The Dutch government, a shareholder in Netherlands Car B.V. (NedCar), announced in December 1998 that it would exercise its option to sell its holding (NLG 220 million) in that company to the Mitsubishi Motors group and to Volvo Car Corporation. This option constituted a term of the NedCar joint venture contract signed by the Dutch government, Volvo Car Corporation and Mitsubishi Motors in August 1991.

Following the decision, Mitsubishi Motors Corporation decided to take up in full that portion of the Dutch government's holding allotted to the Mitsubishi Motors group (NLG 110 million). On 15 February, Mitsubishi Motors paid this amount to the Dutch government and acquired a further 16.7% of NedCar stock (91,825 shares, equivalent to one half of the Dutch government's holding). This acquisition raises Mitsubishi Motors Corporation's holding from 18.3% to 35.0%, and gives Mitsubishi and Volvo equal 50 percent shares in NedCar.

NedCar has an annual production capacity of 280,000 units. In calendar 1998, the company produced 91,496 Mitsubishi models (CARISMA, SPACE STAR) and 151,004 Volvo models (S40, V40). Plans for 1999 call for full capacity utilization to produce 130,000 Mitsubishi models (CARISMA, SPACE STAR) and 150,000 Volvo models (S40, V40).

Netherlands Car B.V. Profile