Mitsubishi to source SUVs in China


Mitsubishi's Airtrek, introduced by COO Rolf Eckrodt last June, may be the platform for the Chinese SUV production

Staff and wires

TOKYO, Japan -- Shares in Mitsubishi Motors are up about 2.4 percent in Tokyo Friday after a report the company will outsource production of its sport utility vehicles to a Chinese joint venture.

Its stock traded at 386 yen late in the morning session after touching 389 yen.

The Nihon Keizai Shimbun reported the joint venture, headed by Mitsubishi's partner and largest shareholder DaimlerChrysler, aimed to sell 20,000 units a year in the Chinese market.

DaimlerChrysler set up the joint venture in 1983 with Beijing Jeep Corp.

The business daily said Mitsubishi, which is Japan's No. 4 carmaker, has been discussing which SUV models the venture will produce. It said the Airtrek, released by Mitsubishi in Japan last year, was a likely platform for the Chinese vehicle.

About 100,000 SUVs a year are sold in China, the newspaper said.

Other Japanese makers including Toyota and Honda are looking to win footholds in the fast-growing China market.

Japan's No. 3 carmaker Nissan is expected to jointly produce a full range of vehicles in China with local partner Dongfeng Group, sources close to Dongfeng told Reuters news agency.