Guangzhou-Mitsubishi to reveal joint venture in September 2012

Mitsubishi’s auto division hangs by a thread, European sales are collapsing fast, their Dutch factory is on the market for a mere Euro and exports from Japan make their prices uncompetitive when compared to its rivals that have adopted Chinese production or produce in regional countries such as Korea. Mitsubishi’s current joint venture with SouEast Auto in Fujian province has not reaped the rewards the company expected, the latest generation of Lancer has failed to keep up with the popular Ford Focus and other compact cars. Mitsubishi has just a 25% say in the SouEast JV so its say in the direction of the company also has some limitation. Previously Changfeng and Mitsubishi had a joint venture which saw Changfeng produce Mitsubishi SUV’s in the Chinese market and Mitsubishi gave its older platforms to Changfeng to do with as it wished, however Changfeng was merged into Guangzhou Auto in 2009, thus paving the way for a new joint venture between Guangzhou Auto and Mitsubishi.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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