Tokyo, Nov 5, 2010 - (JCN 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 (TSE: 7211) was established in 1970 and is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer financing services and provides this to its customer base. For more information, please visit www.mitsubishi-motors.com .
Contact:
Mitsubishi Motors
Public Relations Department
http://www.mitsubishi-motors.com
+81-3-6852-4275
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