NedCar in Talks with Potential Buyers

Netherlands Car BV (NedCar), the De Unie union and the Dutch government are in talks with unidentified prospective bidders for the assembly plant, Dow Jones Newswires reports.

Mitsubishi Motors Corp., which owns the factory, said in February it intends to stop building vehicles there by year-end because of high labor costs, the strong yen and stiff competition. NedCar, which makes the Mitsubishi Colt minicar and Outlander SUV for the European market, is using one-fifth of its annual capacity of 200,000 vehicles.

A De Unie official tells the news service that discussions include interested parties from around the world. He says a decision should be made before July to ensure an orderly transition.

The company has said it would consider selling the factory, using it to assembly vehicles for another carmaker or handing it over to the Dutch government for a token €1. NedCar has 1,500 employees.

Nissan Motor Co. told Dutch television network Nos last month that the company is interested in taking over part of NedCar but would not buy the whole facility.

Dutch financial newspaper FD.ni reported last week that China Hi-Tech Group Co. wants to acquire NedCar. The Shanghai-based conglomerate, which builds pickup trucks, commercial vehicles and buses, owns Dutch truckmaker Ginaf and Dutch electric car maker Duratec.