Jul 14, 2023 02:23 AM

BUSINESS

GAC’s Joint Venture with Mitsubishi Halts Productions, Cuts Jobs After Slow Sales

By Qi Zhanning and Denise Jia

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As of the end of 2022, GAC Mitsubishi had assets of 6.06 billion yuan ($846 million) and total debt of 5.95 billion yuan.

As of the end of 2022, GAC Mitsubishi had assets of 6.06 billion yuan ($846 million) and total debt of 5.95 billion yuan.

A Chinese joint venture between Japanese carmaker Mitsubishi Motors and China's Guangzhou Automobile Group has suspended production and began staff cuts due to low sales and difficulties in going electric, GAC confirmed with Caixin on Thursday.

GAC Mitsubishi halted production in June, but still hopes to resume operations by seizing the opportunity of becoming an electric vehicle manufacturer, general manager Tomoda Yusuke and executive deputy general manager Li Quming said in an internal memo.

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