Dutch Firm Finalizes NedCar Deal

Dutch bus maker VDL Groep has completed an agreement to buy the Netherlands Car BV (NedCar) plant from Mitsubishi Motors Corp. on Dec. 14 for a token €1.

The facility, renamed VDL NedCar, will become an independent vehicle assembler for third parties. BMW AG has agreed to source Mini brand cars from the factory in the second half of 2014, VDL says.

MMC, which makes Colt small cars at the plant, declared in February that it would end production there by year-end. MMC and VDL unveiled a tentative deal in July that was contingent on job guarantees for the facility's 15,000 workers.

Employees will be laid off for 18 months while the factory is retooled and then return to work in phases through 2014. In the interim, the Dutch company says it will supplement government unemployment benefits so that workers receive full wages.

NedCar has capacity to produce 200,000 vehicles per year on two shifts. VDL is a supplier of car and truck parts and a producer of buses and automated production lines for carmakers.