Mitsubishi Licenses Outlander Model To Beijing Jeep Corp

Tuesday 3:08 am ET

BEIJING November 5, 2002; Dow Jones reported that Japan's Mitsubishi Motors Corp. signed an agreement Tuesday to license production in China of its Outlander model to a Sino-German joint venture, Beijing Jeep Corp.

The technical licensing agreement for manufacturing the Outlander model in China is the second such deal between Japan's fourth largest automaker and the Beijing-based joint venture.

Beijing Jeep is already expected to begin producing Mitsubishi's Pajero Sport- badged sports utility vehicle in the first quarter of 2003 as the Japanese brand's first model to be made and sold in China.

Under the new agreement, Beijing Jeep will also begin production of the Outlander model from the first quarter of 2004.

"Today's signing is an important milestone in our overall China strategy," Mitsubishi Motors Chief Executive Rolf Eckrodt said in a statement.

Beijing Jeep is a joint venture between DaimlerChrysler AG and China's Beijing Automotive Industry. DaimlerChrysler also holds a 37.3% stake in Mitsubishi Motors.

Mitsubishi Motors is the latest in a number of foreign automakers attempting to carve out a slice of China's growing passenger vehicle market.