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Mitsubishi & Changfeng may co-develop new JV

Ally From www.gasgoo.com| May 21 , 2007

SUV maker Changfeng Motors Co. hopes to rebuild a JV with Mitsubishi-motors to produce cars introduced by Mitsubishi. Mitsubishi-motors held 14.59% stocks in Changfeng, whose main product is the Mitsubishi Pajero and a version of the Pajero sold under its own brand, Liebao. The Hunan-based company buys parts from Mitsubishi's suppliers.

Mitsubishi-motors earlier unveiled its development plan to sell 310,000 vehicles in China by 2008, including 90,000 local brand vehicles and 220,000 Mitsubishi branded cars. To reach this target, Mitsubishi has to cooperate with domestic car makers so as to lay the foundation for large scale operations in China.

Mitsubishi has bought 25% shares in Southeast Auto in April, 2006, and was allowed to produce Grandis and Lancer sedans under Mitsubishi brand. In addition, the company owns 14% shares of Taiwan Zhonghua Motor, who also holds 25% shares in Southeast Auto.

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