Mitsubishi to close down European unit

Mitsubishi is faced with an unusual development of late. The  Japanese car manufacturer who has its production plant in Netherlands near Maastricht is likely to shutdown shortly. The NedCar unit which produces its flagship model Mitsubishi Outlander and Mitsubishi Colt superMini is down to under 50,000 units production per annum apart from this, the company is also facing numerous problems regarding the high labour costs. Mitsubishi was almost on the brink of initiating the production of a new model, but had to re-trace its steps due to lowered production outcome.

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However, on the sidelines, the Mitsubishi is also looking for a potential buyer to save the auto major from the heavy losses. The Netherlands Car B.A.V (NedCar), which is basically the Dutch subsidiary of Mitsubishi is the core production unit for the Japanese car manufacturer developing the new cars for the Swedish car manufacturer Volvo as well. It was initially the DAF cars production plant which was later took over by Volvo in 1970s and by 1991, Mitsubishi also joined the league to see the Mitsubishi Carisma and few cars like Smart ForFour for Mercedes-Benz  etc.

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However what remains to be seen is the impact of the likely exit of Mitsubishi from the European market on the Mitsubishi’s market share in the global car market, although India seems to be out of the scenario. With the 2012 Mitsubishi Outlander is on the cards, Indian car market seems to be most ineffectual with the localised production at its Thiruvallur manufacturing unit in Tamilnadu.

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