Fast technology on September 27, according to the Nikkei news,Mitsubishi Motors, which has decided to stop production in the Chinese market, has begun final exit talks with GAC Group,The latter is Mitsubishi's domestic partner company.
Mitsubishi's sales in the Chinese market have been sluggish due to the popularity of electric vehicles and the rise of local brands. Other Japanese automakers are also struggling and may review their strategy in the Chinese market.
Later today, Mitsubishi's head of public relations, Tetsuji Inoue, said,The report is not an official release of the company's news, "is still continuing to dialogue with shareholders, has not made any decision."
Gac Group holds a 50 percent stake in GAC Mitsubishi, Mitsubishi Motors a 30 percent stake and Mitsubishi Corporation a 20 percent stake. For Mitsubishi Motors to withdraw from the Chinese market, shareholders need to make a joint decision.
In addition, reports indicate that Mitsubishi Motors has stopped production in China due to sluggish sales. The factory of GAC Mitsubishi Motors, a joint venture between GAC and Mitsubishi, is located in Changsha, which is Mitsubishi's only new car factory in China. The plant suspended production in March due to low sales.
Passenger Association data show that in May this year, GAC Mitsubishi's production and sales were 0,In the first five months, GAC Mitsubishi accumulated production of 3,367 vehicles, down 75% year-on-year, and cumulative sales of only 8,943 vehicles, down 25.1% year-on-year.
In fact, Mitsubishi Motors has come to this point is really regrettable, as early as more than a decade ago, Mitsubishi Motors in the domestic market or the mainstream brand, and just started domestic car companies, generally buy Mitsubishi engines and related supporting technology, said Mitsubishi Motors is the "godfather of domestic cars" is not too much.
However, with the lagging of Mitsubishi's auto business in China and the sluggish electric transformation, Mitsubishi Motors has now been squeezed to the edge of the Chinese market, and under the background of continued low sales, Mitsubishi Motors' withdrawal from the Chinese market may be a high probability event.