Once brilliant! Well-known companies announced their withdrawal from the Chinese market

GAC Mitsubishi, who was once brilliant,

will completely fade out of the Chinese market...

According to Japan's Yomiuri Shimbun, at a board meeting held on October 24, Mitsubishi Motors officially decided to withdraw from vehicle production in China. Mitsubishi Motors Corporation also announced on its official website that it had decided to sell shares in GAC-Mitsubishi, a joint venture, and dissolve the joint venture. Mitsubishi's local car production in China will end, and new car sales will end when inventory is exhausted, which means that Mitsubishi will withdraw from China's automobile production and sales.

On the evening of October 24, GAC Group announced that its board of directors had deliberated and approved the "Announcement on Related Party Transactions for the Restructuring of GAC Mitsubishi" and planned to implement equity adjustments and other restructuring matters for GAC Mitsubishi and GAC Mitsubishi Motors Sales Company.

The GAC Group will acquire 30% and 20% of the shares of GAC Mitsubishi Mitsubishi held by Mitsubishi Motor Industry Co., Ltd. and Mitsubishi Corporation for a consideration of CNY 1, GAC Mitsubishi will become a wholly-owned subsidiary of GAC Group, and GAC AION will use GAC-Mitsubishi plants to increase production and expand capacity.

Since March this year, GAC Mitsubishi has been caught in the turmoil of "delisting" one after another. Officials have clarified that "Mitsubishi has not withdrawn from China, despite difficulties in China", and in July issued a "letter to all employees of GAC Mitsubishi", which showed that GAC Mitsubishi stopped production and laid off employees, and the official person in charge also flatly denied withdrawing from China.

"A Letter to All GAC-Mitsubishi Employees"

And now,

Open the homepage of GAC-Mitsubishi's official website

I saw GAC-Mitsubishi's explanatory letter to the owner.

As previously reported,

The main reason for Mitsubishi Motors' defeat in China is this

The popularity of new energy vehicles and the rise of local Chinese brands

As a result, sales in China continue to be sluggish.

In fact, since 2020, GAC-Mitsubishi's sales have plummeted. According to official data, from 2020 to 2022, GAC-Mitsubishi's sales volume will be 75,000 units, 66,000 units, and 38,000 units, respectively, down 43.62%, 11.99%, and 49.13% y/y.

END

Source: Shanghai Securities News, Shenzhen Special Zone News, Shanghai Traffic Radio

Edited by Lady W