BEIJINGSHANGHAI, July 13 Reuters Mitsubishi Motors39; joint venture with China39;s Guangzhou Automobile Group GAC on Thursday said it would cut staff costs to try to revive its fortunes after sharp sales declines for sport utility vehicles SUV such as the Outlander.

Stateowned automaker GAC said in a statement the venture would look to optimise its employment as part of an effort to rescue and transform the venture.

GAC did not say how many employees would be affected. It said it would restructure in accordance with law and regulations in China.

Mitsubishi said the stakeholders in the venture were considering reviewing aspects of the business so that it could be revitalised, adding the unit which suspended production earlier this year was facing difficult conditions.

The joint venture, known as GAC Mitsubishi Motors, was launched by GAC, Mitsubishi Motors and trading house Mitsubishi Corp in 2012, focusing on SUV sales in China.

The announcement follows mounting pressure on the joint venture that makes Mitsubishi39;s Outlander model. Mitsubishi said in April it would take a 78million charge for slowing sales at the venture.

Mitsubishi did not say when the company planned to resume production in China.

SUVs represent the largest share of the growing electric vehicle EV market in China, where price cuts and the rollout of new models have taken sales away from combustion vehicles.

Established automakers have been under deepening pressure in China where the market…