Friday May 25, 2012

JAPAN NEWS AND DISCUSSION

Mitsubishi willing to sell Dutch plant for 1 euro if buyer keeps workers

Business Feb. 08, 2012 - 11:36AM JST ( 28 )

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28 Comments

-9

some14someFeb. 08, 2012 - 07:11AM JST

Headline itself suggests that Mitsubishi is not acting in a responsible manner.
-2

JapanLawGeekFeb. 08, 2012 - 07:12AM JST

An intriguing gesture, but thoroughly futile.
1

ebisenFeb. 08, 2012 - 08:41AM JST

I truly hope they are successfully doing this. Mitsubishi surely had their investment returned many times over until now. At the first sign of trouble they are doing this... Just as stinky as the "travelling factories" of nokia...
2

Raymond MccormackFeb. 08, 2012 - 09:14AM JST

If the union isn't milking Mitsubishi they should run the Factory as a subsidiary of Mitsubishi. Sadly its a losing venture and I don't want to see anyone unemployed. You can't let the whole company suffer. It sounds like they never really truly got what they had hoped for from Europe.
0

MaboDofuIsSpicyFeb. 08, 2012 - 09:18AM JST

I think it is a brilliant move. I have one Euro.
3

Christina O'NeillFeb. 08, 2012 - 09:24AM JST

1 Euro, if that is inclusive of all manafacturing equipment, and the premises, would this be a real opportunity for workers and management to run the company themselves? They have the skills that are required, and if they are able to support each other during a transition they may well be able to turn this into a lucrative co-operative.
2

Dennis BauerFeb. 08, 2012 - 09:29AM JST

Maybe a chance for a chinese car maker? or maybe the dutch government can buy it and start up making D.A.F cars again?
4

cubicFeb. 08, 2012 - 09:40AM JST

Contrary to what people above are commenting, this is not a 'gesture.' Making workers redundant in Europe (especially workers represented by a union) costs huge amounts - by making the potential buyer agree to keep the workers on, Mitsubishi get rid of an inefficient factory without taking the financial hit of redundancy payments and potential lawsuits (the amount they would get if they sold the factory at market price would probably be less than this). It's a cost-efficient way to deal with it.
3

namabiru4meFeb. 08, 2012 - 09:58AM JST

1 Euro is a good deal, but...then again not. Keep in mind, the buyer has to keep on 1500 workers and pay their salaries and benefits, pay taxes on the value of property and equipment, have a product to produce, have suppliers for raw materials and parts, and so on.

For the RIGHT company, yes, it could be a good deal. But given the failures of other companies in the Netherlands, and given the current economic situation, it may not be such a good investment.
-1

Lazzaris AlbertoFeb. 08, 2012 - 10:05AM JST

I have 1 euro!
1

Bartholomew HarteFeb. 08, 2012 - 10:12AM JST

It may very well work out for the best If all parties involved worked to the same goal!
3

gyouzaFeb. 08, 2012 - 10:12AM JST

@ebisen

At the first sign of trouble they are doing this

This plant has failed under original owner (DAF), then under Volvo, then under a JV between Volvo and Mitsubishi, and now wholly owned by Mitsubishi. Not exactly the first sign of trouble is it? It seems to have been plagued by labour disputes, and on top of that, is making cars that aren't selling very well.
1

edbardoeFeb. 08, 2012 - 10:27AM JST

Europe is the new "workers paradise" where the workers pretend to work and the company pretends to pay them. The modern twist is that the state has found capitalist suckers to own the factory and soaks them with such high taxes and social costs that the capital (the plant) is worthless. Of course the workers do not want to "own the means of production" as that would require them to reach into their own pockets to pay for their losing enterprise. So they demonstrate against the owner turning off the money tap to pay for their losing efforts. A microcosm of what will happen in whole countries without the cultural work ethic of Japan or Germany when given the socialist setup.
1

cubicFeb. 08, 2012 - 11:29AM JST

@edbardoe - exactly. There are some success stories of efficient Japanese factories in Europe, but even the most efficient ones are never comparable to home country operations. Nissan in the UK for example was always touted as a success story, but it's daily car production was still over 20% lower than what Nissan were producing in Japan.
1

BurakuminDesFeb. 08, 2012 - 11:32AM JST

The reality is no-one will purchase a loss-making operation, this is a publicity stunt. Having said that - I cannot blame Mitsubishi for pulling out of manufacturing in the likes of Holland and Australia - they can make these cars much, much cheaper in SE Asia, China or India.It is a cruel blow for the Dutch industry - who also recently buried the old SAAB company they had taken over.
-3

choiwaruoyajiFeb. 08, 2012 - 11:44AM JST

I hope that they can find a buyer... for the sake of the families of these workers.

It would be terrible to have a lot of Dutch wives in a difficult position...
-7

Sarcasm321Feb. 08, 2012 - 11:48AM JST

Who cares? Capitalism is finished, we're entering the phase of socialist one world government now, it will be so much better in the future for most people.
2

BurakuminDesFeb. 08, 2012 - 11:56AM JST

@ Sarcasm - have you been reading 1984 again, buddy?
-4

j4p4nFTWFeb. 08, 2012 - 12:30PM JST

Mitsubisshi's selfless sacrifice is a beautiful thing. If only other companies could be so munificent.
1

theResidentFeb. 08, 2012 - 12:32PM JST

.....over and over again I think Des. Delusional. :)
3

lucabrasiFeb. 08, 2012 - 01:09PM JST

Do I get a discount for cash?
0

anglootakuFeb. 08, 2012 - 01:40PM JST

It must have a lot of debts behind that..
0

cubicFeb. 08, 2012 - 02:32PM JST

European economies need to do something about their labor unions, or find something better to do with their skilled workers in manufacturing. As mentioned above by someone else, production in SE Asian countries is way more efficient and cost effective, even when you factor in logistics and importing costs.
1

ExportExpertFeb. 08, 2012 - 02:58PM JST

Sounds like it wil be a lrage building, no where does it say the new buyer has to produce cars, why not pay the 1 euro take the workers and the buildings and grow indoor hydroponic pot (legal in Holland) im sure it would be more profitable than making bitsushitty cars.
1

oberstFeb. 08, 2012 - 04:07PM JST

Bain Capital, helloooooooooooooooo ?
0

arrestpaulFeb. 09, 2012 - 07:52AM JST

I have 2 Euro's which makes me the high bidder so far.

This sounds like a good move by Mitsubishi. Selling the plant en masse means they can unload the union contracts and pensions (if that applies) as well as the equipment and buildings. Any Dutch company can step up and protect/promote the socialist Dutch work ethic and the workers.

This plant has never managed to achieve full production expectations. Why? Were they producing a "bad" product? Did the advertizing fail to entice buyers? Were the unions too difficult to work with? Was management untrainable or overbearing. I don't know but something wasn't right.

Maybe this plant could benefit from a Bain Capital type to step up. At least the plant would stay open and the workers would have someplace to report to for work. Going on strike against a company that's planning on closing a plant is a complete waste of time.
0

gyouzaFeb. 09, 2012 - 08:57AM JST

Maybe this plant could benefit from a Bain Capital type to step up. At least the plant would stay open and the workers would have someplace to report to for work.

How about US Government buying it? Look what they did for GM, turned that place around! ;)
0

oberstFeb. 10, 2012 - 08:18PM JST

The Dutch Government should buy the plant, retain all the workers, change the car label and buy all the cars for government use.