Start of production at NedCar Eighteen months after the retail launch in Europe (Spring 2007) of New Outlander, the next chapter of the car’s successful story starts today with the dedication ceremony of its European production line at Mitsubishi’s NedCar plant, located in Born (The Netherlands). Whilst preparation work has been on-going since September 2007, pre-production started on 13 May, 2008 and actual production on 1 August, 2008, today’s happening marks the official beginning in presence of Maria van der Hoeven – Netherlands’ Minister of Economic Affairs, Osamu Matsumoto – MMC’s Director in charge of Global Production Group Headquarters, Tim Tozer – Mitsubishi Motors Europe’s President & CEO, Joost Govaarts – NedCar’s President & COO, Mr Shibuya - the Japanese Ambassador and government representatives.
The 1st Outlander built by NedCar has been donated to the Foundation Bio Revalidation Centre, which runs a holiday resort for handicapped children, and in 2007 also started with a Research and Treatment Center for children with brain damage. On behalf of Mitsubishi and NedCar, this Outlander has been officially handed over by Osamu Matsumoto and Joost Govaarts.
30,000 units / year To be assembled from knock-down kits received from Japan and aimed at European markets*, NedCar’s Outlander is built on a dedicated line located in the hall previously used for Space Star production, with a daily rate of 130 cars in one shift. An annual output of 30,000 units (average over life-cycle) is planned after the 2008 starting year xx. As a result, Outlander’s global production will eventually reach 180,000 units/year, adding NedCar’s volume to MMC’s Okazaki plant’s (150,000 units /year at full capacity). Manned by 600 employees, Outlander production makes the best use of existing facilities, only adding equipment where necessary (body welding, final assembly and logistics) in order to maximize assets and return on investment. As a further example, the outer side panels are pressed by NedCar’s press shop. At the start, the only European components are the PSA Peugeot Citroën- and VAG-sourced diesel engines as well as NedCar’s pressed outer side panels. Over time, local procurement may be ramped up, based on economic feasibility.
Managing success Announced on September, 18th 2007, this transfer was decided in order to ease the strain on production capacity in Japan***, thus avoiding any missed sales opportunities in view of the strong sales of Outlander in Europe and elsewhere (and of the equally successful New Lancer family today produced alongside in Japan).
European sales figures are very revealing indeed of that success and demand, boosted by the car’s design, driving dynamics, roominess & flexibility, good performance, low fuel consumption & CO2 levels and good value-for-money
- European mid-size SUV sales: 268,291 units vs. 247,784 units (+ 8.3%)
§ # 1: Volkswagen Tiguan 32,787 units (new) § # 2: Toyota RAV4 31,645 units vs. 44,860 units (- 29.5%) § # 3: Honda CR-V 29,177 units vs. 32,170 units (- 9.3%) § # 4: BMW X3 23,782 units vs. 28,717 units (- 17.2%) § # 5: Suzuki Grand Vitara 18,646 units vs. 25,271 units (-26.2%) § # 6: Land Rover Freelander 16,880 units vs. 16,647 units (+ 1.4%) § # 7: Mitsubishi New Outlander 15,271 units vs. 11,435 units (+ 33.5%) § # 8: Nissan X-Trail 13,810 units vs. 10,605 units (+ 30.2%) § # 9: Chevrolet Captiva 12,726 units vs. 13,049 units (- 2.5%) § # 10: Hyundai Santa Fe 11,349 units vs. 19,471 units (- 41.7%)
xJan.- May 2008 vs. Jan- May 2007 [Source: Jato dynamics, 20 European countries] xx New Outlander sales reached 17,085 units Jan-May 2008 within MME sales territory (34 countries) vs. 12,007 units Jan-May 2007 (+42.3%)
- Outlander conquest sales in Europe: 80% (vs. a 70% target)
Confidence booster In a difficult business environment for the automotive industry, Mitsubishi Motors decision to transfer Outlander’s European production to NedCar is both a sign of confidence in NedCar’s ability as a quality flexible production unit, as well as a further demonstration of MMC’s willingness to further improve the efficiency of its global production system xxx.
Solving capacity issues damageable for sales, this transfer will also give Mitsubishi Motors Europe and the 30+ national Mitsubishi Distributors a much-needed and dedicated volume of Outlander: a fresh and well received product very much in demand across the continent, exactly at the moment the market is shifting to on-road compact & mid-size cross-over SUVs.
Contact:
Daniel Nacass / General Manager – Public Relations, Mitsubishi Motors Europe B.V.
+ 31 6 10 92 38 42 or
This email address is being protected from spam bots, you need Javascript enabled to view it
Jacqueline van Kesteren / NedCar Communications
+ 31 46-4894557 or
This email address is being protected from spam bots, you need Javascript enabled to view it
x Excluding Russia, the Ukraine as well as Norway, Switzerland, Israel, Iceland, Macedonia and Croatia that will remain served from Japan, due to custom duty regimes.
xx NedCar’s total annual Mitsubishi volume: 60,000-70,000 Colts + 30,000 Outlanders (one-shift operation).
xxx MMC’s global factory utilization rate: 62% for FY04, 92% for FY07.
