Japanese car maker Mitsubishi is moving business out of China. In the meantime, it has been announced to stop the production of cars in the joint venture. It also said it will transfer the stake in the unit to a Chinese partner. Mitsubishi is the latest foreign company to announce plans to scale back its operations in China. News Reuters and Banik Barta.
The decision by the Japanese carmaker comes at a time when fierce price competition is underway in China. Earlier, global automakers such as Hyundai Motor and Stellantis have taken steps to cut costs by restructuring their businesses.
Mitsubishi Motors recently said separately it would invest up to $214 million in French rival Renault’s new electric car unit. Because they want to strengthen their position in Europe and other markets.
The Japanese company started a joint venture (JV) in China in 2012 with Guangzhou Automobile Group (GAC) and trading house Mitsubishi Corporation. Mitsubishi Motors and Mitsubishi will jointly transfer their shares to their Chinese partner, becoming a wholly owned subsidiary of GAC, Mitsubishi authorities said.
