Mitsubishi has announced that it will cease production at its lone plant in western Europe by year’s end. Located in the Netherlands, the plant – known as Netherlands Car, or NedCar – has been in operation since 1991.
The announcement doesn’t come as a total shock as Mitsubishi’s European sales have been on the decline for the last few years. Mitsubishi sold 340,000 vehicles in Europe as recently as 2008, but recorded just 218,000 sales last year.
Of those sales, NedCar was responsible for just 50,000 units. The plant – which produces the Colt subcompact and Outlander crossover – has an annual capacity of 200,000 units.
Mitsubishi hasn’t committed to closing NedCar, but has yet to announce any future plans for the facility. NedCar employs about 1,500 people, according to Reuters.
Mitsubishi says it will continue to supply the European market with cars from Japan and Thailand, but will put a new focus on emerging markets. Mitsubishi is currently building a new plant in Thailand and is looking into expanding its operations in China and Brazil.
Mitsubishi posted a $148.85 million operating loss in Europe last year.
