The request to raise stake of Mitsubishi

　　According to Beijing Times, Stubborn Mitsubishi Motors has never given up winning the controlling right within the JV soueast. However, their dream fell down again this time. July 19, the reporter learned from several reliable resources that Mitsubishi Motors was secretly pursuing to raise stake in South East Motor, but was rejected finally. Meanwhile, in order to weaken their dependence on Mitsubishi, Taiwan China Motor quietly increased R & D capabilities while soueast will also introduce more independent new car models.

　　The request to raise stake rejected

　　“Mitsubishi hope that we will try to restrain China Motor so that they can raise stake to 50%, it is unfeasible.” an insider of soueast shook his head, with confused expressions on his face.

　　Obviously, this is anew problem soueast encountered during the recovery.” If Mitsubishi Motors still can not develop business in China practically and accept the reality they do not take control, they can not have any good prospective.” the source said bluntly.

　　In fact, according to reliable sources, it has been nearly one year since Mitsubishi Motors seek to raise stake within the JV and even be equal with FUJIAN MOTOR INDUSTRY GROUP. However, the repeated request has never got the support of major shareholder FUJIAN MOTOR INDUSTRY GROUP.

　　Currently, Chinese partial FUJIAN MOTOR INDUSTRY GROUP has a 50% stake, the two foreign shareholders China Motor, and Japan Mitsubishi Motors each have a stake of 25%.

　　Mitsubishi Motors is a latecomer. Mitsubishi did not formally take stake in South East Motors until 2006. China Motor relinquished a total 25% stake at twice. Since then Mitsubishi determined to develop cars in the southeast of China. However, according to state regulations, foreign equity can only take up as much as 50% stake, if China Motor do not quit, Mitsubishi can never reach50%.

　　The reply from Taiwan China Motor

　　“This is a sensitive issue.” Huang Chongzhou, deputy general manager of Taiwan China Motor suddenly became circumspect when heard this problem, “since 25% was relinquished four years ago, the status quo should be maintained.”

　　Huang Chongzhou is a valid partner of Mitsubishi Motors. In Taiwan, almost all models produced by China Motor came from Mitsubishi. Although production is not large, China Motor occupied the second place in Taiwan.

　　Although Mitsubishi had better not be offended, China Motor has no fall-back space in equity. “ECFA has just been signed. It is still not clear that Taiwan capital will be recognized as domestic-investment. Only so, changes in ownership can become possible.” Zhu Jianzhong, vice general manager of soueast replied.

　　However, rejecting the request for Mitsubishi to raise stake will certainly reduce its enthusiasm to introduce new models, which will do harm to the development of the JV. Huang Chongzhou reflected on himself that if China Motor can provide new models to South East Motor, there will be no such troubles. “I hope such a capability can be formed as soon as possible.” Huang said ambitiously.

　　In fact, China Motor is quietly taking action. At present, China Motor is investing 1.2 billion Yuan in R & D capabilities. Besides, China Motor also has sent a dozen engineers to Automotive Technology Centre of South East Motor to help develop the South East Automotive R & D to develop new cars. Next year South East Motor will have newly developed models to be launched, which will in some extent reduce dependence on Mitsubishi.

　　　Lost Mitsubishi

　　“Mitsubishi has not coming out from the misunderstanding since it always seek to conquer others .” Insider revealed that South East Motor once tried to persuade Mitsubishi to accepted the status quo by the example of Daimler The so-called Daimler example is that Daimler gave up the namely controlling right and firstly founded the JV Daimler Hong Kong with China Motor. And then FUJIAN MOTOR INDUSTRY GROUP joined in to set up the Fujian Daimler. Since the three shareholders go on quite well together, now the supply of domestic Mercedes-Benz commercial cars is not adequate to the demand.

　　However, the lost Mitsubishi is unwilling to accept this reality. “they always blamed every bad result for not controlling.” The above source released that since the South East Motor was approved in 1995 by the way of the cross-strait cooperation, there is no reason to push back China Motor. Mitsubishi also knows it very well.

　　Presently, neither in the South East Motor, nor in Guangzhou Changfeng Automobile, Mitsubishi has not won controlling right. In Guangzhou Changfeng, Mitsubishi faces a dilemma. But at the same time, they still hope to establish joint venture with the Guangzhou Automobile with equal shares. Last year, Mitsubishi had also driven Guangzhou Automobile to negotiate to purchase South East Motor in hope of integrating its two joint ventures in China by the help of Guangzhou Automobile and then establish JV with Guangzhou Automobile separately. However, as South East Motor was in recovery, its hopes dashed.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20100722/n273675246.shtml