Suspense of Mitsubishi：stay or leave？

Citing an undisclosed source from Beijing Youth Daily , the list of Gacchangfeng Motor Corporation’s new board of directors was released last week, marking the ending of this 1.005 billion Yuan connected case, which is also the first one after the revitalization plan of automobile industry was published. From the moment on, Guangzhou Automobile Group officially became the captain of Gacchangfeng Motor Corporation.

　　There was is even no suspense in the list that seven seats were taken by three major shareholders.

Holding 29% of the shares, Guangzhou Automobile Group holds becomes the largest shareholder; the second and third largest shareholder are respectively Changefeng Group and Mitsubishi Motors, with 21.98% and 14.59% of the shares. After the new Board is elected, Guangzhou Automobile Group win three seats while Changefeng Group and Mitsubishi Motors each occupy two, forming a situation of tripartite confrontation. Among them, Zhangfang, president of Guangzhou Automobile Group will be also the new chairman of Gacchangfeng Motor Corporation and Li Jianxin vice-chairman. Meanwhile, the new Board also wishes to establish a new ‘strategic committee’ which can be responsible for researches and recommendations in the corporation’s long-term development strategy and major investment.

The new board of directors has already surfaced, but the future of Mitsubishi Motors is still a problem to be resolved. The saying that ‘Mitsubishi’s shares of the Gacchangfeng Motor Corporation will increased to 16%’ was spreading before the General Assembly of the shareholders. In fact, Mitsubishi holds its original shares according the General Assembly of the shareholders held recently. However, the future of Mitsubishi is still uncertain. There is possibility that Guangzhou Automobile Group will successively purchase the shares of Mitsubishi to obtain the absolute control.

With the election of the new board of directors, the new strategic plan of Gacchangfeng Motor Corporation is also emerging, which is, to ensure a production and sales of 46,000 units and to strive to reach 50,000 units. It is noteworthy that according to the former planning of Changfeng, the target is 100 thousand units. Not to mention that Acumen sedan, Changfeng’s first middle-class model will be available in the market in the first half of next year and Acumen hatchback will be introduced in the next half of next year. Whether the aim of Gacchangfeng Motor Corporation is too conservative or the new corporation wants to push down the planning of Changfeng Automobile to create a totally new prospective? This is another suspense only to be released in the future.(Translator: Yalong/ Jessie)

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