OREANDA-NEWS. July 11, 2012. Mitsubishi Motors Corporation (MMC) announced today it has signed a principal agreement regarding the share transfer of its subsidiary European production site Netherlands Car B.V. (NedCar; Born, the Netherlands, wholly-owned subsidiary of MMC group) with VDL Groep B.V. (VDL; Eindhoven, the Netherlands). Based on this agreement, MMC will hereafter further proceed with the negotiations with VDL to reach a final contract with the company on the transferring of NedCar shares.
 
1. Reasons for the share transfer
As previously announced on February 6, 2012, to respond to the wildly fluctuating operating environment which automobile manufacturers currently face, MMC reviewed its global production operation structure and accordingly has made a decision not to allocate a new model to be produced at NedCar from 2013 and beyond. Since then, MMC had carried out discussions with the related parties to explore the possibility of the future continuation of NedCar while making it a top priority to assure the employment of its entire employees. As a result, MMC has reached a principal agreement with VDL on the share transfer.