AutoBeta(AutoBeta.net)07/25 Report--

According to foreign media reports, Mitsubishi Motors CEO Takao Kato said at the financial performance meeting that it is necessary to carry out structural reform in the Chinese market business with low sales, but has not yet reached an agreement with partner GAC GROUP on the direction of the reform.

Renault had previously said it planned an initial public offering for Ampere between the end of 2023 and 2024. Mr. Kato, a member of the alliance, said he was continuing to consider whether to invest in Ampere, a new electric car company jointly formed by Nissan and Renault. It would be difficult for one company to take charge of the transition to electric vehicles, and it would be significant for the company to take advantage of Ampere, which is doing business in Europe. Kato said he was willing to consider joining the discussion between Nissan and Renault, Mitsubishi's largest shareholder.

Due to sluggish sales, GAC-Mitsubishi, a Mitsubishi joint venture in China, has stopped production "temporarily" and plans to optimize its personnel structure. According to the data, GAC-Mitsubishi's highlight moment was in 2018, with sales of 144000 vehicles, but has been declining since then. In 2022, GAC-Mitsubishi sold only 35500 vehicles and its capacity utilization rate was only 17.75%. In the face of persistently depressed sales, the GAC-Mitsubishi plant had to stop production.

Even if GAC-Mitsubishi promises not to withdraw from the Chinese market, it can no longer hide its difficult survival situation. Data show that GAC-Mitsubishi models currently on sale include Yige, Jinxuan ASX, Atuco AIRTREK and Orlande, with cumulative retail sales of 11978 vehicles in the first half of the year.

Fuel cars can't be sold, and no one buys electric cars. In November 2022, the Outlander was finally replaced, but instead of a boost, sales fell. In addition, GAC-Mitsubishi also failed to seize the opportunity of the new energy wave. The only electrified model on sale, the Artuco, has a weak sense of existence. It is based on the Eian AION V and is considered by the outside world to be a shell version of the AION V. however, the Artuco AIRTREK has never been recognized by the market, contributing only six units to sales in June.

In fact, under the tide of electrification and intelligence, joint venture car companies are generally facing greater survival pressure, and the survival of minority joint venture brands in the past is becoming more and more difficult, and even have to withdraw from the Chinese market, such as Suzuki, Fiat, Renault, Acura, Jeep and other brands have withdrawn from the Chinese market. At the same time, including Weimar, Skyline, Reading and other car manufacturing enterprises also began to thunderstorm, into operational difficulties.

According to CAC data, the top 10 car companies by sales in the first half of the year were BYD, FAW-Volkswagen, Changan Automobile, Geely Automobile, SAIC-Volkswagen, Guangzhou Automobile Toyota, SAIC General Motors, FAW Toyota, Dongfeng Nissan and Great Wall Automobile. Among them, the sales of all joint venture brands except FAW Toyota declined year-on-year, while those of independent brands except Great Wall Motor increased year-on-year.

Under the iteration of the market, the great changes in the automobile market will continue, and the situation of GAC-Mitsubishi is also worthy of vigilance by all minority joint venture brands.

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