Mitsubishi Motors CEO says sales in China are low and structural reforms are necessary

CTOnews.com, July 24, according to Bloomberg, Mitsubishi CEO Takao Kato said at the financial results meeting today that it is necessary to carry out structural reforms in the business of the Chinese market, which has low sales, but has not yet reached an agreement with partner GAC GROUP on the direction of reform.

▲ Tuyuan PexelsCTOnews.com previously reported that GAC-Mitsubishi, a Mitsubishi joint venture in China, had suspended production "temporarily" and planned to optimize its staffing structure due to sluggish sales.

In addition, Mr. Kato said he was continuing to consider whether to invest in Ampere, a new electric vehicle company jointly formed by Nissan and Renault. Mr Kato stressed that it would be difficult for one company to do everything in the transition to electric cars, and that using Ampere, which is doing business in Europe, meant a lot to the company. However, he also stressed that the significance of investment will be fully considered internally and a final decision will be made in consultation with the board of directors.

Renault had previously said it planned an initial public offering for Ampere between the end of 2023 and 2024. Kato said he was willing to consider joining the discussion between Nissan and Renault, Mitsubishi's largest shareholder.