Mitsubishi Motors has stopped production and is preparing to trim the workforce at its joint venture with GAC Motor Co. as the partnership’s sales remain limited, according to Chinese media reports.
GAC-Mitsubishi suspended output in early June, reported Yicai and Jiemian, two Shanghai-based news websites.
On Wednesday, the joint venture notified employees internally about a planned workforce reduction, according to the two websites.
GAC-Mitsubishi, established in 2012, operates an assembly plant the central China city of Changsha which can build up to 200,000 vehicles annually.
With China’s light-vehicle market pivoting to electrified vehicles, sales at the joint venture, whose main products are gasoline-powered crossovers, have plunged in recent years.
China’s swift EV embrace has caught many western automakers off guard.
Annual deliveries at GAC-Mitsubishi shrank to some 33,600 in 2022 from a peak of about 144,000 in 2018, according to numbers GAC disclosed.
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