Feb. 2 (Bloomberg) -- Mitsubishi Motors Corp. said it plans to form a new Chinese joint venture by the end of September with Guangzhou Automobile Group Co. to increase control of operations in the world’s biggest car market.
The new venture, half-owned by each company, will make Mitsubishi Motors’ Pajero sport-utility vehicles and have capacity for 250,000 automobiles annually within five years, more than double that of the current GAC Changfeng Motor Co. partnership, Yuki Murata, a spokesman for Tokyo-based Mitsubishi Motors said. The Japanese automaker owns about 14.6 percent of the current venture.
Guangzhou Auto, which also assembles vehicles with Japan’s Toyota Motor Corp. and Honda Motor Co., plans to buy GAC Changfeng under a plan to gain a listing for the parent company in Shanghai, according to the Guangdong, China-based automaker. Guangzhou Auto declined to comment, said Abbey Zhao, a Hong Kong-based external spokesman.
Mitsubishi Motors, which also owns a 25 percent stake in Southeast (Fujian) Motor Corp., agreed to sell its stake in GAC Changfeng in March last year.
--Masatsugu Horie, Liza Lin. Editors: Youngsam Cho, Dave McCombs
--Masatsugu Horie and Liza Lin. Editor: Young-Sam Cho, Dave McCombs
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