Mitsubishi mulls assembly plant in Bangladesh

Mitsubishi Motors has signed a memorandum of understanding (MoU) with the government of Bangladesh to jointly conduct a feasibility study. “We have agreed to study the possibility of a sedan car assembling project,” Osamu Masuko, Mitsubishi’s global president, who was visiting Bangladesh told a local newspaper. If the feasibility study is concluded favorably, Progoti Industries Ltd. will start manufacturing Mitsubishi’s Lancer-EX sedan by June next year. The sedan will be powered by a 1.3-liter gasoline (petrol) engine and will join two existing Mitsubishi models, the Pajero and Pajero Sport sport utility vehicles (SUVs), assembled by state-owned Progoti for the local market. Currently, Bangladesh does not offer any incentive for manufacturing vehicles and imposes the same tax rate on vehicles produced locally as those imported into the country. Mitsubishi will initially transfer technology so that it can go on manufacturing in the future. (February 11, 2011)