Guangzhou Auto, Mitsubishi to form new JV next June

• Source: Gasgoo
• [14:09 November 18 2010]
• Comments

One week after signing the memorandum of understanding (MOU) to establish a 50-50 joint venture in China, Guangzhou Automobile Group and Mitsubishi Motors Corporation already made plans to set up the new joint venture in June 2011 and start production of new models in July 2012, the Beijing Times reported Thursday, citing a Mitsubishi insider.

The new joint venture, which has a projected production capacity of 250,000 vehicles per year that the two automakers intend to achieve in five years, will be formed in Changsha, south China's Hunan Province.

With respect to the rumor that Mitsubishi's ASX (Jinxuan in Chinese) compact SUV will be the joint venture's first product, the insider said the Japanese automaker is currently in talks with Guangzhou Auto about production of a number of models and have not decided the specific models yet, but confirmed that SUVs must be prime candidates for the new company.

Speaking of the sales channel, the person said Mitsubishi hopes to expand its existing sales network and focus mainly on excellent dealers, while adding that the details still need to be further discussed with Guangzhou Auto. Besides, he highlighted that Mitsubishi believes the tie-up with the major Chinese automaker will certainly help strengthen both sides' business development in China.