TOKYO - Mitsubishi Motors Corp. has sharply scaled back expectations for an engine and transmission complex in China.
Mitsubishi and its Chinese partners now plan to produce 15,000 1.3- and 1.5-liter engines and related transmissions in 2000, the first year of production for a new plant complex being built in Harbin City, Heilongjian Province, in northeast China. Output will rise to around 75,000 within 10 years.
When the agreement to build the plant was signed in August 1996, the plan was to begin operations in 1999, with output to rise to 150,000 units in five years.
Mitsubishi spokesman Fumio Nishizaki insisted the project is still on track. The 75,000 target represents just the first stage, he said.
'At the next stage, we will consider increasing production to 150,000, depending on market conditions,' he said.
China's car market has slowed sharply from the torrid pace of a few years ago.