Mitsubishi Motors Corporation (MMC) and Guangzhou Automobile Group (GAC Group), each holding a 14.59% and 29% stake in GAC Changfeng Motor (GAC Changfeng) respectively, have signed a memorandum of understanding (MOU) to make GAC Changfeng into a new new joint venture owned 50% each by MMC and GAC Group.
“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,” the pair said in a joint statement.
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GAC Group plans to delist GAC Changfeng from the Shanghai stock exchange. The new joint venture will begin operations after a share transfer agreement, joint venture agreement, and related agreements are signed, and permission and authorisation is granted by relevant authorities.
GAC Group, also a Honda, Toyota and Fiat partner in China, is one of the main players in the local automobile industry and is the largest car company in the Huanan region. It is well known within the industry for its high profitability. MMC said it had a long history of operating in China and aims to “further strengthen its Chinese business through the building of the collaborative relationship with GAC Group”.
