Mitsubishi Motors acquires 90% stake in PH transmission supplier
Mitsubishi Motors acquires 90% stake in PH transmission supplier
The acquisition is aligned with the company’s mid-term thrust to reinforce its production base in ASEAN countries

MANILA, Philippines – Japanese automaker Mitsubishi Motors Corporation (MMC) raised its stake in its Philippine transmission supplier as aligned with its core ASEAN-focused growth strategy through production base.

MMC acquired shares of Asian Transmission Corporation (ATC) from Mitsubishi Motors Philippines Corporation (MMPC) and Sojitz Corporation (Sojitz), the company announced Friday, June 27.

The stock purchase was concluded to strengthen the presence of ATC as an MMC manufacturing plant.

MMC now has a 90% share and a retirement fund of 10% in ATC.

Prior to the acquisition, MMC had a 5.29% interest in ATC, while MMPC had 79.42% and 5.29% held by Sojitz.

ATC was established in January 1973 and headquartered in Calamba, Laguna, is a supplier of transmissions and engines for automobiles, mainly to MMPC and other Association of Southeast Asian Nations (ASEAN) countries.

As of end-May 2014, it has 518 employees led by its president, Mitsutaka Kaneko.

ATC will serve as an additional component assembler for MMC vehicle manufacturing plants such as Mitsubishi Motors Thailand.

A new transmission will also be produced exclusively starting September 2014 at ATC where production engineering, equipment, and quality management system are already available, MMC said.

MMC will further reinforce its operating base in ASEAN countries where the automobile market is expected to have sustainable growth, the company said.

“MMC will do so by strengthening the structure of supplying components within ASEAN countries in addition to the restructuring of production capability in the Philippines as announced in March this year,” the company cited.

Early next year, MMPC plans to move its assembly operations from Cainta, Rizal to its acquired Ford Motor Company’s former 21-hectare manufacturing plant in Sta Rosa, Laguna.

US carmaker Ford shut down its assembly plant in the Philippines in 2012 due to lack of economies and small supply base. The company though retained its sales operations and dealership in the country. 

Mitsubishi Motors image from FotograFFF/Shutterstock

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