Global News: Mitsubishi Restructures in Europe; China's Chery Launches New Brands; China's Dongfeng Cuts Spending
By Michelle Krebs March 21, 2009In Europe, Japanese automaker Mitsubishi announced plans to restructure that including moving its corporate headquarters and eliminating jobs while in China, Chery launched two new brands as Dongfeng announced capital spending cuts.
Mitsubishi will cut 45 percent of its white-collar jobs in Europe; it employs 335 staff in the region. Many operations responsibilities will be shifted back to Japan, while remaining jobs will move from Schiphol-Rijk, near Amsterdam, and re-group in Born, near Maastricht, The Netherlands, the location of its European parts distribution center.
Mitsubishi's European sales fell 18 percent in 2008 from 2007.
In China, Chery launched two new sub-brands. Riich is a brand for high-end luxury models
and Rely is Chery's business vehicle brand. China's largest independent automaker also sells passenger vehicles under the Chery name, including the QQ, and light commercial vehicles under the Karry brand name.
Also in China, Dongfeng, the country's third largest automaker, said it will cut annual capital spending in its home market by 20 percent. It will delay or cancel non-core activities. The plan applies to Dongfeng's joint ventures with Honda, Nissan, Kia and PSA Peugeot-Citroen as well as other subsidiaries, said Hu Xindong, secretary of Dongfeng Motor.
AutoObserver's Global News report is compiled by Edmunds.com Senior Manager David Greene.
Photo by Chery
The Chery QQ is sold under the Chery brand while the Chinese automaker has created three other sub-brands for its other models.
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