Mitsubishi

Mitsubishi, loose consortium of independent Japanese companies that were created out of the giant, family-owned Mitsubishi business combine, or zaibatsu, which was broken up after World War II and reestablished in April 1950.

The first of the Mitsubishi companies was a trading and shipping concern, Mitsubishi Commercial Company (Mitsubishi Shōkai), formed in 1873 by Iwasaki Yatarō out of a government-operated shipping company he had purchased in 1871. In its effort to promote Japanese commerce and industry, the government gave Iwasaki considerable financial assistance for several years, and the company grew to be Japan’s largest shipping firm.

Iwasaki diversified the company’s interests, first into mining and then finance, warehousing, shipbuilding, real estate, and banking. In 1893 these interests were organized into a family-owned holding company, Mitsubishi, Ltd. (Mitsubishi Gōshi Kaisha). During and after World War I, several subsidiaries were created out of Mitsubishi, Ltd., which in addition to the earlier interests included iron and steel, insurance, oil refining, aircraft production, and chemicals. By the 1930s Mitsubishi was the second largest zaibatsu in the country.

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Restored Japanese Mitsubishi A6M2 Zero fighter.

© Marc Grossman (CC BY-SA 3.0)

Mitsubishi was also one of the major military contractors during the 1930s and ’40s; it built many of Japan’s warships as well as the Zero fighter airplane. Because of its war production, Mitsubishi grew to enormous size, controlling some 200 companies by the end of World War II. After Japan’s defeat the Mitsubishi zaibatsu was broken up by the U.S. occupation authorities. Mitsubishi, Ltd., was dissolved, and the stock of the former subsidiary firms was sold to the public.

At the end of the occupation in 1952, the new grouping of former Mitsubishi companies was significantly different from the old zaibatsu in that there was no central, family-controlled holding company; instead, it was characterized by informal policy coordination among the various company presidents and by a degree of financial interdependency among the corporations—an organizational structure known as keiretsu.

The contemporary Mitsubishi Group consists of hundreds of so-called group companies, some of which, such as Nikon Corporation, Kirin Brewery, and Asahi Glass, do not use the Mitsubishi name. The major firms within Mitsubishi are large multinational corporations, most of which are based in Tokyo and have offices and subsidiaries overseas; some of these firms are engaged in joint ventures with foreign companies. In the United States, the Mitsubishi International Corporation, founded in 1954, operates an American trading company (sōgō shōsha) and is involved in finance and project management for the Mitsubishi Corporation of Tokyo.