Due to the low revenues from just
providing technology to its Chinese partners, Japanese automaker Mitsubishi
Motors plans to establish a joint venture with Hunan Changfeng Group to
manufacture its vehicle models in China.
Mitsubishi now holds 14.59 percent of Changfeng Motor Co Ltd, and the latter
uses Mitsubishi's technology to produce a sport utility vehicle named the
Pajero. But compared with other Japanese automakers like Honda, which has
already started to manufacture vehicles in China, Mitsubishi needs to do more
than just supply engines.
According to Mitsubishi's China program released three years ago, it will
produce and sell 90,000 vehicles using Mitsubishi's technology and 220,000 under
its own brand in China by 2008. In order to meet these goals, the Japanese car
manufacturer has to expand its presence in China.
The full text is available in the June Issue of AutoChina.
(For more biz stories, please visit Industry Updates)