Japan's Mitsubishi Motors buys PHL transmission maker to boost ASEAN output base

Japan's Mitsubishi Motors Corp. (MMC) has bought nearly 100 percent of Asian Transmission Corp. (ATC), maker of transmission assembly and its component parts as well as the engine assembly of Mitsubishi vehicles, as part the business strategy to have a stronger production base in Southeast Asia.

 

Asian Transmission is a joint venture of Mitsubishi Motors and Sojitz Corporation, considered two of the largest conglomerates in Japan.

 

Mitsubishi Motors said it expanded its 5.29-percent equity stake in Asian Transmission by buying the 79.42-percent stake of Mitsubishi Motors Philippines Corp.  and the 5.29 percent of Sojitz in ATC.

 

The transmission assembly maker operates a factory in Calamba, Laguna and basically meets the needs of Mitsubishi Motors Philippines and other Mitsubishi Motors in Southeast Asia.

 

MMC said this development this development is part of the company's New Stage 2016 business plan that aims develop a stronger supply chain of manufacturing components in the region expand the output Mitsubishi Motors Philippines.

 

“Accordingly, MMC will utilize this advantage in the ASEAN region and produce newly-developed transmissions exclusively at ATC starting from September this year,” Mitsubishi Motors said in an e-mailed statement Friday.

 

Mitsubishi Motors Philippines bought the Ford Motor Co. factory in a 21-hectare lot in Sta. Rosa, Laguna to boost its capabilities to assemble Mitsubishi vehicles. The Japanese car maker planned to relocate to the Sta. Rosa plant early next year.

 

 Ford closed down its Philippine factory 2012 due to soft demand and an inadequate supply base for the automotive industry. – VS, GMA News