Japan’s Mitsubishi to abandon auto production in China

Mitsubishi Motors has reportedly made the decision to cease automobile production in China and is currently discussing its exit with its local joint venture partner, Guangzhou Automobile Group (GAC). The joint venture, known as GAC Mitsubishi Motors, was established in 2012 and has been primarily focused on SUV sales in China.

It is anticipated that Guangzhou Automobile Group will repurpose the plant, situated in Hunan province, into a production facility for electric vehicles. This aligns with the broader industry shift towards electric mobility and the growing demand for electric vehicles globally.

The decision to halt automobile production in China is part of Mitsubishi Motors’ strategic considerations for its China business. The company, along with its shareholders in the joint venture, is in ongoing discussions to determine the best course of action. The venture previously faced challenges, including slowing sales and the cessation of production for the Outlander sports utility vehicle due to weak sales.

Mitsubishi Motors aims to navigate the evolving automotive landscape, which is witnessing a significant shift towards electric and sustainable mobility solutions. This move is in line with global trends where automakers are increasingly focusing on electric vehicle production and realigning their strategies to meet changing consumer preferences and regulatory requirements.

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