Japan Press: Mitsubishi, Volvo To Give Up Joint Car Development

TOKYO: Japan's Mitsubishi Motors Corp. and Sweden's AB Volvo will give up development of a new car model at a joint venture in the Netherlands, according to press reports. Volvo's parent firm, Ford Motor Co., has decided not to use Mitsubishi-made car platforms, and it's possible the two firms will dissolve the venture, Netherlands Car NV, more popularly known as NedCar, Nihon Keizai Shimbun reported Sept. 29. Ford's decision was conveyed by Volvo's President Tuve Johannesson to his Mitsubishi counterpart Katsuhiko Kawasoe at a meeting in the Netherlands on Sept. 27, the business daily said. Volvo and Mitsubishi must decide on the future of their joint company by 2004 when their shared platform will need to be replaced under the current contract. At NedCar, the two firms use a common platform to assemble Mitsubishi's Carisma and Volvo's S40 and V40. Jiji Press news agency said Mitsubishi and Volvo will continue production at NedCar using Ford-made platforms.