Mitsubishi and Changfeng Motor joint venture plans to produce SUVs

Mitsubishi Motors is negotiating with Changfeng Motor to set up a joint venture company, which mainly produces SUV series. "Once set up, it is estimated that Mitsubishi Pajero in China's marketing strategy will be re-enacted within three months." Mitsubishi's North Asia general manager Shinsuke Katsuragi said.

A revival plan of Mitsubishi Motors disclosed that Asian markets strategy will mainly focus on China. By 2008, output and sales of automobiles in China will reach 310,000 vehicles, including China-made brand 90,000 vehicles, Mitsubishi brand 220,000 vehicles.

On April 2006, Mitsubishi took shares of Southeast (Fujian) Automobile Co. Ltd., about 25% shareholding. In addition, Mitsubishi Motors Corporation still holds 14% of shares in Taiwan China Motors, while Taiwan China Motors hold 25% of Southeast Motor, Mitsubishi indirectly has 3.5% shareholding, since then Southeast Motor have been licensed to produce Grandis and lancer models.

Shinsuke Katsuragi also said that after the capital replenishment of Changfeng, Mitsubishi will make greater efforts to expand its product line. The major products are currently focusing on Changfeng SUV, including Changfeng Liebao, Mitsubishi Pajero and Liebao SUV. Industry data showed that the total sales volume of SUVs were 238,097 units, which accounted for only 3% of the bus market last year.