GAC Mitsubishi Motors (GMMC), the joint venture between Mitsubishi Motors and Guangzhou Automobile Group (GAC), has commenced operations at its facility in Changsha, in China’s Hunan province.
The JV will produce and sell Mitsubishi-branded cars in China. GMMC has taken over the plant that was previously used by GAC Changfeng Motor. It has also inherited a supply chain, a distribution channel, and marketing know-how from the company.
The JV was established on 25 September 2012, with capital of Yuan 1.7bn (US$269.5m). GAC holds 50% of the venture, while Mitsubishi Motors holds 33%. The remaining 17% is held by Mitsubishi Corporation.
GMMC will start by producing the 2013 ASX compact SUV beginning in late-October. The JV also plans to add build of the Pajero Sport SUV to its production line-up. At present, this plant has output capacity of 50,000 vehicles per year.
