On Wednesday, July 11th, Mitsubishi Motors declared it will sell its plant in the Netherlands to local bus maker VDL Groep for 1 euro ($1.23).
The facility in the Netherlands is Mitsubishi’s only factory in Western Europe. The company will sell the plant to local bus maker VDL Groep under one condition: that its 1,500 employees there do not lose their jobs. This move will give Mitsubishi the possibility to focus more on emerging markets, where the company expects sales higher than in developed nations. Mitsubishi has already began production in Indonesia and Thailand and plans to increase production in China and Brazil.
“As a result of talks which prioritized the handover of all current employees of NedCar, we have basically agreed on this,” Mitsubishi Motors said in a statement.
The low demand and the euro-zone debt crisis have given auto makers a tough time in Europe, most of them choosing to focus on other markets. In February 2012 Mitsubishi decided to stop production at the end of this year at its Netherlands Car or NedCar plant, where it manufactures the Outlander SUV and the Colt subcompact. The company expects to lose around 28 billion yen ($352.33 million) on this deal.