Legendary car brand pulls out of country shutting huge factory

A major car brand has pulled out of one of the biggest international markets after confirming a partnership will end. Japanese marque Mitsubishi has confirmed plans to "terminate" its engine business operation in China, pulling back from the region after almost 30 years.

The Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co. has helped supply engines to Mitsubishi models based in the region. However, the top brand confirmed a joint venture would close, blaming the "transformation" of China's automotive sector for the change. The move is just the latest region Mitsubishi has exited after withdrawing from the UK and Europe back in 2020.

A statement read: "Mitsubishi Motors Corporation (hereafter, Mitsubishi Motors) announced the termination of its engine business operation at Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd. (hereinafter, SAME) in China and has terminated the joint venture partnership.

"Established in August 1997, SAME began engine production in 1998 and has played a key role in China's expanding automotive market by supplying engines not only to Mitsubishi-branded vehicle manufacturers, but also to numerous Chinese automakers.

"However, in response to the rapid transformation of China's automotive industry, Mitsubishi Motors has reassessed its strategy in the region and has decided to terminate its participation in the joint venture."

There has been a major shift in the Chinese market in recent years with consumers gravitating towards affordable low low-energy vehicles.

Chinese brands such as BYD, Leapmotor and Chery have gained serious traction in Asia and are now set to take on the Western market. Mitsubishi confirmed it would pull out of the UK and Europe back in 2020 as part of a cost-saving strategy during the pandemic.

Instead, the brand decided to focus on more profitable markets, such as its Asia base. This decision meant that Mitsubishi would not introduce new cars to the UK or European markets.

However, earlier this summer, the Japanese brand expressed its desire to return to the UK with new models sometime in the near future. Frank Krol, President and CEO of Mitsubishi Motors Europe, stressed that a sibling to the Scenic and a possible new Outlander PHEV could be brought to a UK audience.

He said: "It is not preferred to have an extremely long period without any sales presence. That's something we would need to consider."