Changfeng, Mitsubishi to set up a joint venture

Changfeng Motors and Mitsubishi Motors now get consensus on the establishment of joint venture in China. It is reported that Changfeng Motors, based in Hunan Province and Mitsubishi Motor Co., Ltd. will co-invest to set up a 50/50 share joint venture.

"Changfeng and Mitsubishi each will hold 50% shares of the joint venture." Chen Zhengchu, general manager of Hunan Changfeng Automobile Manufacturing Co., Ltd. said earlier.

Earlier, the industry speculated that there are two options for Changfeng: one is Sojitz Corporation and Mitsubishi Corporation to co-invest in Changfeng Motors as to raise their shares to the level of Changfeng major shareholders -- Changfeng Group, thus Changfeng Motors will become a joint venture company; Another way is Mitsubishi and Sojitz Corporation sell their 14.59% shares and 3.65% shares, and then set up a joint venture company with Changfeng Motors.

Chen Zhengchu said the joint venture company's production will mainly focus on sedans.

He also said that once the joint-venture company is established, Mitsubishi brand sport utility vehicle production will be continued in the new plant, meanwhile, the joint venture is expected to reach production capacity as 100,000 units."