— Mitsubishi Motors Corporation announced today that it had signed a memorandum of understanding (MOU) with China Motor Corp.1 (CMC) of Taiwan in connection with expanding the business operations of South East (Fujian) Motor Co., Ltd.2 (SEM), a subsidiary of CMC based in Fujian Province. The move is designed to build up MMC's production and sales organization in China. MMC is planning to participate in the management of SEM in the near future.
MMC already has equity shares in three enterprises in China: two engine-manufacturing companies — Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd. and Harbin Dongan Automotive Engine Manufacturing Co., Ltd. — and Hunan Changfeng Motor Co., Ltd. The MOU with CMC opens the way for MMC to further boost its operations in Mainland China in the event MMC joins the management of SEM. The parties involved are due to hold discussions covering the form management participation will take, the scale of equity investment and other details.
The increase in private vehicle ownership in China today means the country's automotive market offers considerable growth potential. MMC is planning to both reorganize its operations and to boost sales in China utilizing SEM as a key facility for the production and sales of MMC-developed vehicles.
| |
1 |
Established in 1969 in Yang Mei, Taiwan. Entered a technological collaboration with MMC in 1970 covering the manufacture of automobiles. MMC currently owns a 13.97% stake in the company. CMC is the second largest auto company in Taiwan with sales of 86,000 vehicles in calendar 2003. Major models in its lineup include the Lancer, Savrin (Chariot Grandis in Japan), Space Gear, Freeca and Delica. The CMC head office is located in Taipei. |
| 2 |
Established in Fujian Province as a joint venture between Fujian Motor Industrial Corporation and CMC. Posted sales of around 84,000 vehicles in calendar 2003. Major models in lineup include the Lioncel (Lancer in Japan), Soveran (Chariot Grandis), Freeca and Delica. |
