MMC and Harbin China powertrain JV sign AT licensing agreement

MMC and Harbin China powertrain JV sign AT licensing agreement

Tokyo, June 26, 2008 - Mitsubishi Motors Corporation today signed a technology licensing agreement with its powertrain JV enterprise in China Harbin Dongan Automotive Engine Manufacturing Co., Ltd. (DAE) covering production of 4- and 5-speed automatic transmissions.

DAE began construction work on a new factory in March this year with a view to commence production in April 2010. Plans call for the new facility to have an annual production capacity of 150,000 units and to produce 50,000 units in its first year of operation. Production capacity will be raised to meet future increases in demand.

MMC made a 15.3 percent equity investment in DAE on its establishment in 1998 and has to date provided engineering and technical assistance covering the production of engines ranging in size from 1.3-liter to 2.0-liter and of 5-speed manual transmissions. The automatic transmission license agreement signed today will see a further handing on of Japan's outstanding engineering technology and its commitment to excellence in craftsmanship. The technology transfer in question will allow DAE 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 MMC 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.