BORN, Netherlands - Mitsubishi and Volvo will invest a further DM900 million ($515 million) in their NedCar joint venture at Born.
The plant's capacity will be expanded by 100,000 units annually to accommodate the new Mitsubishi Space Star compact minivan. Current capacity is 180,000 units of Mitsubishi's Carisma and Volvo's S40/V40.
The money will be raised by Mitsubishi and Volvo, not the Dutch state, which also owns a third of the plant. Peter Schalk, secretary of the management board, would not disclose how the investment will split between the two share holders.
'In the longer term it will be equally split, but it may vary from year to year depending on both partners' model strategies and launch schedules,' Schalk said.
NedCar will increase the capacity of the paint shop as well as add the assembly line.
The investment will not bring new jobs.
'Currently, we have 7,000 employees, 4,300 of them on long-term contracts,' Schalk said. 'But our target is to produce 300,000 cars annually with 5,000 employees.'
Schalk said that next year the Dutch state will decide on details of selling its share to the automaker partners.