Mitsubishi hands over China joint venture to GAC

Mitsubishi's withdrawal from the Chinese market, which was announced in July due to the Japanese manufacturer's oversleeping in the transition from the internal combustion engine to the electric car, has been finalised. The former joint venture GAC Mitsubishi will be completely transferred to the GAC Group.

The Changsha plant in Hunan province will be used by the electric car brand GAC Aion from mid-2024, Chinese eMobility media report. GAC Aion will then increase its annual production capacity from 400,000 to 600,000 electric cars. The two existing plants are located in the region around the home city of Guangzhou.

In July, it was revealed that Mitsubishi was planning to withdraw from China. At the time, it was said that the rapid shift in China from combustion engines to electric cars had hit the Japanese company’s existing model range hard. In addition to some internal combustion vehicles, Mitsubishi had only one E-SUV in its portfolio, but it was not a success with just over 500 units in 2022.

Production in Changsha has been at a standstill since March 2023. It is now to restart in March 2024 – under new ownership and with new models, but largely with the same team, which is reportedly being taken over by GAC Aion. However, the nearly 3,000 employees will have to accept “significant wage cuts” in the transition to GAC Aion.

gasgoo.com, cnevpost.com