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Special coverage: Auto Shanghai 2007
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Due to the low revenues from just providing technology to its Chinese partners, Japanese automaker Mitsubishi Motors plans to establish a joint venture with Hunan Changfeng Group to manufacture its vehicle models in China.

Mitsubishi now holds 14.59 percent of Changfeng Motor Co Ltd, and the latter uses Mitsubishi's technology to produce a sport utility vehicle named the Pajero. But compared with other Japanese automakers like Honda, which has already started to manufacture vehicles in China, Mitsubishi needs to do more than just supply engines.

According to Mitsubishi's China program released three years ago, it will produce and sell 90,000 vehicles using Mitsubishi's technology and 220,000 under its own brand in China by 2008. In order to meet these goals, the Japanese car manufacturer has to expand its presence in China.

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The full text is available in the June Issue of AutoChina.