Mitsubishi Motors Corp. plans to close their factory in Western Europe, particularly in the Netherlands, starting later this year. Closure of production facilities had to be done as auto sales fell sharply in the region in three consecutive years. Conditions could not be separated from the economic crisis that hit Europe.

The factory which closed this year is The Netherlands Car or Nedcar, which usually makes commercial vehicle variants Mitsubishi Colt and Outlander sport cars. The factory is wholly owned by Mitsubishi is located in Born, Netherlands. Nedcar usually produces 5 percent of Mitsubishi to supply the entire world, with production capacity reached 200 thousand units per year.

But the production installation which has 1,500 employees, lately only able to produce 50 thousand cars a year. Nedcar production is limited because Mitsubishi sales in Europe fell sharply. In 2007-2008, sales of Mitsubishi cars can reach 340 thousand units. But last year's sales figure was down to 218 thousand units. The company is expected to suffer losses of up to US$ 287 million in Europe for the fiscal year to March.

Lately, there is speculation that Mitsubishi will stop producing Colt cars in Europe at the end of 2012, due to very poor sales record. Nevertheless, the Japanese manufacturer's management argued that they have not decided any action related to the problem in Europe. For the European market, they will rely on future production cars from Japan and Thailand.

Seeing this trend, most likely Mitsubishi will rely on the output of those factories in Thailand for the global market. Future plans of these companies are selling at more potential market such as in China and South America.

Condition of the company to the contrary experienced by competitors of Mitsubishi, Nissan Motor Co. This year, Nissan will build a production facility worth US$ 2 billion in Mexico, to improve their car sales in European and American markets.

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