Mitsubishi Motors and Harbin China powertrain venture in technology licensing agreement

26 Jun 2008

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Mitsubishi Motors Corporation yesterday signed a technology licensing agreement with its powertrain JV enterprise in China Harbin Dongan Automotive Engine Manufacturing Co., Ltd. for 4- and 5-speed automatic transmissions.

Dongan Automotive began construction work on a new factory in March this year that is scheduled to commence production in April 2010. The new facility will have an annual production capacity of 150,000 units and will produce 50,000 units in its first year of operation. With this addition, the Dongan plant's combined capacity will risse to 300,000 units / year. In 2007, the plant had sales volume of 280,000 units. 

Mitsubishi says the production capacity will be raised to meet future increases in demand.

In 1998 Mitsubishi made a 15.3-per cent equity investment in Dongan Automotive Engines and has to date provided engineering and technical assistance covering the production of engines ranging from 1.3-litre to 2.0-litre and of 5-speed manual transmissions. The automatic transmission license agreement signed yesterday will lead to a further handing of Japan's engineering technology and its commitment to the Chinese auto engineering firm .

The technology transfer will allow Dongan Automotive to supply core automotive parts not only its own group companies but also to other automobile manufacturers in China and will contribute to further growth and development of the Chinese automobile industry.

The building up of a locally-based production system will allow Mitsubishi to meet AT market needs which are expected to increase on the back of the growth of the car market in China.

The signing of the licensing agreement was attended by, among others, MMC President Osamu Masuko, Vice Chairman of Preparatory Committee China Aviation Industry Corporation, Vice President Liu Tao Avi China Industry & Technology Company Limited, Board Chairman & President Ma ChuanLi DAE, Governor Li ZhanShu The Peoples' Government of Heilongjang Province, Mayor Zhang XiaoLian The General Office of the Peoples' Government of Harbin, and Mitsubishi Corporation Motor Vehicle Business Division COO Kozo Shiraji.

The major shareholders of the Harbin Dongan Automotive, based in Harbin Heilongjang province are, Harbin Dongan Auto Engine Co.,Ltd  (36.0 per cent), Harbin Dongan Engine (Group) Co., Ltd.  (19 per cent), Harbin Aircraft Industry (Group) Harbin Hafei Motor Co., Ltd.  (15 per cent), Mitsubishi Motor Co (15.3 per cent), Malaysia China Investment Corporation:  (9 per cent), Mitsubishi Corporation  (5.7 per cent)

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