Mitsubishi to stop making cars in Europe

Japan's Mitsubishi Motors said it would end production at its only western European plant, in the Netherlands, at the end of this year, a move that was expected as its sales in Europe have dropped by a third from their peak.

The Netherlands Car plant makes the Colt subcompact and the Outlander sports utility vehicle, but accounted for less than 5 percent of Mitsubishi Motors' global output of 1.1 million vehicles in the year to last March.

Speculation had been rife that Mitsubishi Motors could close the plant, which employs about 1,500 people, after it had said it would stop making the Colt in Europe at the end of 2012.

The Japanese firm said it had not yet decided what to do with the plant. However, it will continue to supply vehicles to the European market from Japan and Thailand.