— Mitsubishi Motors Corporation (MMC) signed a Memorandum of Understanding on December 28 2004 with China Motor Corporation1 (CMC) in connection with expanding the business operations of CMC subsidiary South East (Fujian) Motor Co., Ltd.2 (SEM). Today it was decided that Mitsubishi Motors will make a direct investment in SEM and enter a joint-venture agreement with Fujian Motor Industrial Corporation and CMC. With this agreement, MMC's China operations, including local sales and production of Mitsubishi brand vehicles, are being strengthened.
The investment announced today is the company's fourth equity investment in mainland China, the others being engine manufacturers Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd. and Harbin Dongan Automotive Engine Manufacturing Co., Ltd., along with automobile manufacturer Hunan Changfeng Motor Co., Ltd.
With the expansion seen in vehicle ownership in recent years, China is regarded as a promising growth market. By making SEM a keystone production and sales unit for its vehicles, MMC is working to reinforce its operations and to further expand its sales in mainland China. Going forward, models suited to the Chinese market will be launched, and the lineup of Mitsubishi brand vehicles will be solidified.
||Established in 1969 in Yang Mei, Taiwan, CMC entered a technological collaboration agreement with MMC in 1970 covering the manufacture of automobiles. MMC currently owns a 13.97% stake in the company. CMC is the second largest auto company in Taiwan with sales of about 76,600 vehicles in calendar 2005. Major models in its lineup include the Lancer, Savrin (Chariot Grandis in Japan), Space Gear, Freeca and Delica. The CMC head office is located in Taipei.
||Established in Fujian Province in November 1995 as a 50/50 joint venture between Fujian Motor Industrial Corporation and CMC. SEM posted sales of around 60,000 vehicles in calendar 2005. Major models in its lineup include the Lioncel (Lancer in Japan), Soveran (Chariot Grandis), Freeca and Delica.