Southeast Motor may get additional investment

Shanghai, October 24 (Gasgoo.com) Southeast Motor president Ling Yuzhang announced yesterday the automaker’s three stockholders will add investments into the company to boost facility expansion and new model development, which brings hope to the automaker troubled by poor sales in recent years, Beijing Times said today.

Southeast Motor reportedly sold 30,000 vehicles in the first nine months this year, down from the same period of last year and below the industry average drop. Ling Yuzhang said the three stockholders paid much attention to Southeast Motor’s difficulties and hoped to stabilize and boost the joint venture’s development by increasing investments.

Before, a negotiation group from the three sides has carried out the first round of investment talks. The upcoming second round of talks is expected to end by November to reach an agreement on investment amount and timelines.

Currently, the automaker is planning a “three-year recovery program” to reduce sourcing costs, strengthen dealers, introduce more Mitsubishi models and enhance in-house development, Ling Yuzhang disclosed.

It is reported that Southeast Motor’s investment increase is related to its sales network construction. The company’s vice general manager Luo Derun said Southeast Motor is considering building two dealership networks by separating Southeast and Mitsubishi brands into two sales units.

Southeast Motor Corp. was cooperatively built by Fujian Motor Industry Group and its Taiwan partner China Motor Corp in 1995; Japanese Mitsubishi Motors Corp invested in Southeast Motor Corp. officially in 2006. Fujian Motor holds 50% stocks and the other two hold 50% in the company.