective, MC hopes to create new, carbon-neutral industries that are built around renewable energies and independent, distributed communities where people can enjoy greater convenience and quality of life. MC already has a solid track record in the automotive sector, having been deeply engaged in virtually all links of its value chain, from product planning, development, production and sales, to leasing and fleet-management operations, all of which have spanned both the passenger- and commercial-vehicle markets. MC now plans to seize opportunities presented through CASE-driven industry revolutions and the anticipated evolution of digital technologies to strengthen its business foundation, one built on highly localized networks and functions that have been honed for decades. Furthermore, in addition to remaining dedicated to addressing societal challenges through the advancement of its people-and-products-based mobility solutions, MC is keen to help realize carbon-neutral and sustainably green (i.e. energy-efficient) societies. With that in mind, growing the use of eco-conscious mobility options like EVs and developing related functions and services are steps in the right direction.

It's the mission of Mitsubishi HC Capital and the group companies to "Contribute to a prosperous and sustainable future by creating social value through maximizing the potential of assets."

Mitsubishi HC Capital anticipates the changes in society and the business environment including changes in global industrial structures, accelerating digitalization and increasing importance of sustainability, and continues addressing social issues that can be solved only by Mitsubishi HC Capital through approaches such as SX (sustainability transformation) and DX with customers and partners. Positioning "Mobility" as one of five areas of focus, Mitsubishi HC Capital Group offers a wide range of mobility services that extend beyond auto leasing with its partners globally. These include total solutions covering such as automobile management and maintenance, specialist vehicle maintenance and customization, risk management services supporting for safe driving, as well as data-driven solutions. Mitsubishi HC Capital Group will continue to address societal issues by building efficient, environmentally friendly mobility businesses in support of global DX initiatives and the movement of goods and people with partners.

Through the joint management of the new Mitsubishi Auto Leasing, MC and Mitsubishi HC Capital shall demonstrate their commitment to developing and providing efficient, user-friendly and green mobility services that meet the expectations and needs of customers and societies.

1. Information-and-communications technologies
2. Internet of Things
3. Connected, Autonomous/Automated Driving, Shared and Electric

For more information, visit www.mitsubishicorp.com/jp/en/pr/archive/2023/html/0000050816.html.

Source: Mitsubishi Corporation
Sectors: Automotive, EVs, Transportation