Mitsubishi PH’s Shibata is a tough act for Kato to follow

MANILA, Philippines–As soon as the neatly organized offices of Mitsubishi Motors Philippines Corp. (MMPC) open on April 1, a new face will greet employees and officers, and that face will occupy the title of president and CEO.

No, MMPC isn’t pulling a prank on April Fools’ Day. The “changing of the guards” is real, and it’s happening six days from now.

What’s most striking will be the fact that the incoming president, who goes by the name of Yoshiaki Kato, is—at 49—a year younger than the company he will helm.

It’s the changing of the guards, and also a shift in generations, indeed.

MMPC’s outgoing president Hikosaburo Shibata, always reserved and straightforward, considers the change of leadership as a necessary move for companies to survive and thrive with the times.

“A new blood, a new approach is very important. A position of leadership needs a continuous flow of new blood to survive for another 50 years,” Shibata curtly points out.

Shibata, who has been MMPC president for four years (a year longer than what was originally expected), turns over the reins of the country’s oldest automotive company at a time when the Philippine motoring industry is about to enter the much-anticipated age of motorization.

During Shibata’s term, MMPC achieved record-breaking sales despite aggressive and growing competition. Shibata was credited for a brand of leadership that motivated

MMPC employees, and which spearheaded various corporate social responsibility programs that went “beyond profits.”

The formal turnover ceremony between Shibata and Kato was held last March 19 at the City of Dreams Grand Ballroom during the all-new Strada VIP launch.

Shibata will return to Mitsubishi Motors Corp. (MMC) headquarters in Japan to be part of its global aftersales, as the global motoring giant steps up its efforts of exporting vehicles and parts worldwide. He hinted of contributing to worldwide logistics strategy.

Shibata himself is proud of the legacy he leaves for MMPC. “I was happy working in the Philippines because our sales increased. We celebrated our 50th anniversary in the Philippines and we have a new plant as we moved to Sta. Rosa City [in Laguna]. These are big changes, and I’m happy that in my own way, I have contributed to these changes.”

MMPC has achieved No. 2 status with a 20-percent market share, said Shibata. “This sales position is important, considering the rapid motorization here.”

As for MMPC’s big move from Cainta to Sta. Rosa, Shibata considered this a necessary move to accommodate expansion. “We had big discussions and negotiations with the purchase of the land and facilities. It has been 50 years sincemMMPC started in Cainta, and the area has remained largely residential,” Shibata explained.

Big shoes to fill

Kato is much aware of his predecessor’s efforts and achievements, and has not denied that Shibata’s stint would be a tough act to follow. “This is a big challenge for me, and a big challenge for the company,” he said.

Youth is often equated with inexperience but Kato is one of those rare exceptions. He may be the youngest MMPC president ever by April 1 but he isn’t wet behind the ears.

Before this Philippine assignment, he was most recently with Mitsubishi Motors (Thailand) Co. Ltd. as executive vice president for corporate global unit, handling corporate strategy and administration, including the legal and export businesses.

“I looked after our export businesses from Thailand to other countries, including the Philippines,” said Kato.

Before Thailand, Kato held significant positions in Mitsubishi Motors Australia Ltd. from 1996 to 2000 and 2006 to 2011; and Mitsubishi Fuso Trucks and Bus Australia Pty. Ltd. from September 2003 to December 2005.

Afterward, Kato returned to Japan to man a post as an expert of MMC’s Europe Department. He was later promoted as its general manager.

Kato graduated from the University of Tokyo and took post-graduate studies at the Graduate School of Business.

Kato will assume his Philippine post armed, at least, with knowledge of the Pinoy disposition and a bit of geography.

“My impression of the Philippines before I came here was that this country was growing and had lots of potential. The people are warm and friendly and different from Thais who are usually quiet and too polite. I know Filipinos have a great sense of humor and I’m pleasantly surprised to know that Tokyo is only a four-hour plane ride from here. We’re that close,” he smiled.

Avid golfer

Shibata revealed that he enjoyed playing golf in the Philippines, adding, “though I’m not a good golf player.”

In a rare moment of introspection, Shibata pondered, “I have made a lot of friends here, and I’m going to miss them. I do feel sad, of course, but this is life. Everything must move. I would have welcomed staying longer but I am also ready to take on new challenges. I think the time has come for me to take on these new challenges.”

Shibata mentioned that in his career with Mitsubishi, he has had only one other assignment outside Japan, and that was in the Netherlands.

He then shared an observation about Japanese working in the Philippines: “When Japanese are dispatched to the Philippines, they cry three times: The first is when they learn they’ll be assigned to the Philippines; the second is after their arrival at the international airport; and the third is when they have to leave the Philippines to return to Japan.”

But will Shibata cry when he leaves? He answers this with a dry, stoic silence. Instead, he said: “I hope to be back in the Philippines someday when I get the chance.”

The Pinoy buyer, in their eyes

Shibata takes home to Japan a wealth of observations and experiences about Filipino car buyers’ preferences. “While European buyers are more conscious of environmental issues, here the market is still dominantly price conscious.”

Another unique buying trait is the primary preference for seven-seaters or MPVs. “Evidently, the family is important for Filipino car buyers. Historically, the Philippine market has opted for seven-seater, diesel-powered MPVs with high ground clearance.”

Speaking from his experience in Thailand, Kato expects things to go nowhere but up for the Philippines. “The car market in Thailand is almost one million. So, compared to Thailand, I understand the Philippine market has some catching up to do, and it is rapidly growing. But I have no idea yet by how much we’ll grow this year.”

Much of MMPC’s performance this year will hinge on how the new Strada sells in the Philippines. “The Strada pickup is an important model for the Philippines, as well as Thailand (where it is called Triton), Indonesia, Australia and some European countries. We have high expectations for this product, and we are confident that it will become successful in the Philippines.”

Among Kato’s initial pieces of good news that he is pleased to share with Filipinos is MMC’s increased interest in the Philippines.

“The Philippines is among the core markets of MMC. With MMPC’s transfer to Santa Rosa, MMC has announced its plan to further expand the business in the country,” added Kato.

Asked if he’s ready to fight it out for the No. 1 spot in the local automotive industry, Kato brushes the tension off with a laugh. “We try to do what we can do at the best of our abilities. We’re not fighting with the top player. This is all in the spirit of friendly competition.”