Japanese carmaker Mitsubishi Motors has decided to pull out of car production in China, according to a report by Nikkei, which said late on Wednesday that it would withdraw from its joint venture with Guangzhou Automobile Group (GAC), as sales had been sluggish because electric vehicles made by local brands had become popular.
Mitsubishi Motors said in May it had suspended production of its Outlander SUV in China for three months and would take a charge of $77 million for slowing sales – down 58% from 2022 – at its joint venture with state-owned GAC Group. Nikkei said GAC Mitsubishi has a factory in Hunan province but production stopped in March and would not be resumed.
Read the full report: Nikkei Asia.
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