Is Mitsubishi really going to delist? Mitsubishi Motors extends suspension of production in China, and the resumption date is uncertain

Mitsubishi Motors extends suspension of production in China, uncertain if it will delist

【PhoneAuto News】Recently, according to the Yomiuri Shimbun of Japan, Mitsubishi Motors plans to continue to suspend production of new cars in China after June this year, and the date of reopening has not yet been determined. A spokesperson for Mitsubishi Motors said that they are discussing with local partners when to resume production in China, but did not reveal a specific resumption time.

Mitsubishi Outlander

In April, due to sluggish sales in the Chinese market, Mitsubishi Motors announced that it would suspend production of new cars in China from March to May, while continuing to produce some parts, and it was expected to resume production in June. However, on May 9, Mitsubishi Motors President Takao Kato clarified at a media briefing held in Japan that the company currently has no plans to withdraw from the Chinese market, and although the company is facing difficulties in China, the Changsha factory will restart production in June as planned.

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As June approaches, the originally scheduled plan to resume production in June has been delayed again, which also means that Mitsubishi Motors’ development in China still faces great uncertainty. Currently, Mitsubishi Motors’ joint venture in China is GAC Mitsubishi, established in 2012, with its factory located in Changsha, Hunan, mainly producing SUV models such as the Outlander.

According to the 2022 report of GAC Group, as of the end of December 2022, the annual capacity utilization rate of GAC Mitsubishi was only 17.75%, and the total assets were 5.961 billion yuan, while the total liabilities reached 5.954 billion yuan, almost the same. In September last year, GAC Group injected 1 billion yuan into GAC Mitsubishi to improve its cash flow, but the effect seems to be minimal.

In the production and sales report released by Guangzhou Automobile Group in April this year, the shadow of GAC Mitsubishi can no longer be seen. Guangzhou Automobile Group responded to the outside world that Mitsubishi’s production and sales accounted for a relatively small proportion, so it was included in the “other” category instead of being listed separately.

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