Mitsubishi to close its only western European plant by the end of the year

Article by Christian A., on February 6, 2012

Mitsubishi will end its production at its Netherlands Car facility, its only western European plant, by the end of this year. This action was expected considering that the automaker's European sales declined to a third of its topmost figure. The NedCar plant manufactures the Outlander SUV and the Colt subcompact. However, it only comprises less than 5% of the company's worldwide output of 1.1 million units in the year until last March.

The plant employs around 1,500 people. The demand in western Europe is anticipated to remain slow-moving; thus, automakers have been changing their focus to eastern Europe and other emerging markets where sales growth rates are forecasted to be higher.

The output at NedCar has sagged to 50,000 units annually compared with its 200,000 peak capacity. There have been rumors that Mitsubishi could close the NedCar facility after it announced it would not manufacture the Colt in Europe at the end of 2012. The Japanese company stated that no decision has been made yet regarding what to do with the factory. It will supply automobiles to the European market from Thailand and Japan.

Last week, the company posted an April-December operating profit of 38.51 billion yen. On the contrary, it recorded an operating loss of 11.4 billion yen or $148.85 million in Europe. European sales hit 340,000 automobiles in 2007/08, but they declined to 218,000 units last year.

The company is constructing a new plant in Thailand and considering an increase in production in Brazil and China, where sales growth is anticipated to be higher compared to developed countries. Local competitor Nissan, which runs a vehicle factory (the largest in Britain), disclosed last month that it will construct a $2 billion facility in Mexico to increase sales in the Americas.

If you liked the article, share on:

Comments

Recommended

In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 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