When a foreign (outside of Japan) car maker can’t make a car as good as Japan does, what do they do? Contract a Japanese car maker to make it for them and call it their own.
Mitsubishi Motors Corp. will make electric cars for France’s PSA Peugeot Citroen Group beginning early next year. The French government is ponying up to 5,000 euros, ($6,500), and giving tax breaks to those who buy electric cars. The U.K. and Germany are doing the same. And, Europe is bent on becoming the leading electric-car market.
Mitsubishi Motors will make its i MiEV passenger car on an OEM basis. The MiEV will debut in Japan this summer. It can go 160km (100 mi) on a single charge, more than enough for one day.
Mitsubishi gets access to PSA Peugeot Citroen’s sales network throughout Europe and Peugeot can sell the electric cars under its own brand helping the company make inroads into the green vehicle market. Because they have a larger market for its cars, increased production will help lower costs and boost competitiveness.
The i MiEV will cost about $20,000 and should be competitive with conventional gasoline-powered cars in France aftert the subsidies are taken into account.