Top Commitment
President & CEO
Realizing a Sustainable Mobile Society
Driving the Reform of Management Structures
The global economic recession that broke out in the second half of 2008 has created a massive shockwave that has shaken the centennial history of the auto industry to its very foundations. The world's largest auto market leading the wave of motorization, the United States, is undergoing sweeping changes that have threatened the underpinnings of the "Big 3" auto manufacturers, while countries in Asia and Europe are experiencing setbacks on an unprecedented scale. After hitting its peak in 2007 at 70 million units, the global new car market is expected to drop below the 60 million mark in 2009. Some say that the market will not return to its 2007 level for several years to come, at the very least. Alpine is also not immune to this worldwide recession. Due to a sharp decline in orders from auto manufacturers since the second half of 2008, the subsequent slowdown of private consumption and appreciation of the yen, Alpine reported a loss in fiscal 2008 for the first time since the company was listed on the Tokyo Stock Exchange. In response to this rapidly deteriorating operating environment, we have instituted the “CHALLENGE 30+” initiative, which comprises new emergency measures to improve profits and streamline our organization, in addition to the structural reform programs that we have pursued since fiscal 2008.
Developing Products for New Vehicles
Meanwhile, technological evolution is opening up a new automotive era. Now that our world shares the same understanding of the need to prevent global warming and create recycling societies, auto manufacturers have shifted their focus to the environment and safety while accelerating their drive to develop hybrid vehicles, electric vehicles, and ASVs (Advanced Safety Vehicles) by involving other industrial sectors. These new vehicles have the potential to bring about changes in our mobile society and have substantial growth in the near future. In the market, eco-friendly cars, including hybrid vehicles, compact cars, and fuel-efficient cars, are selling rapidly.
Proactively addressing these changes, Alpine is focusing resources on the development of products that help to achieve lighter-weight, reduced power consumption, and lower-cost vehicles. With the help of navigation systems, we also hope to realize more eco-friendly driving, offer greater reliability and increased safety. We believe that we must respond promptly to these changes if we are to achieve a new stage of growth.
Sustaining Business Growth
As rapid changes take place in the business environment currently faced by the auto industry, I believe that companies like ours are charged with the social responsibility of continuing to grow with our valued stakeholders by offering products and new value that will be appreciated by our customers. In this sense, our business goals and CSR are one and the same. All the more because of the current environment, I believe that it is crucial to better our business position and to deepen the relationship with our valued stakeholders.
Our Corporate Philosophy consists of three main precepts: Respect for Individuality, Creating Value, and Contribution to Society. In this unprecedentedly severe recession we must return to this core starting point, so that we can continue to grow and push forward the realization of a sustainable mobile society.
