GAC Mitsubishi Motors announces major reforms and faces temporary production suspension

According to news on July 13, GAC Mitsubishi Motors Co., Ltd. issued a letter to all employees on July 12, announcing that the company will face major reforms.

In order to cope with the challenges brought about by market transformation, GAC Mitsubishi stated in the letter that the company must have the courage to make decisions and actively promote reforms. Due to the impact of market transformation, the company's product sales fell far short of expectations and fell into operating difficulties. After in-depth discussions, the company's management and shareholders decided to officially enter the "temporary production suspension" stage starting in June.

#In order to ensure the company's sustainable development, GAC Mitsubishi stated that it needs to optimize its personnel structure to achieve orderly advancement and stability of work. To this end, the company announced its employee placement plan that day and promised to fully communicate and reasonably resolve employees' legitimate demands and protect employees' legitimate rights and interests to the greatest extent. Although the specific employee placement plan has not been made public, the company said it will try its best to meet the needs of employees.

Due to the popularity of electric vehicles in the Chinese market, reports show that sales of traditional fuel vehicles have fallen sharply, which has had an impact on Mitsubishi Motors. Mitsubishi Motors suspended new car production in China from March to May this year in response to the current situation. Now, the shutdown has been extended to June, and the date for resumption of production has not yet been determined.

Mitsubishi Motors’ joint venture plant in Hunan mainly produces SUV models such as Outlander. According to the editor's understanding, Mitsubishi's car sales in China in fiscal year 2022 are only 31,800 units, which is half the number compared with last year.

In response to increasing competitive pressure from Chinese and European rivals in the field of electric vehicles and hybrid vehicles, Mitsubishi Motors plans to invest 1.4 trillion yen (approximately 705.6 billion yuan) in fiscal 2030. R&D and production of electric vehicles (EV) and hybrid vehicles (HV). This investment aims to enhance Mitsubishi Motors' competitiveness in the new energy vehicle market.

The above is the detailed content of GAC Mitsubishi Motors announces major reforms and faces temporary production suspension. For more information, please follow other related articles on the PHP Chinese website!