Core Viewpoint - Mitsubishi Motors is set to officially exit the Chinese market by 2025, primarily due to ongoing losses at GAC Mitsubishi and a slow response to the electrification transition [1][15][16]. Group 1: Historical Context - Mitsubishi Motors began its journey in China in the 1980s, with the establishment of Shenyang Aerospace Mitsubishi in 1997 marking a significant turning point, as its 4G6 engine series became crucial for many early domestic brands [3][4]. - At its peak, Mitsubishi engines powered 30% of domestic vehicles, earning it the title of "father of domestic cars" [4][6]. - The Pajero, a legendary off-road vehicle, became a symbol of Mitsubishi's success, achieving multiple Dakar Rally championships and high market share in the 1990s [6][10]. Group 2: Decline and Challenges - The decline of Mitsubishi's reputation in China began with a brake line incident in 2000, leading to a series of product stagnations and failures to innovate [9][10]. - From 2016 onwards, Mitsubishi struggled with product updates, with models like the 2018 Outlander lagging behind competitors in technology [9][10]. - The company's sales in China plummeted, with GAC Mitsubishi's net assets dropping to negative 1.415 billion yuan by mid-2023, leading to the closure of its operations [16][18]. Group 3: Market Dynamics - The rapid rise of electric vehicles in China, with penetration rates soaring from 5% in 2018 to over 50% by mid-2025, left Mitsubishi behind due to its rigid decision-making processes [10][17]. - Despite attempts to pivot towards electric vehicles, Mitsubishi's first pure electric model, the Atto 3, launched in 2022, failed to gain traction, with monthly sales remaining in the double digits [15][16]. - The exit of Mitsubishi reflects broader trends of foreign automakers struggling in the Chinese market, with brands like Jeep and Acura also ceasing operations [19][20]. Group 4: Future Outlook - Mitsubishi plans to shift its focus to the U.S. market, collaborating with Nissan to produce SUVs, while its former manufacturing facilities in China are being repurposed by domestic brands for R&D [18][22]. - The automotive landscape in China is evolving rapidly, with domestic brands like BYD and Geely outperforming traditional players, indicating a significant shift in market dynamics [20][21].

Group 1 - Mitsubishi Motors Corporation is raising the prices of certain models in the U.S. market by an average of 2.1% due to the impact of tariffs imposed by President Donald Trump on imported cars and parts [1] - The price increase will apply to gasoline versions of the Outlander, Outlander Sport, and Eclipse Cross models, effective for vehicles delivered after the price adjustment [1] - The Japanese automotive industry is facing a potential loss of $19 billion due to these tariffs, which could also affect the Japanese national economy [1] Group 2 - The automotive industry accounts for approximately 10% of Japan's GDP and one-third of Japan's exports to the U.S., making it a critical sector for the Japanese economy [2] - Japanese Prime Minister Shigeru Ishiba is under pressure to negotiate with Trump to reduce the 25% tariffs on imported cars and parts, but no trade agreement was reached during the G7 summit [2] - Several automakers are adjusting their strategies in response to the tariffs, with Honda delaying its $11 billion electric vehicle supply chain expansion in Canada and Subaru reassessing all investments [2]