Mitsubishi Expanding - Deals With Proton & China Motor

[JoeT]

Proton Strengthens Mitsubishi Ties

Byron Mathioudakis 14 February 2006
www.goauto.com.au

Proton and Mitsubishi Motor Corporation (MMC) signed an agreement last week for the latter to supply the Malaysian company driveline and mechanical components.

MMC will co-operate in the development of future Proton vehicles, supply components, technical support for production engineering and quality control, and assist in the optimisation of Proton’s manufacturing facility.

The aims are for Proton to diversify its product range, achieve better quality and improve its manufacturing processes.

As wrangling over contractual issues continued in Kuala Lumpur late last week between the board and former chief executive Tengku Mahaleel, Proton Cars Australia representatives told GoAuto in Melbourne that the agreement between its parent company and Mitsubishi should help ensure more business for MMC in Malaysia. Currently it imports complete vehicles from Japan.

Proton has also relied on various Mitsubishi components such as engines and transmissions for a number of its vehicles since it commenced operations in 1985. This is despite MMC selling its 7.9 per cent equity in Proton almost two years ago.

The agreement comes just two weeks after Volkswagen in Germany announced there would be no joint-venture with Proton after the two sides discovered they had "different ideas" on what the each wanted, although there is still scope for some "support" on isolated projects between them.

According to Proton Cars Australia general manager of sales and marketing, Steven Thomas, VW’s announcement paved the way for Mitsubishi to come forward.

"We have had a strategic alliance with Mitsubishi that’s been in place for some years," he told GoAuto last week.

"And there’s been some debate about whether that will continue because of our negotiations with VW for an actual formal joint venture.

"Those discussions have fallen over so we’ve re-negotiated our relationship with Mitsubishi and we’ll continue to have a relationship with them for the supply of some driveline and mechanical components."

Meanwhile, Proton will continue its new-model rollout, which from April 1 includes the Savvy five-door hatch unveiled in Melbourne.

The second-generation Satria will follow, springing from the Savvy platform and being pitched as a sportier three-door hatchback alternative.

To be offered with a 1.6-litre four-cylinder engine in regular and possibly turbocharged guises, the all-new Satria will have its world debut in May. An Australian launch is earmarked for September.

To aid Proton’s sales ambitions – which includes selling between 160 and 200 Savvy models per month – the company is planning to open four new dealerships this year, two each in Melbourne and Sydney.



Mitsubishi Motor To Buy Stake In China Carmaker

CRI Online 17 February 2006
www.chinabroadcast.cn

Japan's Mitsubishi Motors has reached an outline agreement to buy a stake of at least 20 percent in Chinese carmaker South East Motor (Fujian) from Taiwan's China Motor.

Mitsubishi Motors, Japan's fourth-largest automaker and the only one now in the red, wants to expand its presence in mainland China.

"We have agreed with China Motor that we will buy about 20-25 percent of the shares of South East Motor," said a spokesman for Mitsubishi Motors on Friday.

"By the purchase of the stake we aim to strengthen our operation in China although the details of the agreement are still under negotiation," he said.

An official at China Motor in Taipei confirmed an agreement had been reached in principle for it to sell a 20 percent stake in South East Motor (SouEast) to the Japanese automaker.

The SouEast venture, established in 1995 with registered capital of 138 million dollars, was set up as a 50-50 joint venture between China Motor Corp and China's Fujian Motor Industry Corp.

Fujian Industrial Motor Group's stake in SouEast will remain unchanged while China Motor will retain 30 percent after the sale to Mitsubishi.

Mitsubishi Motors has previously said it planned to participate in the management of SouEast and make it a production and sales center of Mitsubishi cars in China.

The deal will be Mitsubishi's second investment in a Chinese automaker. It already has a 16 percent stake in Changfeng Motor.

The Chinese mainland newspaper China Business News cited a top executive from China Motor as saying the deal would be wrapped up next month, ending negotiations that began more than two years ago.

SouEast, a relatively minor player in China's booming auto market, has struggled as bigger rivals such as Honda and Toyota have battled for supremacy in the world's fastest growing market.

SouEast sales in 2004 slumped to 60,069 units from 83,533 units a year earlier, according to the company's website.

In May, SouEast's sales outlets will be integrated into the Mitsubishi network while new SouEast cars will also carry the Mitsubishi brand, the website says.

Newly produced SouEast models will have Mitsubishi technology as well access to the company's after-sale services.

[kenman923]

Maybe there's hope for Mitsubishi yet. Who knows, they could even improve on their quality.

[DanCBJMS1988]

Protons have always been rebadged last-gen Mitsubishis. Look at the Proton Satria or Wira, for instance. They were last-gen Mitsubishi Colts and Lancers, respectively. Proton still uses ancient Mitsu engines in their cars, FCOL. As for China Motor, this was relatively new. I knew Mitsu built special models for the Taiwanese market, but not through China Motor. Guess this is like Yulon with Nissan.

[Bravada]

You must have missed the new generation of Protons, which have much less in common with Mitsubishi Lancer/Colt, at least in appearance - the Waja/Impian, the Gen2 and the Savvy. Of course they aren't wonder cars - Proton has been said to would have been better off sticking with taking outgoing Mitsubishi models rather than developing their own.

The deal seems to confirm two things:
1. The nationalistic approach behind Proton will prevent anybody from actually taking them (and a huge chunk of Malaysian market) over.
2. The new models have been really slow sellers if Proton has to revert to "cooperation" with other automakers.

[DanCBJMS1988]

Bravada, if I remember correctly, the GEN-2 was really no more than just a refreshened Wira, so still the Mitsu connections still show through. The Impian still uses Mitsubishi engines, so again another Mitsu connection. So there you go.

[Bravada]

Didn't say they have nothing in common with Mitsubishis - I meant they are much more than rebadges (totally different body at least).