Mitsubishi, Changfeng in talks to form joint venture

Shanghai. December 19 (Gasgoo.com) – Japanese automaker Mitsubishi is planning to form a 50-50 joint venture with Chinese automaker Changfeng, Chinese web media sina.com reported today.

"Changfeng is planning to have substantial negotiations with Mitsubishi over the projected joint venture project," said Chen Zhengchu, general manager of the Hunan-based Changfeng Motors. "We are going to form a 50-50 joint venture with Mitsubishi and as such, we will make some adjustments on our investment structure accordingly."

The two sides are enthusiastic over forming a joint venture company, but there are a lot of things to prepare, Chen said.

There are differences that must be ironed out between the two partners before the joint venture can be formed, the Sina.com report said.

Mitsubishi plans to produce sedan and MPV models with another partner, the Fujian-based Southeast Motors and it hopes Changfeng concentrates on the production of SUV vehicles. However, Changfeng has its own agenda: it hopes to produce sedan vehicles too.

Currently, Changfeng has an annual capacity to produce 100,000 vehicles. With the completion of its new production base at Yongzhou, Hunan province, the automaker will have a total capacity of 200,000 vehicles.

Currently Changfeng produces a SUV vehicle Liebao on its own and Pajero SUV for Mitsubishi.