Formally entering the temporary shutdown phase! GAC Mitsubishi Announces "Personnel Structure Optimization" | A Letter to All Employees of GAC Mitsubishi | Production Suspension
On July 13th, a letter to all employees of GAC Mitsubishi spread online. The letter stated that GAC Mitsubishi's current products have been affected by market transformation, and sales have fallen far short of expectations, causing the company to face operational difficulties. In the context of industry transformation, after careful discussions between the management and shareholders of GAC Mitsubishi, the company officially entered the temporary shutdown phase in June. At the same time, GAC Mitsubishi needs to optimize its personnel structure according to the actual situation.
Today, a reporter from First Financial News verified the above information with GAC Group, and GAC Group responded that the information we have learned from you is true. At present, the shareholders of GAC Mitsubishi are making every effort to promote the company's transformation and relief efforts. GAC Mitsubishi will optimize its personnel structure in accordance with the actual situation and laws, and make every effort to protect the legitimate rights and interests of employees.
It is reported that GAC Mitsubishi has announced an employee placement plan, with the human resources department leading the way and all departments working together to address employee demands and promote the implementation of the placement plan.
GAC Mitsubishi was founded in 2012, and its annual sales reached a historic peak of 144000 vehicles in 2018. However, it has since experienced a cliff like decline. According to the production and sales report released by GAC Group, from 2019 to 2022, GAC Mitsubishi's sales were 133000 vehicles, 75000 vehicles, 66000 vehicles, and 33600 vehicles, respectively, a year-on-year decrease of 7.64%, 43.62%, 11.99%, and 49.13%.
The Changsha factory is the only production base of GAC Mitsubishi, with a designed production capacity of 200000 vehicles per year. However, last year, the production and sales volume of GAC Mitsubishi did not exceed 40000 vehicles, and the capacity utilization rate was only 17.75%.
In the 11th year since its establishment, the business situation of GAC Mitsubishi has further deteriorated and is facing a difficult decision of advancing or retreating.
Previously, there were reports in the market that GAC Mitsubishi had suspended new car production from March to May this year. In April this year, the production and sales report of GAC Group did not list the production and sales data of GAC Mitsubishi for the first time, which also sparked speculation that Mitsubishi Motors may exit the Chinese market. Subsequently, insiders of GAC Group responded to the media that this omission was due to GAC Mitsubishi's production only accounting for a small part of its total production, and therefore being classified as "other".
According to the latest data from the China Association of Automobile Manufacturers, in May this year, the production and sales of GAC Mitsubishi were both 0; In the first five months of this year, the cumulative production of GAC Mitsubishi was only 3367 vehicles, a year-on-year decrease of 75%, and the cumulative sales were 8943 vehicles, a year-on-year decrease of 25.1%.
In May of this year, regarding the news that Mitsubishi Motors may withdraw from China that was previously rumored in the market, Mitsubishi Motors President Takao Kato stated at a media briefing, "At this stage, it has not been decided to withdraw from China's business, but structural reform is necessary." At the same time, he also said that the company will decide whether to resume production after June depending on the situation. At present, it seems that GAC Mitsubishi's plan to resume production has been "shelved" again.
The lagging transformation of new energy is considered one of the main reasons for GAC Mitsubishi's accelerated marginalization in China in recent years. The above letter also mentioned, "History is moving forward, and the automotive industry is undergoing a disruptive revolution. The automotive market we are in is rapidly transitioning from traditional fuel vehicles to new energy vehicles. In recent months, the company's management and shareholders have made the greatest efforts, with various reluctance and helplessness. However, in line with the trend, seizing the opportunity of new energy transformation, the company will usher in a rebirth."
Obviously, GAC Mitsubishi has no intention of giving up on this. On June 21st this year, the board of directors of GAC Group passed a proposal to provide entrusted loans of 942 million yuan to GAC Mitsubishi. As early as September last year, GAC Group also provided a 1 billion yuan loan to GAC Mitsubishi, but this "blood transfusion" did not help GAC Mitsubishi reverse its decline. GAC Mitsubishi suffered a loss of nearly 2 billion yuan last year, and by the end of the year, its asset liability ratio had risen to 98.33%, on the brink of insolvency.
