Japanese automakers Mitsubishi Motors is selling their Netherlands car plant lock, stock and barrel all for the price of €1 to busmakers VDL. The price may be ludicrous but this is being done with the sole intention to safeguard the jobs of their NedCar 1500 employees who would otherwise have had to fend for themselves. One of the terms of sale is that VDL will have to retain all Mitsubishi Motors' employees as the plant winds up production activities at the end of this year.
This plant used to manufacturer Colt subcompact and Outlander SUV but with demand on the downswing all across Europe, the automaker has decided to sell to VDL. VDL originally into bus building is now branching into production of small cars and had earlier narrowed down to using the BMW facilities.
Sale of the Netherlands plant will enable Mitsubishi Motors to concentrate on emerging markets where growth is guaranteed unlike in developed countries across the globe which is seeing a steady stagnation. Mitsubishi Motors have set up new production activities in Indonesia and Thailand and are gearing up to increase production in Brazil and China. Euro Zone debt crisis and depleting customers' demands are making it difficult for a number of automakers besides Mitsubishi Motors to stay ahead. Mitsubishi Motors sales across Europe have slipped drastically since the past one year.
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