Shanghai (ZXZC)- On October 24, GAC Group issued an announcement, saying its board of directors has approved the "Announcement of Related Transactions Regarding the Restructuring of GAC Mitsubishi." The restructuring plan involves equity adjustments within GAC Mitsubishi and GAC Mitsubishi Automobile Sales Company.

Mitsubishi Airtrek; photo credit: GAC Mitsubishi

Upon completion of this restructuring, GAC Mitsubishi will become a wholly-owned subsidiary of GAC Group, while GAC AION will leverage the facilities of GAC Mitsubishi to lift its production capacity. Besides, GAC Mitsubishi Automobile Sales Company will be jointly held by GAC Group, Mitsubishi Motors, and Mitsubishi Corporation, ensuring continued provision of spare parts and after-sales service to GAC Mitsubishi's vehicle owners.

GAC AION's AION series products; photo credit: GAC Group

As a critical pillar of GAC Group's new energy vehicle business, GAC AION demonstrated robust performance in September, once again breaking the 50,000-unit sales threshold. With cumulative sales of around 351,000 vehicles from January to September this year, it attained a remarkable 92.51% year-on-year growth. To keep pace with the robust sales growth, GAC AION is intensifying production efforts. On the foundation of its existing annual production capacity of 400,000 vehicles, it is striving to achieve a production and sales target of 500,000 units for the entire year. It is evident that enhancing production capacity is an urgent priority for GAC AION.

After the restructuring is finalized, GAC Mitsubishi will transition into a wholly-owned subsidiary of GAC Group, and 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.

The announcement underscores that GAC Mitsubishi Automobile Sales Company will continue to provide high-quality spare parts and top-tier after-sales service to car owners. Simultaneously, this restructuring effort effectively avoids the dissolution and liquidation issues of GAC Mitsubishi, safeguarding consumer rights and assisting employees in finding new jobs.