JAPAN: Mitsubishi Motors Corporation (MMC) has announced two major milestones in the expansion of its China business. GAC Mitsubishi Motors (GMMC), the joint venture business in China between the MMC, the Guangzhou Automobile Group (GAC) and Mitsubishi Corporation has begun production of 4B4 and 4J1 engines, and also held a groundbreaking ceremony for the company’s R&D Centre which will be completed in 2020.
This new engine plant will have an annual production capacity of 200,000 units which will be the plant’s standard operating base. It will also produce the new 1.5L direct-injection turbocharged gasoline engine or 4B4 engine, that has a high environmental performance and will be fitted to the Eclipse Cross SUV. In addition, the plant will make the 4J1 engine for the locally-produced Outlander SUV.
Producing the engines locally will enhance cost competitiveness and further strengthen the company’s market position in the world’s largest automotive market. In addition to increasing employment at the new factory, the production will result in more jobs in the supply chain.
Mitsubishi Motors will launch the Eclipse Cross on the market this fall to expand its product lineup and strengthen its SUV brand as well as support the local sales network.
GMMC has also agreed with Changsha City to expand and relocate to a newly established R&D center with a site area of 41 hectares, including a test course. The center will further strengthen GMMC’s technological development functions to meet the local market needs for China.