Mitsubishi Motors plans to continue suspending production in China, restart date undetermined

News on May 31, according to the Japanese media "Yomiuri Shimbun", Mitsubishi Motors plans to continue to suspend the production of new cars in China, and has not yet determined a reopening date. A Mitsubishi Motors spokesman said they are discussing with local partners when to resume production in China, but the specific resumption time has not been disclosed.

Mitsubishi Motors said as early as April that due to sluggish sales in the Chinese market, they would suspend the production of new cars in China from March to May, but they would continue to produce some parts and plans to restart in June. Start production. However, Mitsubishi Motors President Takao Kato clarified at a media briefing on May 9 that the company currently has no plans to withdraw from the Chinese market and said that the Changsha plant plans to restart operations in June as planned.

However, as June approaches, the original production restart plan has been delayed again, which also means that Mitsubishi Motors’ development in the Chinese market still faces huge obstacles. Certainty. According to the editor's understanding, Mitsubishi Motors' joint venture in China is GAC Mitsubishi, which was established in 2012. Its factory is located in Changsha, Hunan, and mainly produces the Outlander SUV model.

GAC Group’s 2022 annual report shows that as of the end of 2022, GAC Mitsubishi’s annual capacity utilization rate was only 17.75%, total assets were 5.961 billion yuan, and total assets and liabilities reached 5.954 billion yuan, almost the same. Although GAC Group injected 1 billion yuan into GAC Mitsubishi in September last year to improve cash flow, the results now appear to be unsatisfactory.

In the production and sales report in April this year, GAC Group no longer lists the production and sales data of GAC Mitsubishi separately. GAC responded that because Mitsubishi Motors accounts for a small proportion of production and sales in the Chinese market, it is classified into the "other" category. There are still a series of challenges and uncertainties regarding Mitsubishi Motors' development in China.

Although the report mentioned that Mitsubishi Motors plans to resume production in China, the specific time has not yet been determined. This is still a major variable for Mitsubishi Motors' prospects in the Chinese market. Mitsubishi Motors and its partners need to continue to work hard to solve the problems of sluggish sales and low capacity utilization to ensure continued development in the Chinese market.

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