Shanghai (ZXZC)- According to a recent update from China's National Enterprise Credit Information Publicity System, GAC Mitsubishi Motors Co., LTD. ("GAC Mitsubishi") underwent a business change, renaming itself as Hunan Zhixiang Automobile Management Co., Ltd. ("Zhixiang" is Chinese Pinyin).

Additionally, Mitsubishi Motors Corporation and Mitsubishi Corporation have exited the list of shareholders of GAC Mitsubishi. The company's business scope has also expanded to newly include the sale of complete new energy vehicles, mechanical parts, component sales, and parking services.

Outlander; photo credit:  GAC Mitsubishi

GAC Mitsubishi, now named Hunan Zhixiang, founded in May 2012 with a registered capital of 1.947 billion yuan, is presently wholly owned by GAC Group.

This followed a significant business restructuring that grabbed great attention from industry insiders.

On October 24, 2023, GAC Group released a notice regarding the approval of a related party transaction for the restructuring of GAC Mitsubishi. The proposed measures included equity adjustments for both GAC Mitsubishi and GAC Mitsubishi Automobile Sales Co., Ltd.

According to the announcement, GAC Group intended to acquire a 30% stake from Mitsubishi Motors Corporation and a 20% stake from Mitsubishi Corporation in GAC Mitsubishi, with a nominal consideration of 1 yuan. Following the completion of these transactions, GAC Mitsubishi would become a wholly-owned subsidiary of GAC Group. Concurrently, GAC Mitsubishi Automobile Sales Co., Ltd. would continue to be jointly held by GAC Group, Mitsubishi Motors Corporation and Mitsubishi Corporation, ensuring the ongoing provision of spare parts and after-sales services for GAC Mitsubishi's vehicle owners.

After the restructuring is finalized, GAC AION will use GAC Mitsubishi’s facilities to expand production capacity, aiming for mass production by June 2024. Once completed, GAC AION's production capacity will reach 600,000 units per year, providing a solid foundation for achieving its strategic goal of 1 million units in production and sales by 2025.

GAC Mitsubishi was set up in 2012 as a joint venture between GAC Group, Mitsubishi Motors Corporation, and Mitsubishi Corporation. In 2016, the Outlander model was officially produced domestically, propelling the joint venture's overall sales to new heights. Sales data indicates that from 2017 to 2018, GAC Mitsubishi achieved impressive sales figures of 117,000 and 144,000 units, respectively. However, after a brief prosperous period, GAC Mitsubishi entered a downward trajectory, experiencing a "four consecutive decline" in annual sales, with only 33,600 new cars sold in 2022.