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].

Core Viewpoint - Mitsubishi Motors has announced the termination of its joint venture with Shenyang Aerospace Mitsubishi Engine Manufacturing Co., effectively exiting the engine business in China, marking a significant decline from its previous status as a key player in the domestic automotive industry [2][3]. Group 1: Historical Context - Mitsubishi Motors played a crucial role in the development of China's automotive industry in the 1990s, providing essential engine technology when domestic brands were lacking [3]. - The establishment of Shenyang Aerospace Mitsubishi in 1997 led to the production of the 4G6 series engines, which became widely adopted by over 700 domestic car manufacturers, capturing 30% of the domestic engine market [3]. Group 2: Current Challenges - As Chinese automotive brands advanced in technology, their reliance on Mitsubishi engines decreased, particularly as the industry shifted towards electric vehicles, where Mitsubishi struggled to compete [4]. - Mitsubishi has not launched a new model in China for six years, leading to a continuous decline in market share [4]. - GAC Mitsubishi, established in 2012, peaked at 144,000 units sold in 2018 but saw sales plummet to 33,600 units in 2022, with financial troubles culminating in a negative net asset of -1.414 billion yuan by March 2023 [4]. Group 3: Financial Performance - Shenyang Aerospace Mitsubishi reported revenues of 1.339 billion yuan and a net loss of 62.527 million yuan in 2024, with Q1 2025 showing revenues of 301 million yuan and a net loss of 23.675 million yuan [5]. - The exit of Mitsubishi Motors from the Chinese market reflects a broader trend where weak joint ventures are being squeezed out as local brands gain strength [5]. Group 4: Industry Implications - The departure of Mitsubishi Motors serves as a warning to other foreign automotive brands, emphasizing the need to adapt to market changes and consumer demands, especially during the critical transition to electric vehicles [5].

Core Viewpoint - Mitsubishi Motors has announced its complete withdrawal from all joint ventures in China, marking the end of its 40-year presence in the Chinese automotive market due to the rapid shift towards electrification in the industry [1][2][4]. Group 1: Mitsubishi's Withdrawal - Mitsubishi Motors has exited its joint venture with Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., which has been renamed Shenyang Guoqing Power Technology Co., with Beijing Saimu Technology taking over 49% of the shares [1]. - The decision to terminate the joint venture is part of a broader strategic reassessment of the market environment in China, as the company aims to reposition itself amid the fast-paced evolution of the electric vehicle market [2]. - This exit signifies a significant shift for Mitsubishi, which had previously established a foothold in China through various joint ventures and partnerships since the 1970s [2][4]. Group 2: Sales and Financial Performance - Guangqi Mitsubishi's sales peaked at 144,000 units in 2018, with the Outlander model accounting for 70% of total sales, but have since declined significantly, with sales dropping to 33,600 units by 2022 [3]. - Financially, Guangqi Mitsubishi reported total assets of 4.198 billion yuan and total liabilities of 5.613 billion yuan as of March 31, 2023, resulting in a negative net asset value of 1.414 billion yuan, indicating insolvency [3]. Group 3: Industry Implications - Mitsubishi's exit is seen as a reflection of the broader challenges faced by Japanese automakers in China, with other brands like Suzuki also withdrawing from the market [4]. - The decline in sales for major Japanese brands in China is evident, with Toyota, Honda, Nissan, and Mazda all experiencing varying degrees of sales drops in 2024, highlighting the competitive pressures in the market [4][5].

Group 1 - Mitsubishi Motors announced the termination of its engine business operations at Shenyang Aerospace Mitsubishi Engine Manufacturing Co., marking its complete exit from the Chinese market [1][2] - Shenyang Aerospace Mitsubishi Engine Manufacturing Co. was renamed Shenyang Guoqing Power Technology Co. on July 2, 2023, with Mitsubishi Corporation and Mitsubishi Motors withdrawing as investors [2] - Mitsubishi Motors has a historical presence in the Chinese market dating back to the 1970s, initially importing trucks and later establishing joint ventures in the 1990s [2][5] Group 2 - Mitsubishi's joint ventures in China, including Shenyang Aerospace and Harbin Dong'an, once supplied engines to numerous domestic manufacturers, capturing a 30% market share in the domestic vehicle market [2] - In the early 2000s, Mitsubishi's annual sales in China exceeded 140,000 units, but competition intensified with the rise of other Japanese automakers and domestic brands [5][7] - Sales for Guangqi Mitsubishi plummeted from over 100,000 units in 2020 to around 30,000 units in 2022, leading to the decision to gradually terminate joint ventures [7]