— Mitsubishi Motors (MMC) and DaimlerChrysler (DC) have signed agreements concerning the end of production of the smart forfour model and have completed the proceedings today. The model has been produced at MMC's European production facility Netherlands Car B.V. (NedCar: Born, the Netherlands). Negotiations over the production halt began at the end of March this year.
1. Main details of the agreements
- Production of the smart forfour at NedCar will cease at the end of June.
- All of MMC's stake in MDC Power GmbH, a 50/50 joint venture engine plant with DC in Kölleda Germany, will be transferred to DC.
2. Effects on MMC's fiscal 2006 earnings
Due to compensation from DC related to the end of smart production as well as other factors, MMC will leave fiscal 2006 earnings projections (consolidated and non-consolidated) unchanged.
MMC currently produces the Colt at NedCar and announced at the end of March this year that the company will continue Colt production despite the production halt of the smart forfour.
