Legendary car brand pulls out of country forever as it shuts massive engine factory in move to rival Tesla

Scottish Sun

01-08-2025

The carmaker is shifting its focus to electric vehicles
KICKED TO KERB Legendary car brand pulls out of country forever as it shuts massive engine factory in move to rival Tesla
A LEGENDARY car brand has called it quits in one of the world's biggest automotive markets, shutting down a major factory and ending local production for good.
The firm has officially pulled out of China after decades of operations, closing its joint engine venture and handing over its factory to a domestic rival as it pivots towards electric vehicles.
2
Mitsubishi's relationship with China stretches back to 1973, when it began shipping mid-sized vehicles to the market
Credit: YouTube / Mitsubishi Motors Europe
SAME, which began producing engines in 1998, supplied not only Mitsubishi vehicles but also powertrains for a host of Chinese automakers.
It will now operate under a new name: Shenyang Guoqing Power Technology Co., Ltd.
Mitsubishi said it has: "terminated 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."
Mitsubishi's relationship with China stretches back to 1973, when it began shipping mid-sized vehicles to the market.
At one point in the early 2000s, its engines powered nearly 30 per cent of cars built in the country.
But as China's car industry turned sharply toward new energy vehicles (NEVs), demand for traditional engines plummeted.
In 2012, Mitsubishi joined forces with Guangzhou Automobile Group (GAC) and Mitsubishi Corporation to launch GAC Mitsubishi.
The joint venture saw strong early success, especially with the Outlander SUV, which pushed sales to 144,000 units in 2018.
But it didn't last - sales crashed to just 33,600 vehicles by 2022.
Nissan 'on brink of collapse' after Renault deal falls through
By the following year, Mitsubishi shut down local production and, in 2024, exited the market entirely. GAC has since taken over the plant and turned it into a production base for its EV brand, Aion.
Industry analysts say Mitsubishi's retreat is just the latest in a broader trend.
Foreign carmakers are losing ground in China as homegrown brands surge ahead in the electric vehicle market. GAC-FCA, a joint venture with Fiat Chrysler, also folded under similar pressures.
Mitsubishi says the decision is part of a strategic shift as it focuses on electrification and more competitive global markets.
But in China, the brand that once powered nearly a third of the country's cars is now just a memory.
The collapse of its Chinese business is a blow for the brand, which had hoped to hold on in the world's biggest car market.
But with EV start-ups popping up at lightning speed and government backing for green tech, Mitsubishi simply couldn't keep up.
The factory closure also means job losses for hundreds of local workers, with some fearing they'll struggle to find work in an industry moving away from fossil fuels.
One former worker said: 'We saw the writing on the wall last year. EVs are the future, and we weren't part of that plan anymore.'
It's a bitter end for a brand once considered a key player in Chinese motoring.
Now, it's packing up — leaving behind empty factories, lost jobs and a name that once meant something on Chinese roads.
The Sun has approached Mitsubishi for comment.
Iconic car brand 'on brink of collapse' as 'bosses warn company has just 12 months to survive'
ONE of the world's largest car manufacturers reportedly could go under within 12 months if it doesn't receive support.
The firm is looking to sure up its future by growing a partnership with its former rival after the reported collapse of a three-way alliance.
Nissan was one-third of a strategic deal with Mitsubishi and Renault to share financial backing and expand all their markets in Europe, Japan and the US.
The agreement dates back to 1999 but now could be on the brink of collapse.
A report from the Financial Times cites two anonymous "senior officials" at the firm suggesting that Renault is looking to reduce its financial stake in the Japanese carmaker.
The withdrawal of funding means, according to the same sources, that Nissan could require support from the Japanese or US governments within the next year just in order to stay afloat.
One of the officials said: "We have 12 or 14 months to survive.
"This is going to be tough.
"And in the end, we need Japan and the US to be generating cash."
Nissan has already cut 9,000 jobs across its global operation, while its CEO Makoto Uchida took a 50% pay cut in an economy drive.
The business is working through an emergency recovery plan, which will see it cut output by 20% and slash around £2bn in costs.
Its struggles have partly been blamed on the lack of a strong hybrid lineup, which has helped rivals like Toyota and Honda through the global collapse in EV sales.
In a press conference earlier this month, Mr Uchida said: "This has been a lesson learned and we have not been able to keep up with the times.
"We weren't able to foresee that hybrid electric vehicles and plug-in hybrids would be so popular."