Mitsubishi has reduced its presence in the Chinese auto industryMay 9, 2021
Mitsubishi Motors (MMC) has announced its withdrawal from the capital of the Chinese automaker South East Motor. Until recently, the Japanese owned 25% of the company’s shares. Their share was bought by Fuzhou Trading from China.
South East Motor (or Soueast for short) is a small company founded in 1995 as a joint venture between China Motor Corporation and Fujian Motor Industry Group (they still own 25% and 50%, respectively). In 2006, a fourth of the shares were acquired by MMC. Soueast cars are based on Mitsubishi components and assemblies. The firm produces a wide range of sedans and crossovers with their own bodies, but with Japanese-made stuffing.
Soueast’s exit from capital is a measure of the recovery of MMC’s own business. She, like alliance partners Renault and Nissan, is in serious financial trouble. We have to cut costs and sell off low-value assets, which began to include a stake in Soueast. In recent years, this Chinese company has been losing customers: after reaching a peak in 2013, when 116 thousand cars were sold, they slipped to 14 thousand in 2020 – by the standards of the Chinese car market, this is simply not serious. Soueast wants to reform their business and, apparently, move from gasoline models to electric vehicles.
A day earlier it became known that Nissan Motor sold its stake in Daimler AG for 1.15 billion euros. Renault left the capital of the German concern in March 2021, selling its stake for 1.14 billion euros.
Note that MMC continues to cooperate with another Chinese automaker – GAC Motor.
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