Mitsubishi Drops Plans for GM Indian Venture

12/11/96

Nikkei English News reports that Mitsubishi Motors Corporation and major Indian automaker Hindustan Motors Ltd. have thrown in the towel on their plan to commission an Indian unit of General Motors Corporation to manufacture Mitsubishi subcompact passenger cars in India.

Earlier this Fall, the two companies had agreed with GM's Indian subsidiary to make about 10,000 Mitsubishi Lancers annually, starting in 1998. They decided to abandon the plan, when the Indian government declined to give Hindustan the tax breaks it asked for. Without the tax breaks, they say there is little advantage to making the Lancer in India through a third party.

Paul Dever -- The Auto Channel