Mitsubishi To End Production At Dutch Plant

Mitsubishi Motors has announced it is to end production at its only Western European plant in the Netherlands.

The firm will cease production at the plant in Born at the end of the year, citing a drop in European sales as the main factor behind the decision. The Dutch plant currently employs around 1500 workers and is responsible for the production of key models such as the Outlander and the Colt.

Mitsubishi had previously announced that the Colt would no longer be produced at the plant, however it was expected another model would replace it.

The plant began operations in 1991 and has an annual production capacity of 100,000 units, however production fell to less than half that in 2010 as the financial crisis struck.

Commenting on the decision, Mitsubishi said in a statement: 'Due to the wildly fluctuating operating environment which automobile manufacturers currently face, MMC (Mitsubishi Motors) could not come up with a reasonable solution to utilise NedCar [Netherlands Car].'

Although no plans have been announced regarding the future of the factory, Mitsubishi are said to be in talks with the Dutch government to discuss ways of keeping the plant open. Possible solutions include selling the plant to a third party.

The announcement comes after the firm announced third quarter net income of £112 million last week. Mitsubishi said they expect their net profit to rise 28% in the fiscal year through March as a result of growing sales in Asia.