Mitsubishi Motors to Sell Stake in Chinese Engine Venture

Mitsubishi Motors Corp. intends to sell its 15% stake in China-based Harbin Dongan Auto Engine Co. by March, according to The Nikkei.

The report says MMC is reducing its capacity for traditional piston engines because of an expected industrywide shift to electric vehicles.

The 21-year-old joint venture makes some 500,000 engines per year—none of them used by MMC. MMC hopes to sell its shares to Changan Automobile Group and two supplier companies in the city of Harbin, according to the report.

Mitsubishi Motors will continue to make engines in China for various customers through a separate joint venture in Shenyang, according to The Nikkei. That partnership involves a group led by China Aerospace Automotive Industry Group Co.