Rough terrain for new Mitsubishi partnership

Moving to tap the fast-growing SUV market in China, Mitsubishi Motors Corp recently formed a joint venture with Guangzhou Automobile Group Co.

The low-profile ceremony to announce the new GAC Mitsubishi Motors Co held on Oct 12 came after the original September announcement was postponed due to an ongoing territorial dispute and anti-Japanese protests in many Chinese cities last month.

Mitsubishi plans to produce its ASX and Pajero SUVs at the joint venture in Changsha, Hunan province. Annual production capacity is projected to reach 300,000 units in five years.