Japanese Auto Industry News

08/22/96

GM to Use Press Kogyo Plant for Inspecting Saturn Cars

Kyodo reported that Saturn Japan will farm out vehicle processing and inventory pooling of Saturn small passenger cars to Press Kogyo Co., starting next January. Saturn Japan also announced that it will create a supplemental parts center within the Press Kogyo plant.

Saturn Corporation, a wholly owned subsidiary of General Motors will start producing right-hand-drive Saturn cars for the Japanese market at its plant in Spring Hill, Tennessee, this fall. The U.S.-made Saturn models will enter the Japanese market next spring

Mitsubishi Motors Nears Engine Deal with China

Nikkei English News reported that the Chinese government will probably approve a joint venture between Mitsubishi Motors Corporation and China's state-owned Chinese General Company. Together the two companies will produce auto engines, industry sources said Tuesday. A Malaysian government-affiliated investment company will also take part in the project.

Mitsubishi Motors Chairman Hirokazu Nakamura and Malaysian Premier Mahathir Mohamad are expected to travel to China to sign the agreement soon.

The three parties will open a factory Harbin, Heilongjiang Province, as early as 1998 to produce up to 150,000 1,300cc gasoline engines annually. The Chinese company will use the engines in its subcompact cars. China Motor Company of Taiwan will also use them for commercial vehicles.

Initial investment for the venture is estimated at 20 billion yen. Mitsubishi Motors will supply about 20%, the Malaysian firm will invest slightly more than 10%, and Mitsubishi Corporation will put up slightly less than 10%. The Chinese firm will hold majority ownership.

Paul Dever -- The Auto Channel