TOKYO, Nov 5, 2010 - (ACN Newswire) - Mitsubishi Motors Corporation (MMC) and Guangzhou Automobile Group Co., Ltd. (GAC Group), each holding a 14.59% and 29.0% stake in GAC Changfeng Motor Co., Ltd. (GAC Changfeng) respectively, have signed a Memorandum of Understanding (MOU) to make GAC Changfeng into a new limited partnership corporation (new joint venture) owned 50% each by MMC and GAC Group.
Based on the MOU, both MMC and GAC Group will proceed to deliberate on models to be introduced, action plans, and production capacity plans, aiming to make the new joint venture company a base for collaborative business in China.
Moving forward, in order to make GAC Changfeng into the new joint venture, GAC Group plans to delist GAC Changfeng from the Shanghai Stock Exchange, and will begin delisting procedures.
The new joint venture is slated to begin operations after a share transfer agreement, joint venture agreement, and related agreements are signed, and permission and authorization is granted by relevant authorities.
GAC Group is one of the main players in the Chinese automobile industry, and is the largest car company in the Huanan region. It is well known within the industry for its high profitability. MMC, a Japanese car maker, has a long history of operating in China and it aims to further strengthen its Chinese business through the building of the collaborative relationship with GAC Group.
About Mitsubishi Motors
MITSUBISHI MOTORS CORPORATION is a global automobile company based in Tokyo, Japan, which has a competitive edge in SUVs and pickup trucks, electric and plug-in hybrid electric vehicles. Since the Mitsubishi group produced its first car more than a century ago, we have demonstrated an ambitious and often disruptive approach, developing new vehicle genres and pioneering cutting-edge technologies. Deeply rooted in MITSUBISHI MOTORS' DNA, our brand strategy will appeal to ambitious drivers, willing to challenge conventional wisdom and ready to embrace change. Consistent with this mindset, MITSUBISHI MOTORS introduced its new brand strategy in 2017, expressed in its "Drive your Ambition" tagline - a combination of personal drive and forward attitude, and a reflection of the constant dialogue between the brand and its customers. Today MITSUBISHI MOTORS is committed to continuous investment in innovative new technologies, attractive design and product development, bringing exciting and authentic new vehicles to customers around the world.
Public Relations Department
Source: Mitsubishi Motors
Topic: Business Tieup
From the Asia Corporate News Network
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