Forming a joint-venture with a Chinese partner seems to be the order of the day for most carmakers around the world. The latest company to join the bandwagon is Mitsubishi, which has announced that it will partner with Hunan Changfeng Motors to manufacture a range of Mitsu-branded sedans for the Chinese domestic market. Changfeng has already worked with Mitsubishi in the past, building versions of the Pajero SUV, but this time 'round the two will be forming a 50-50 joint venture to produce a range of new vehicles. According to Chen Zhengchu, Changfeng's General Manager, the deal could potentially see Mitsubishi's Chinese production rise to roughly 100,000 cars annually and should rise further in ensuing years.
Most analysts consider the deal a win for both sides. Mitsubishi gets a stronger foothold in the rapidly expanding Chinese market, while Changfeng's rep will improve in the international spotlight. As it stands, both parties are still at the negotiating table and an application has been sent to industry regulators.
[Source: ChinaKnowledge.com]
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Reader Comments (Page 1 of 1)
Barney @ Jun 13th 2007 4:43PM
North America use to be the big new market. China is a new frontier and with more potential buyers. There may be a day that China will be the world leader of manufactured goods. China will also be needing raw materials and has already looked into the Athabasca tar sands. China holds billions in American Bonds and may be using them to acquire more global business's.
robz4 @ Jun 13th 2007 5:33PM
I think Barney is absolutely right.Well ,time to get a Chinese girlfriend and start learning Chinese. If you can't beat them join them.
Kwesi @ Jun 14th 2007 1:47AM
YAY MITSUBISHI. i know Mitsu holds about 14% stake in chabgfeng, and that the pajero has to names and brands in china. i think they should increase their stake in changfeng, and in the chineese market in general. i think the amount of time and money wast..i mean spent on the US market should be reconsidered. i know they need the extra capital, but business that make it big take advantage of markets that had potential from they were small.
Toyota took the import market (honda too,.although their name doesnt make headlines like it used to) the market had potential,...and the entrepreneurs over in japan 'pounced' on the opportunity.
i personaly dont know what it takes to run a car company, but i would like to see mitsu break out of the net thay have caught themselves in, and break free. their problem,..as ive said time and time before is that people dont want a galant, not because they dont like it, nor because its a bad vehicle, but because for similar money thay can get camry or accord..simple...so clearly u can market your cars DIRECTLY against them,...unless ur gm or ford and billions are at stake and/or have been lost.
in conclusion, i say this is a move in the right direction and although its too little...its not too late.....yet