Mitsubishi Motors says sticking with China despite poor sales

TOKYO: Mitsubishi Motors Corp. has refuted reports that it plans to bow out of China as competition among automakers there continues to intensify.

"No decisions have been made about leaving the market but it has become clear we need a plan to overcome difficulties in China,” chief executive officer Takao Kato told reporters at a media briefing in Japan today.

Mitsubishi Motors’ plant in Changsha, Hunan province suspended production in March.

The Japanese carmaker’s joint venture partner, Guangzhou Automobile Group Co. (GAC), then didn’t list the production and sales numbers for Mitsubishi for the first time in April, triggering speculation the two companies were cutting ties.

A representative from GAC said the omission was made because Mitsubishi’s production numbers make up a small portion of its total and they were therefore folded into the "others" category.

Kato said today Mitsubishi’s plant will reopen in June as planned, although circumstances remain difficult.

Mitsubishi’s Outlander isn’t selling well in China, Kato said, where local firms like Warren Buffett-backed BYD Co. are dominant as Japanese makers continue to stagnate or slide.

The automaker’s retail sales in China dropped to 32,000 units in the third quarter and those numbers are expected to decline again for the quarter that ended March, the company said today.

"We’re discussing with our partners in China on how to move forward,” Kato said. "We’re watching the situation closely.”