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Old 11-05-2010, 02:01 PM   #1
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Default Guangzhou signs JV deal with Mitsubishi

November 05, 2010

Guangzhou Automobile Group and Mitsubishi Motors Corporation have signed today a memorandum of understanding (MOU) to establish a 50-50 joint venture in Changsha, Hunan, the capital of Hunan Province in south China, National Business Daily reported Friday.

GAC Changfeng Motor Co. Ltd. (600991.SH) will however withdraw from the cooperation with Guangzhou Auto that now holds a 29% stake in GAC Changfeng, and is set to tap the auto parts market.

Changfeng Group, a Chinese SUV maker in Hunan Province, and Japanese automaker Mitsubishi Motors, hold a 21.98% and 14.59% stake in GAC Changfeng respectively.

Executives from Mitsubishi Motors and Guangzhou Auto are reportedly to have arrived in Changsha yesterday afternoon. People on both sides, with knowledge of the matter, also confirmed the information about the MOU, saying they did not expect the thing could happen so quickly.

According to earlier sources, shares of GAC Changfeng had been suspended from trading since October 28 and may resume trading on November 4.

Due to the complexity of the restructuring, specific plans for the restructure between Guangzhou Auto and Mitsubishi Motors were already submitted for consultation by relevant departments in China and have not been finalized yet.

According to sources, both Changfeng Group and Mitsubishi Motors will alien their shares in GAC Changfeng to Guangzhou Auto, which will then recognize that resources to create a new joint venture with Mitsubishi Motors.

In addition, Changfeng Group is said to have signed an agreement with the Hunan government to supply auto parts to the vehicle manufacturers in the province, which analysts said may be the reason the automaker decided to terminate its cooperation with Guangzhou Auto.

By the end of 2015, Hunan expects to have a capacity of more than 2 million vehicles, consisting of 1.8 million sedans.

Does that mean Changfeng won't be producing cars any more? Or will their SUV's just get new badge? What about Acumen...
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Old 11-07-2010, 12:54 PM   #2
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Default Re: Guangzhou signs JV deal with Mitsubishi

Mitsubishi makes the best car engines in the world. This is a brilliant move for Guangzhou. It is actually a fairly harmonious auto building and parts supply cooperation and I think it will work out well for all parties. As long as they dot their i's and cross their t's properly throughout the final agreement and contract.

Last edited by Rally Red Lancer GTS; 11-07-2010 at 12:57 PM.
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Old 02-14-2012, 02:03 AM   #3
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Guangqi Mitsubishi JV to be established this September

February 14, 2012
Guangzhou Automobile Group and Mitsubishi will be establishing their joint venture this September, reported today.

The ASX crossover, Pajero Sport SUV (pictured above) and Colt subcompact will be among the first vehicles the Guangqi Mitsubishi joint venture will be manufacturing at its Changsha, Jiangsu production site, which will have a preliminary annual capacity of 300,000 vehicles. Meanwhile, the Mitsubishi Outlander and Pajero will be made at the same factory GAC Changfeng produces its Liebao vehicles. The Colt Plus (pictured below), which is already available in Taiwan, will be brought over to the mainland this year, as well.

Guangqi Mitsubishi will be concentrating on the SUV segment, with domestically manufactured versions expected to be shown at this April's Beijing International Automotive Exhibition. Prices are expected to drop after domestic production begins. The Colt and Colt Plus, meanwhile, will help the JV expand its reach to cover other market segments.
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Old 04-24-2012, 02:57 PM   #4
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Default Re: Guangzhou signs JV deal with Mitsubishi

Guangqi Mitsubishi hopes to sell Chinese-made vehicles in the future
April 18, 2012 (Shanghai April 18) - The upcoming Guangqi Mitsubishi joint venture, which is to be established this June, is currently mulling on how to manage its new sales network, the Beijing Youth Daily reported today. After gaining approval, the network will be responsible for sales of imported Mitsubishis in the country, and later Chinese-made models.

According to schedule, Guangqi Mitsubishi will begin manufacturing the ASX crossover (pictured above) this October. The joint venture expects to begin domestic production of the Pajero Sport (pictured below) next year. However, whether or not the JV will manufacture the two most popular Mitsubishi models in China, the Outlander and Pajero SUVs, in the country is something that remains to be seen. Although domestic manufacture of these two vehicles would most likely result in lower prices and increase sales, the JV's import division would lose a significant source of its profits.

Guangqi Mitsubishi hopes to introduce five to six models by 2017, in order to fulfill its annual target of 300,000 sales. In addition to expanding its model lineup, the JV will also research on how to maximize the efficiency of its sales network. According to reports, the JV hopes to have near 300 dealers in operation five years from now. Currently, there are only around 50 import Mitsubishi dealers in the country. If those dealers wish to sell Chinese-made models in the future, they first need to gain official approval from Guangqi Mitsubishi. Several Beijing dealers are reportedly planning to apply to Guangqi Mitsubishi for sales rights. If their applications are successful, they will be able to sell the domestically made Mitsubishis alongside their imported vehicles.

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Old 07-21-2012, 10:06 AM   #5
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Default Re: Guangzhou signs JV deal with Mitsubishi

Several car making companies actually sometimes group together for joint venture production for a car in a particular region or country. Well, to the point its really a great opportunity for Guangqi to prove itself in the automobile sector as it has a support of great automobile manufacturer Mitsubishi.
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Old 10-12-2012, 12:17 PM   #6
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GAC-Mitsubishi Founded, ASX Off the Line in Changsha

Almost two years after the joint venture agreement was signed, the establishment of GAC-Mitsubishi was officially declared today in Changsha, Hunan. The announcement was made without much fanfare as anti-Japanese sentiment among the public had risen to a dangerous level. Japanese carmakers suffered in China as the dispute over Diaoyu Islands intensified recently. Mitsubishi was hit especially hard. Its September China sales slumped 62.9% from a year earlier.

With a registered capital of 1.7 billion Yuan, the JV has three shareholders, GAC (Guangzhou Auto) with a 50% stake, Mitsubishi Motors 33%, and Mitsubishi Corporation 17%. It manufactures at a factory in Changsha formerly owned by Changfeng Motor. Changfeng for years built SUVs, including Pajero, there in partnership with Mitsubishi before being bought by GAC.

Together with the JVís establishment, it was announced that the first ASX rolled off the line and would be released before the year end. Compared with the imported model, which is available in four 2.0L+CVT versions, the Chinese-made ASX is reportedly to provide more powertrain choices. Besides the 2.0L MIVEC engine (4B11), rated 110kw/6000rpm and 197Nm/4200rpm, a 1.8 liter may be employed in the future, and so may a 5-speed manual transmission in addition to the CVT. GAC-Mitsubishi ASX is expected to sell for 150,000-210,000 Yuan.

The JV strives for 300,000 sales in 2015, according to Fu Shoujie, its Vice General Manager. To achieve that ambitious goal, the company plans to release at least four new models in the next two years. Its product line, currently featuring only the ASX, will be expanded to include the second-gen Pajero Sport (Challenger) in the first half of 2013, and then Mirage in the second half.
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