Mitsubishi buys 40 percent stake into Russian dealer’s distribution

Article by Christian A., on August 29, 2010

For about $72 million, Mitsubishi Corp. was able to buy 40 percent of Rolf's Mitsubishi car distribution business in Russia. Rolf is Russia's largest foreign car dealer and was hit hard by declining sales in Russia.

Reasons for the 54% drop in sales in August year-on-year include the fall of the ruble, lack of consumer credit, and rising unemployment. Expectations this year continue to be low.

The Association of European Businesses anticipates that in Russia, only 1.4 million cars will be sold this year, whereas in 2008, sales of 3.2 million were recorded.

In the January-August period, Rolf said Mitsubishi car sales to dealer networks totaled 25,906 units while sales to customers amounted to 27,906 units.

Rolf had been selling a highly discounted prices and it said that this added to significant losses within the distribution business.

It also recorded an overall loss for the eight-month period. Rolf expects sales of new Mitsubishi cars to remain at 3,000-4,000 units per month for the rest of 2009.

Rolf said Mitsubishi Corp., a shareholder of Japanese carmaker Mitsubishi Motors, would pay a minimum of $72 million. However, depending on trading over the next five years, further payments could reach up to a maximum of $128 million.

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries