Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 20, according to the Japan Broadcasting Association (NHK) reported on Thursday local time, sources revealed that Mitsubishi Motors has now decided to stop car sales and production in China, and withdraw from the Chinese market.

Mitsubishi Motors is expected to make a formal decision as early as next week, the report said. Mitsubishi has now decided to sell its stake in a Chinese company that manages Mitsubishi's production in China, sources told NHK.

The joint venture between GAC and Mitsubishi, located in Changsha, Hunan province, opened in 2012, but suspended operations and production in March this year. At present, Mitsubishi, which mainly produces fuel cars, is "struggling" in the Chinese market, as pure electricity and plug-in cars increasingly dominate the Chinese market, Mitsubishi now plans to shift its focus to the Southeast Asian market.

▲ Tuyuan Guangzhou Automobile Mitsubishi official website CTOnews.com previously reported that Mitsubishi Motors last reported the news of "stop production" on September 27, the Nikkei News reported the news. Mitsubishi has begun final exit negotiations with GAC GROUP, while other Japanese carmakers are also struggling and may re-examine their strategies in the Chinese market, it said. However, Bloomberg reported later that Mitsubishi's head of public relations, Yuji Inoue, said the report was not officially released by the company and was "still in dialogue with shareholders and has not made any decision."

GAC GROUP currently owns 50 per cent of GAC-Mitsubishi, 30 per cent of Mitsubishi Motors and 20 per cent of Mitsubishi Corporation. With the divestment of Mitsubishi Motors and Mitsubishi Corporation, GAC GROUP is expected to use the Hunan plant to produce electric cars.

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