The decision of the Japanese Mitsubishi to withdraw from China
Mitsubishi Motor announced that due to the decline in its sales in China it decided to stop vehicle production in this country and withdraw from China.
Japanese manufacturers active in China are negatively affected by falling sales in this country and the rapid increase in the Chinese domestic market’s trend towards electric vehicles.
The statement from Mitsubishi Motor’s board of directors stated that sales targets were not achieved as planned and production was suspended in March 2023.
In the statement where it was reported that the commercial strategy in China was updated and a structural reform was carried out, it was announced that local production would be stopped and sales of new vehicles would end when stocks ran out.
The decision to withdraw from the Chinese market is expected to result in extraordinary losses of 24 billion yen ($160 million), covering fiscal year 2023 ending in March 2024.
It was stated that the Japanese company, which decided to withdraw after negotiations with its local manufacturing partner, could move its production resources to the Southeast Asian market. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
