Mitsubishi Motors Sticking With China Despite Poor Sales - CEO
Takao Kato, CEO of Mitsubishi Motors, told reporters that no decisions have been made by the automaker about leaving the market, but a plan is underway to overcome difficulties in China.
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Mitsubishi Motors' Changsha plant in Hunan province shut down in March. Guangzhou Automobile Group Co, the Japanese carmaker's joint venture partner, then failed to list Mitsubishi's production and sales figures for the first time in April, sparking speculation that the two companies were parting ways. According to a GAC representative, the omission was made because Mitsubishi's production numbers make up a small portion of its total and were thus folded into the "others" category. Mitsubishi's plant, according to Kato, will reopen in June as planned, despite the difficult circumstances.
Mitsubishi's Outlander isn't selling well in China, where local firms like Warren Buffett-backed BYD Co dominate as Japanese manufacturers stagnate or slide, according to Kato. The automaker's retail sales in China fell to 32,000 units in the third quarter and are expected to fall again in the fourth quarter, the company said on Tuesday. “We’re discussing with our partners in China on how to move forward,” Kato said. “We’re watching the situation closely.”
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