Mitsubishi Closure Highlights European Production Woes

High production costs, yen strength and struggling vehicle sales in Europe have all contributed to Mitsubishi Motors' decision to stop production at its only Western European plant from 2013. BMI does not expect the move to have any significant impact on automotive demand in the region, but we believe the withdrawal highlights the wider problems faced by carmakers in the region. Thanks to political and union pressures, carmakers based in Western Europe have typically been operating under-utilized and high-cost plants and are in dire need of restructuring their European operations.

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