Mitsubishi Electric announced today it plans to liquidate and eventually dissolve its European mobile phone R&D subsidiary company, Melco Mobile Communications Europe S.A. (MMCE). Sales activity in Europe would be discontinued after the currently released models, but after-sales-service and customer support service will be maintained.

Since its foundation in January 2003, MMCE has been involved in the research and development of Mitsubishi Electric GSM mobile phones. However, despite efforts to launch a number of highly regarded GSM models with the latest technology for European operators, there has been fierce competition with industry leaders like Nokia, Motorola, Samsung etc.

Since the European mobile phone business has not forecasted a return to profitability for the foreseeable future, for the above reason, Mitsubishi Electric has planned the liquidation of MMCE. The timeframe for liquidation will be decided based on talks with local employee representatives.

It is the second time Mitsubishi Electric, which is one of Japan's major electronic players, has seen a setback in Europe.

In the late 1990s, Mitsubishi Electric retreated from the market after the failed launch of several models under the name Trium.

See Mitsibishi M900 here

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